Abstract
The position of a nominee, while being of practical significance, has also been the subject matter of substantial litigation. There are various decisions in different areas of law such as insurance law, banking law etc. that appear to take the view that the nominee is a mere trustee and not a legatee. The rule prescribed in the judgment of the Supreme Court in Sarbati Devi v. Usha Devi which laid down that the nominee in the context of a life insurance policy was a mere trustee and not a legatee has been crystallized through its incorporation into other areas of law. This article argues that though a nominee might be treated as a trustee in situations other than life insurance policies, it is not because of the reasoning in Sarbati Devi but because of specific statutory provisions which clearly define the position of a nominee. It goes on to argue in the context of a life insurance policy, the correct position of a nominee is that of a legatee and not of a trustee and that the decision in Sarbati Devi has hence been wrongly decided.
Recommended Citation
Sukthanker, Preeti
(2010)
"Legal Position of a Nominee - Legatee or Trustee,"
National Law School of India Review: Vol. 22:
Iss.
2, Article 6.
Available at:
https://repository.nls.ac.in/nlsir/vol22/iss2/6
