The Companies Act 1956 does not deal with succession, nor does it override the laws of succession such as the Indian Succession Act, 1925, or the Hindu Succession Act, 1956, the apex court ruled
The apex court said the vesting of securities in favour of the nominee was for the limited purpose of ensuring there is no confusion pertaining to the legal formalities to be undertaken upon the death of the holder.
As per the judgment, even if a person is a nominee in the share/debenture certificate he is not entitled to inherit it by default. The inheritance or the succession of these instruments will be determined by the contents of the deceased s will or as per the succession laws.
If a legal heir wants to challenge a will, it can only be done in accordance with the Indian Succession Act, 1925. This succession law deals with how a will should be made, grounds on which a will can be challenged. Read on to know on what basis a will can be challenged by a legal heir.