A recent Kerala High Court ruling highlighted a misconception regarding joint bank lockers after a woman lost her claim to over 180 sovereigns of gold. Despite holding the locker with her late mother under an “either or survivor” mandate, the claim failed because the mother had executed a valid Will bequeathing the gold to another relative.
The court said that a locker agreement only governs access, not ownership. A valid Will takes precedence and survivorship clauses cannot override succession.
Access is not ownership
“The most pervasive and costly mistake is conflating access [to lockers] with ownership,” said Tushar Kumar, an advocate at the Supreme Court. Nominating a joint holder allows access to a locker, but does not transfer legal title to its contents.
Families assume the surviving holder will automatically inherit a locker but that need not be always.
“Proceeding on such erroneous presumption leads to prolonged litigation and even financial loss,” said Supriya Majumdar, partner at Elarra Law Offices, a legal firm.
What locker owners should do
Draft a clear Will specifying the locker, its contents and beneficiaries
Maintain an inventory of valuables, especially jewellery and documents
Align nomination, joint holding, and Will to avoid contradictions
“A Will remains the controlling instrument, but must be supported by documentation and inventory,” said B. Shravanth Shanker, managing partner at B. Shanker Advocates LLP.
Nomination, while useful for access, does not determine ownership. It only enables smoother interaction with the bank.
If disputes arise
Where ownership is unclear, families should proceed cautiously.
“The first step is to check whether a valid Will exists and identify beneficiaries,” said Majumdar. In its absence, assets are distributed under laws such as the Hindu Succession Act 1956 or Indian Succession Act 1925.
Experts also advise preventing unilateral access to the locker and relying on documentary evidence, purchase invoices, tax disclosures, or gift deeds, to establish ownership.
“Litigation often becomes complex due to lack of records, making early settlement a practical option,” Kumar added.
Fixed deposit vs locker
The “either or survivor” clause works differently for fixed deposits (FDs) and lockers.
For FDs, the surviving holder can withdraw funds, helping banks settle liabilities efficiently. “Reserve Bank of India norms recognise survivorship for deposits,” said Rohit Jain.
However, lockers operate differently.
“A locker is only a custody facility; access does not create ownership,” said Vipul Jai, partner at PSL Advocates and Solicitors.
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