Bombay High Court: Declaring the judgment of Harsha Nitin Kokate v. The Saraswat Cooperative Bank Ltd, 2010 SCC OnLine Bom 615 to be per incuriam, a bench comprising of G.S. Patel, J has held that legal heirs and not the nominees will get the ownership rights of share certificates. The Court declared the earlier judgment to be per incuriam, which means it had been wrongly decided and does not have to be followed. In the Kokate judgment,the Court had mistakenly concluded that once a nomination is made, the securities in question automatically get transferred in the name of the nominee upon the death of the holder of the shares and not to the legal heirs. The Court had considered the provisions of Section 109A of the Companies Act, 1956, and Bye-Law 9.11 under the Depositories Act and held that they do not displace the law of succession. The Court also discussed the purpose of nomination under Section 39 of the Insurance Act and various Supreme Court cases where it has been laid d...