7. Payment on death of holder.-
(1) If the holder of a savings certificate dies and there is in force at the time of his death a nomination in favour of any person, payment of the sum due thereon shall be made to the nominee.
(2) Where the nominee is a minor, payment of the sum due thereon shall be made-
(a) in any case where a person has been appointed to receive it under sub-section (3) of section 6, to that person, and
(b) where there is no such person, to any guardian of the property of the minor appointed by a competent court, or where on such guardian has been so appointed, to either parent of the minor, or where neither parent is alive, to any other guardian of the minor.
(3) Where the sum due on a savings certificate is payable to two or more nominees, and either or any of them dies, the sum shall be paid to the surviving nominee or nominees.
(4) If a person dies and is at the time of his death the holder of a savings certificate and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925, is not within three months of the death of the holder produced to the prescribed authority, then, if the sum due on the savings certificate does not exceed 1[such limit as may be prescribed], the prescribed authority may pay the same to any person appearing to it to be entitled to receive the sum or to administer the estate of the deceased.
(5) Nothing contained in this section shall be deemed to require any person to receive payment of the sum due on a savings certificate before it has reached maturity or otherwise than in accordance with the terms of the savings certificate.
1. Subs. by Act 56 of 1985, s. 3, for "five thousand rupees" (w.e.f. 4-9-1985).