Report No. 82
6.7. Rights of nominee not to be higher than those of the person making nomination.-
It is obvious that where a person makes a nomination, he cannot confer on the nominee any right higher than what he himself has. For example, in the case of a policy which would form part of the property of a coparcenary, the nomination (or any other role of conferring derivative title) cannot change the coparcenary character of the policy.1 As is often said, the stream cannot rise higher than the source. This position is implicit. However, to avoid doubts in this regard, we have considered it proper, by way of abundant auction, to make it clear in the amendment recommended by us that the nominees will be beneficially entitled unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
1. Mahadeo Nath v. Meena Devi, AIR 1976 All 64 (joint family).