Though it is settled law that nominee is mere trustee (Ghatnekar vs. Ghatnekar) still we find confusion with not only with layman but with professionals too.

It has been again specifically and clearly explained in the Judgement of Bombay High Court in Shakti Yezdani vs. Jayanand Jayant Salgaonkar as nominee is mere trustee for the actual owner so that either movable or immovable property of the owner after his/her demise can be administered till his/her legal heirs are bought on record.

There is only one exception to it and that is section 109A of the Companies Act is required to be interpreted with regard to the vesting of the shares of the holder of the shares in the nominee upon his death. The act sets out that the nomination has to be made during the life time of the holder as per procedure prescribed by law. If that procedure is followed, the nominee would become entitled to all the rights in the shares to the exclusion of all other persons. The nominee would be made beneficial owner thereof. Upon such nomination, therefore, all the rights incidental to ownership would follow.