Write a note on nomination of successor.

Nomination of successor A nominee is a person that is appointed to receive an asset or investment in the event of one's death. A nominee may not necessary be a legal heir or a relative. Many instances arise, wherein an individual nominates a nominee, like while purchasing an Insurance Policy or Shares or while purchasing a fixed deposit in bank. It is not uncommon in partnership agreements to find a clause as to nomination of a successor who has the right to be declared and admitted as partner in the event of death or retirement of a partner. It was held by the Supreme Court in Commissioner of Income Tax v. Govindram Sugar Mills, AIR 1966 SC 24 , that the nomination is not effective in case of partnership firm consisting of two partners only as it stands dissolved on the death of a partner; nevertheless, in view of the rights and obligations of a person to be nominated as under section 31 of the Indian Partnership Act, 1932 the same principle in case of agreement between two persons is applicable in case of partnership between two partners.