Give your decision on the following cases with reasons: Mr. Pyarelal a Saving Bank Account holder of a branch had given a mandate to the branch to credit proceeds of Dividend/Interest warrants as and when received from c

Like all the mandates, the mandate for the payment of Dividend warrants to the branch also ceases to be operative after the death of Mr. Pyarelal. However, it is a common practice among bankers to continue to receive such instruments even after the death of a customer. The amount credited to the account of the deceased or to a new account (to be operated by the executor / administrator) belongs to the estate of the deceased customer which is paid to the legal heirs or operated by the executor / administrator so appointed by the court. The Branch Manager should not credit the dividend warrant to the deceased's account but should hold it and await instructions from the legal heirs or the appointed executor/administrator of Mr. Pyarelal's estate.