Subject to any deduction under the Rule 457 on the death of subscriber before quitting the service -(i)when the subscriber leaves a family-(a)if a nomination made by a subscriber in accordance with the provisions of Rule 438 in favour of a member or members of his family subsists, the amount standing to his credit in the fund or the part thereof to which the nomination relates shall become payable to his nominee or nominees in the proportion specified in the nomination.(b)if no such nomination in favour of a member or members of the family of the subscriber subsists or if such nomination relates only to a part of the amount standing to his credit in the fund the whole amount or the part thereof to which the nomination does not relate, as the case may be, shall, notwithstanding any nomination purporting to be in favour of any person or persons other than a member or members of his family become payable to the members of his family in equal shares :Provided that no shares shall be payable to-(1)sons who have attained legal majority;(2)sons of a deceased son who have attained legal majority;(3)married daughters whose husbands are alive;(4)married daughters of a deceased son whose husband are alive;if there is any member of the family other than those specified in Clauses (1) to (4):Provided also that the widow or widows and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the subscriber.Explanation. - Any sum payable under these rules to a member of the family of a subscriber vests in such member under Sub-section (2) of Section 3 of the Provident Funds Act, 1925.(ii)when the subscriber leaves ah family if a nomination made by him in accordance with the provisions of Rule 438 in favour of any person or persons, subsists the amount standing to his credit in the fund of the part thereof to which the nomination relates shall become payable to his nominee or nominees in the proportion specified in the nomination.Explanation. - (1) When a nominee is dependent of the subscriber as defined in Clause (c) of Section 2 of the Provident Funds Act, 1925 the amount vests in such nominee under Sub-section (2) of Section 3 of that Act.(2)When the subscriber leaves an family and no nomination, made by him in accordance with the provisions of Rule 438 subsists or if such nomination relates only to part of the amount standing to his credit in the fund the relevant provisions of Clause (b) and of Sub-clause (ii) of Clause (c) of Sub-section (1) of Section 4 of the Provident Funds Act, 1925 are applicable to the whole amount or the part thereof which the nomination does not relate.Note 1. - Payment of Provident Fund money due to a minor beneficiary of deceased subscriber may be made to the guardian nominated by the subscriber in the declaration made under the rules in force, if such declaration continues to be valid under Rule 438. When the subscriber has not nominated a guardian, a guardian appointed by the Court to receive payment on behalf of a minor beneficiary should alone be recognised even where the amount involved does not exceed the limit of Rs. 5,000 specified in Clause (b) of Sub-section (1) of Section 4 of the Provident Funds Act, 1925. But if the party pleads inability to incur expenditure for obtaining the guardianship certificate from the Court the orders of the Government should be obtained for making any payment.Note 2. - Payment may, however, be made without requiring the production of a guardianship certificate from the Court if the share of a minor beneficiary does not exceed Rs. 500/-.(i)to the natural guardian of such minor beneficiary, or(ii)in the absence of a natural guardian to the person considered fit by the Executive Officer to receive payment on behalf of such minor beneficiary on such person executing a bond in P.F. Form No. 14 appended to these rules signed by two sureties agreeing to indemnify the council against any subsequent claim which might arise :Provided that the natural guardian may, if it is considered expedient, be required to execute bond signed by two sureties agreeing to indemnify the Council against any subsequent claims which might arise before the payment is made :Provided further that in cases governed by the Hindu Law, payment may be made without requiring the production of a guardianship certificate from the Court to a Hindu widow of a deceased subscriber on behalf of her minor children, other step children, irrespective of the limit of Rs. 500 specified above. She may, if considered expedient, be required to execute a bond signed by two sureties agreeing to indemnify the Council against any subsequent, claim which might arise before the payment is made.Note 3. - Payment of provident fund money due to a person nominated to receive the whole or part of the amount standing to the credit of a subscriber in the funds shall be made as follows in case where the nominee has predeceased the subscriber and the nomination continues to be valid at the time of death of the subscriber or where the nominee dies after the subscriber but before receiving payment :(a)When the amount due to the deceased nominee does not exceed Rs. 500 the Council may authorise payment of the amount to the claimant or claimants reported to be entitled to receive payment after making such enquiry into the right and title of the claimant or claimants as the Executive Officer may deem sufficient, if the Executive Officer considers that the production of letters of administration or other legal authority may be dispensed with. The records of enquiry shall contain the signed statements of at least two trustworthy or disinterested persons;Provided that the Executive Officer may in such cases, if he considers it expedient, require the party to execute before the payment is made, a bond signed by two sureties agreeing to indemnify the Council against any subsequent claim which might arise.(b)When the amount due to the deceased nominee exceeds Rs. 500 payment shall be made by the Municipal Council to the person who produces probate or letters of administration evidencing the grant to him of administration to the estate of the deceased nominee or a succession certificate entitling the holder thereof to receive payment of the amount :Provided that in cases where the Municipal Council is satisfied to the right of title of a person claiming payment as heir of the deceased nominee and that undue delay and hardship would be caused by insisting on the production of letters of administration or other legal authority, it may with the specific approval of the State Government authorise the Executive Officer to pay the amount to the claimant on his executing a bond signed by two sureties agreeing to indemnify the Municipal Council against any subsequent claim which might arise.
