Case Note & Summary
The Petitioner, Shri Ganpati Panchayatan Sansthan Trust, a private trust managing five family deities (Lord Ganpati, Chintamaneshwar Deo, Suryanarayan Deo, Chintamaneshwari Devi, and Laxminarayan Deo), sought to open a Demat account in the names of these deities with Respondent No.3, Karur Vyasya Bank Limited, for share transactions. Respondent No.2, National Securities Depository Limited (NSDL), refused permission, leading to the filing of a writ petition. The Petitioner argued that under Hindu law, a deity is a juristic person capable of holding property and income, and there is no legal prohibition against opening a Demat account in its name. The court, after hearing submissions, held that a deity is an artificial person under Hindu law and is entitled to own assets. The Depositories Act, 1996 does not restrict Demat accounts to natural persons or companies; thus, a deity can be a beneficial owner. The court directed NSDL to permit the opening of the Demat account in the names of the five deities, subject to compliance with Know Your Customer (KYC) norms and other regulatory requirements. The petition was allowed with no order as to costs.
Headnote
A) Hindu Law - Juristic Person - Deity as Artificial Person - Deity is recognized as a juristic person under Hindu law capable of holding property and income - The court held that there is no prohibition in law for opening a Demat account in the name of a deity, as the deity is an artificial person entitled to own assets (Paras 2-3). B) Depositories Act, 1996 - Demat Account - Eligibility - Sections 10, 11, 12 Depositories Act, 1996 - The court considered whether a deity can be a beneficial owner under the Depositories Act - Held that the Act does not restrict opening of Demat accounts only to natural persons or companies; a deity, being a juristic person, can hold securities through a Demat account (Paras 2-3).
Issue of Consideration
Whether a Demat account can be opened in the name of a deity (juristic person) under the Depositories Act, 1996 and relevant regulations.
Final Decision
The court allowed the writ petition and directed Respondent No.2 (NSDL) to permit the opening of a Demat account in the names of the five deities, subject to compliance with KYC norms and other regulatory requirements. No order as to costs.
Law Points
- Deity as juristic person
- Demat account in name of deity
- Hindu law
- artificial person
- no prohibition in law
