Navigating Complex Family Claims: How Should Benefits Be Handled After a Void Marriage?

Respected Seniors,

Please help clarify the below-mentioned issue:

My organization is a PSU concern. An employee, during his service tenure, had two wives. The first wife has two children. No divorce decree was obtained from the competent court regarding the dissolution of the first marriage; it was done with mutual consent. The employee then entered into a second marriage and nominated her for all service benefits. Due to the wedlock of the second marriage, a son was born. Now, the employee has passed away while in service. Both wives and their children are now claiming all service terminal benefits, including compassionate appointment. The respondent company is refusing to provide benefits to the first wife as the nomination was made in favor of the second wife by the employee during his service tenure. Kindly clarify the legal status of the following issues:

a) Is the second marriage null and void in the eyes of the law? If yes, then are the children born from the second marriage considered valid or legitimate children?

b) Can the son from the second marriage claim compassionate employment?

c) What will be the legal status of the woman who married the deceased (the second wife)?

d) How will the management pay the terminal benefits to both parties as the matter is under dispute?

e) What legal remedies can resolve the issue?

Thank you

It is not clear in your post whether the deceased employee had registered his second marriage. To the best of my knowledge, when a divorce decree is not obtained for the first marriage, the second marriage is illegal as per Indian laws. Even though nominations have been made in favor of the second wife, the first wife and two children are supposed to be the legal heirs of the deceased employee. The employer is supposed to release all the benefits to the first wife and family only. Even if the employer wants to release some benefits to the second wife and child, they need to get a No Objection Certificate (NOC) from the first wife.

In the absence of properly registered documents, both the first and second wives may be advised to sit for a discussion and arrive at a compromise regarding the sharing of benefits so the issue can be resolved. It is not advisable on the employer's part to release the benefits without mutual understanding between both wives. Also, all payments should be made to the first wife, who can then choose to share them with the second wife if she desires to do so.

In continuation of the response of our learned friend, Mr. V.M.L, I would like to state the following:

Since you yourself have clearly stated that the second marriage of the deceased employee is void, I don't want to raise any questions about the Personal Law applicable in this case. As regards the process of settlement of terminal benefits of an employee dying in harness, particularly when there are disputed claims, the employer should not decide the claims solely based on nominations. It is better to direct the claimants to obtain a succession certificate from the Court.

Coming to your queries:

a) Yes, the second marriage would be void if the deceased was not a Muslim. But the children born out of that marriage would certainly be legitimate.

b) Yes, the son or daughter born through the second wife can stake their claims for compassionate ground appointment subject to their fulfillment of the norms of eligibility prescribed under the scheme.

c) She could, at the most, be a dependent of the deceased.

d) To avoid interest liability later, the employer can deposit the statutory benefits like gratuity with the concerned authorities appointed under the respective Acts and ask the claimants to approach them.