The Indian Succession Act
1925, deals with the Succession certificate.The relevant sections are 370 to 390 in Part X of the act.
The Succession certificate
is representative in nature.During one’s
lifetime one might have lent money or acquired securities.He might have not have recovered those debts
or money due under securities, when he was alive. When such a person, a
creditor dies, somebody should recover such debts or money from the borrowers,
which is generally done by the legal heirs, of the deceased.The law has
facilitated this process and section 370 of Indian Succession Act provide for
issue of Succession certificate in such cases.
But the issuance of
Succession certificate has some limitations.The Succession certificate cannot be granted in respect of any debt or
security to which rights have to established by letters of Administration or
Probate as per Sections 212, 213 of Indian Succession Act.
As per the section 212, no
right to any part of the property of the person who has died without making a
Will, can be established in any Court of Law unless letters of administration
are obtained from a Court of proper jurisdiction.Similarly no right as an executor can be
established in any Court of Law unless a competent jurisdictional court grants
probate of Will.
But it should be borne in
mind that the Succession certificate does not finally adjudicate as to the
legal succession.The certificate simply authorizes some person to recover the
debts and as stated earlier it is merely representative in nature. All the
money recovered and obtained has to be disposed off as per the rights of the
persons who are finally entitled to it.The Succession certificate serves dual purposes, it prevents debts from
being time barred, on account of disputes among the legal heirs and helps the
borrowers, who can discharge the debts by paying to the representative of the
deceased, which provide a valid discharge.At certain times the court will
insist on the security from the person to whom certificate is granted as source
of indemnity to the persons ultimately entitled for such moneys.The grant of the certificate does not confer
any title on the grantee.
The word debt has a wide
meaning than generally understood.An
amount due under life insurance policy is a debt and succession certificate can
be obtained.Likewise amounts under provident fund; bank deposits, are also
covered under debts.A share certificate is a security under which money is due and court grants succession
certificate.However, in one interesting
case (Ranchhoddas Vs Govindadas Banetwala (1976) 78 Bomb LR 219: (1976)) the
court held that succession certificate cannot be granted in respect of gold
jewels pledged by the deceased in a bank as there was no element of debt in
that transaction.
It has been made clear in
the Succession Act that no court shall pass a decree against a debtor of the
deceased person for payment of debt to a person claiming, on succession, to be
entitled to the assets of the deceased person or any part thereof except on
production of Succession certificate with the particular debt specified
therein.
Any person who has
beneficial interest in debt, or security of the deceased can apply for
Succession certificate provided he is a major and of sound mind. A guardian appointed under Guardians and
Wards Act can also apply for Succession certificate.Any application for
Succession certificate has to be made to the district court in accordance with
the procedure prescribed by the code of civil procedure.
Succession
certificate can also be revoked in some instances; like, the proceedings were
defective in nature, the certificate was obtained by making false suggestion or
concealing some information, the certificate was obtained by means of untrue allegations,the certificate has become useless, inoperative on account of
circumstances that a decree or order made by a court in a suit or other
proceedings with respect to the effects of debts and securities specified in
the certificate renders it proper that the certificate should be revoked.
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