Succession Certificate
Introduction
A succession certificate is a document given to the legitimate heirs of a deceased person by a civil court certifying that a lawful person is the successor of that deceased person. This certificate authorises the successor to accept the deceased person's debts and securities. Its main purpose is to promote the collection of debts on succession and to provide immunity to the parties owing debts to the deceased person's representatives. For the succession of immovable property, this certificate cannot be obtained.
Under the Indian Succession Act, a succession certificate is a document that gives the person who receives it the right to represent the deceased for the purpose of recovering debts and securities owed to him or payable on his behalf. Typically, in the absence of a will, a succession certificate is the main, the primary document by which the heirs can stake a claim on the properties of a deceased relative. One should apply to a magistrate or a high court for a succession certificate. Courts usually have a different cell that issues certificates of succession. There Are other records, including, for example, a gift deed, that can help when it comes to immovable property. This Certificate authorises the successors to accept the deceased person's debts and properties. Issuance of succession certificate does not confer a right of succession on the claimed property of the deceased person,because the right, title and interest of the deceased person in the claimed property or in the entire property are notdetermined. However, the successors of the deceased person intestate are entitled to inherit the property of the deceased person. In compliance with Section 370 of the Indian Succession Act, the entire estate of the deceased person under that will vest on the executor of the will when the deceased person has left a validly executed Will and Succession Certificate will not be issued in such cases. In qualifying cases, the District Court in whose jurisdiction the deceased person usually resides is the appropriate court for granting such a certificate.
Procedure for receiving a succession certificate
A petition to the District Judge under whose jurisdiction the deceased person usually resided at the time of his death or, whether he or she did not have a fixed place of residence at that time, to receive a succession certificate is to be lodged with the District Judge within whose jurisdiction any portion of the deceased's property could be located. The application may be made by a person of a sound mind, not being a minor and having an interest in the estate of the deceased. Interest may be in the form of a widow of the deceased, an individual with a beneficial interest in the debt. It is possible to issue a succession certificate to a minor through a guardian.
The petition for a certificate of succession must provide the following information: • Time of death of the deceased • Residence or details of the property of the deceased at the time of death under which the jurisdiction of the judge falls • Details of the family or other immediate relatives • The rights of the petitioner • Noimpediment to the award of the certificate • Copy of the death certificate.
Effects of succession certificate
After reviewing the petition, the court sends a notice to all the parties concerned and establishes a time period within which it can be addressed by any person who has objection. If no one contests the notice and the court is satisfied, the applicant will be issued an order to issue a succession certificate. If more than one petitioner exists,the court can jointly grant them a certificate, but for a single asset, court will not grant more than one certificate.
Sometimes, a court may demand a bond with one or more securities or surety or some other protection to account for the debts and securities obtained by the succession certificate petitioner in order to indemnify individuals who may be entitled to some parts of the debt or securities.
The main aim of this certificate is to ensure that all parties to the payment of debts are covered when such payments are made in good faith. The holder of the certificate is also empowered to obtain any interest or dividend on the securities and, as specified in the certificate, negotiate or sell those securities. All payments made on behalf of the deceased person to and by the holder of the certificate shall therefore be legally valid. This does not, however, inherently mean that the owner of the shares or the legitimate heir is the certificate holder. A Separate legal process decides the legal heirs. The certificate holder shall have the right to: a) claim over the assets and properties of the deceased person. b) Reflect the deceased in the compilation of debts and securities owed to or payable on behalf of the deceased. c) Inherit the dead person’s debts and other liabilities.
Succession certificate validity - A succession certificate is valid throughout India. In accordance with the CourtFees Act 1870, if a certificate is issued in a foreign country by an Indian representative authorized to that State, it should be stamped in order to have the same effect in India as a certificate granted in India.
In the case of Joseph Easwaran Wapshare & ors. vs. Shirley Katheleen Wheeler it was observed that for the revocation of the succession certificate pursuant to Section 383 of the Indian Succession Act, for any of the following reasons, a certificate issued may be revoked:
The procedure for obtaining the certificate was defective.
The certificate was fraudulently obtained.
Due to situations, qualification becomes worthless and inoperative.
In dealing with the debts and securities of the same deceased person, the decree or order of another competent court makes it appropriate that the certificate be revoked.
In the case of the award, refusal or revocation of a certificate, a person can appeal against the order of the District Judge to the relevant High Court.
Case laws
In the case of Kamli Devi vs. Central Coalfields Ltd. it was held that the succession certificate issued by the competent court is obligatory under the Coal Mines Provident Fund Scheme for legitimate heirs to claim pension. An appeal in which the daughter-in - law of a deceased employee of the Central Coalfields Limited(CCL) State-owned respondent company demanded payment of the family pension and other dues owed to her mother-in - law following the death of her father-in - law.
The Court observed that Clause 64 of the Coal Mines Provident Fund Scheme specifies that the full sum shall be payable to the person who is legally entitled to it, and that, according to the last proviso, if the amount to be charged exceeds Rs. 25 000, no payment shall be made to the person unless he is in possession of a certificate of succession provided by the competent court on his behalf. The Court has therefore held that, in this case, a succession certificate is important.
In the case of Monica Bibli Sood vs. Kamal Seth and ors. Petition was filed pursuant to Section 372 of theIndian Succession Act, 1925 to give a stay on the proceedings for the issuance of succession certificates. Issue Arise in this case was whether it can be permitted to stay proceedings for receiving succession certificates?
The proceedings, in a regular suit and the summary proceedings referred to in Section 372 of the IndianSuccession Act are completely different and Section 10 of the Act does not cover the latter proceedings. The Intent of issuing a certificate and its effect are entirely different and will not ultimately lead to a decision between the parties on the issue. Thus, during the pendency of the suit, proceedings cannot be stayed and hence dismissed the Petition.
Bibliography
https://www.scconline.com/blog/post/tag/succession-certificate/
https://www.moneycontrol.com/news/business/personal-finance/viewpoint-meaning-and-significance-of-succession-certificate-3829861.html
https://cleartax.in/s/succession-certificate-format
https://districts.ecourts.gov.in/sites/default/files/jcj%20rajamwrkshop1.pd
http://www.legalservicesindia.com/article/1182/Succession-Certificate.html
Courtesy - Sakshi Shairwal
Sakshar Law Associates
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