The Indian Succession Act 1925, deals with the succession
certificate. The relevant section are 370 to 390 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 aperson, a creditor dies, somebody should recover such debts or money from theborrowers, which is generally done by the legal heirs, of the deceased. The lawhas facilitated this process and section 370 of India Succession Act providefor issue of Succession certificate in such cases.
But the issuance of Succession certificate has some
limitation. 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 inany Court of Law unless a competent jurisdictional court grants probate ofWill.
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 dis posed off as per the rights of the persons who are finaly
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 thesecurity from the person to whom certificate is granted as source of indemnityto the persons ultimately entitled for such moneys. The grant of thecertificate 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 (RanchhoddasV s Govindadas Banetwala(1976)78 Bomb LR 219: (1976) the court held thatsuccession certificate cannot be granted in respect of gold jewels pledged bythe 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 there of except on production of Succession certificate with the
particular debt specified there in.
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 certificatehas to be made to the district court in accordance with the procedureprescribed 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 ordermade by a court in a suit or other proceedings with respect to the effects ofdebts and securities specified in the certificate renders it proper that the certificateshould be revoked.
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