A Comprehensive Guide to Obtaining Succession Certificates in India

A Comprehensive Guide to Obtaining Succession Certificates in India

A succession certificate in India allows heirs to inherit the movable assets of a deceased person, including debts, securities, and bank deposits, when no will exists. Civil courts issue this certificate under Part X of the Indian Succession Act, 1925. It empowers the holder to collect the deceased’s debts and securities and manage other related matters.

In this article, we will explain the step-by-step procedure to obtain a succession certificate, the types of properties it covers, and the necessary court processes, including security deposits and relevant forms.

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Step-by-Step Procedure for Obtaining a Succession Certificate

1. Determine Eligibility to Apply Succession Certificate

Any legal heir or next of kin of the deceased can apply for a succession certificate. Even if there is more than one legal heir, any of them can initiate the application process. The certificate is particularly useful when the deceased did not leave behind a will.

2. Identify the Jurisdiction of the Court:

• You need to file the application in the court that has jurisdiction over the place where the deceased resided at the time of death. If the deceased owned movable property in a different jurisdiction, you may file the application in the court where the property is located.

3. Prepare the Application

• The application must include the following details:
  • Date and place of the deceased’s death.
  • Full names of all surviving legal heirs or beneficiaries.
  • Description of the debts, securities, and other movable assets for which the certificate is sought.
  • Your relationship with the deceased and any other relevant family details.
  • Confirm that no legal barriers exist under Section 370 of the Indian Succession Act, which specifies the conditions for granting a succession certificate.

4. Submission of the Application

Once the application is ready, you submit it to the appropriate civil court. The court will then issue a public notice announcing the application. The court publishes this notice to invite any third-party objections.

5. Issuance of Public Notice and Waiting Period

The court publishes a public notice (in a local newspaper or on its notice board) for a waiting period of 45 days. During this time, anyone with an objection to your claim must submit their objection in court. If no objections are received, the court moves forward with the case.

6. Provide Evidence and Appear for Court Hearings

If no objections arise after the waiting period, or if objections are resolved, you must present evidence proving your relationship to the deceased. Start by submitting essential documents, such as the death certificate, to confirm the individual’s passing. Include bank statements to demonstrate any financial connections with the deceased. Provide agreements related to debts or securities that support your claim to the assets. These documents collectively establish your rightful claim and strengthen your position before the court. Ensuring all required paperwork is accurate and complete will expedite the court’s review process.

7. Security Deposit Requirement:

Before the court issues the succession certificate, you must provide a security deposit or bond equivalent to the value of the assets covered by the certificate. This deposit serves as a guarantee that you will manage the assets appropriately and return them if necessary. The court may also ask for a surety, depending on the case.

8. Court Issuance of the Succession Certificate:

The court will issue the succession certificate if it is satisfied with the evidence and finds no outstanding objections. This certificate grants you legal authority to collect the deceased’s debts. It also allows you to manage and oversee their securities with formal recognition. The certificate will include a detailed list of the specific debts you are entitled to collect. It will also outline the securities you are authorized to handle. Additionally, any other movable assets under your authority will be specified in the document. This certificate ensures you have the necessary legal standing to administer these assets.

9. Payment of Court Fees:

You must pay court fees based on the value of the property for which the certificate is granted. The Bombay Court Fees Act, 1959 provides a structure for calculating the fees. The court will issue the certificate after you submit the required court fee.

10. Legal Authority and Validity:

Once granted, the succession certificate gives you the legal authority to collect the deceased’s assets, including outstanding debts and investments. The certificate is valid throughout India and can be presented to banks, financial institutions, and other parties to transfer assets to the legal heirs.

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Types of Properties Covered by a Succession Certificate

A succession certificate primarily deals with movable assets. These assets include:

• Debts: Any amounts owed to the deceased by individuals or institutions, including loans the deceased had given to others.
  
• Securities: Shares, stocks, bonds, and other investments held by the deceased in financial institutions.
  
• Bank Deposits: Fixed deposits, savings accounts, and other forms of bank savings.
  
• Provident Fund and Insurance Claims: If there are no nominees listed for these benefits, a succession certificate may be required to claim them.

It is important to note that a succession certificate does not cover immovable property like land or buildings. For immovable properties, a different legal procedure such as a probate or letter of administration may be required.

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The Application Process: Security Deposits and Court Procedures

1. Application and Filing:
   • The process starts with filing an application under Section 372 of the Indian Succession Act. This application must be filed in the appropriate civil court and must include all necessary details of the deceased and their assets.
     
2. Public Notice:
   • After the application is filed, the court issues a public notice to inform others of the application and allow for any objections. The notice period typically lasts 45 days, during which anyone with a competing claim can contest the application.
     
3. Court Hearings and Investigation:
   • If objections are filed, the court investigates the claim by hearing both the applicant and the objector. The court examines the evidence and makes a decision based on the merit of the claims. If there are no objections or if the objections are resolved, the court proceeds with granting the certificate.
     
4. Security Deposit and Surety Requirement:
   • Before issuing the succession certificate, the court may ask you to provide a security bond or surety to safeguard the interests of any other beneficiaries. The amount of the security deposit is usually equivalent to the value of the assets being transferred.
     
5. Payment of Court Fees:
   • Court fees are calculated based on the value of the assets for which the certificate is sought. For example, as per the Bombay Court Fees Act, 1959, the court levies a fee on the market value of the properties mentioned in the succession certificate.

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Relevant Case Laws

1. Vishnupant Vs. Kailas, 2010 (3) Mh.L.J. 259:
   • The Bombay High Court clarified that a succession certificate is necessary when filing legal actions for recovery of debts due to the deceased. The court noted that in cases involving a cheque issued to the deceased, the complainant (legal heir) must obtain a succession certificate before proceeding with legal claims under Section 138 of the Negotiable Instruments Act.
     
2. Pramila Vs. LIC of India, 2004 (3) Mh.L.J. 609:
   • In this case, the court held that a widow can file a suit against a life insurance company for the deceased husband’s claim without needing a succession certificate, if the right to sue as a successor is clear. This case highlights situations where a succession certificate may not be mandatory, depending on the specific rights being asserted.
     
3. Sharmila Das vs. State of Orissa, 1997 II OLR 534:
   • This case reinforced the legal obligation to deposit court fees at the time of applying for a succession certificate. The court ruled that failure to pay court fees would render the certificate inoperative.
     

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Conclusion

Obtaining a succession certificate under the Indian Succession Act, 1925 involves a structured legal process aimed at ensuring that the rightful heirs manage the deceased’s movable assets responsibly. The process includes filing an application, notifying the public, providing evidence, and making security deposits. Once the court is satisfied that the applicant is entitled to manage the assets, it grants the succession certificate.

This certificate is crucial for heirs who need to collect the deceased’s debts or manage their securities and other movable assets. Understanding the legal process and the specific types of properties covered can help you navigate the procedure effectively. Court rulings, such as those in Vishnupant and Pramila, further clarify the legal standing of heirs in succession matters, making it easier to handle such cases in practice.