In India, the legal system provides two distinct certificates to address property inheritance when an individual passes away. These are succession certificates and heirship certificates. Both documents identify the rightful legal heirs of the deceased. However, they differ significantly in the scope of property covered, the authority granted, and the formal recognition provided. These differences stem from the legal frameworks governing each certificate and the specific needs they address in estate administration.
Let’s explore the detailed comparison between succession and heirship certificates, highlighting their applicable laws and the types of property they cover. It will also examine the extent of authority each certificate grants and the legal recognition they confer on the holders.
Applicable Laws
- Succession Certificate: The issuance of a succession certificate is governed by Part X of the Indian Succession Act, 1925. This Act outlines the procedure for granting a succession certificate. The certificate provides legal authority to collect debts and securities owed to the deceased. Succession certificates are typically issued when the deceased dies intestate (without a will). They apply to estates involving movable assets, such as bank deposits or shares.
- Legal Heirship Certificate:
The process for obtaining an heirship certificate is based on the local laws and regulations of the State. This regulation is particularly relevant in Maharashtra, where the heirship certificate recognizes the legal heirs of a deceased
individual. The heirship certificate formally identifies the individual authorized to manage the deceased’s estate. However, it does not grant direct ownership rights over the property to the holder.
Scope of Property: Movable vs. Immovable
- Succession Certificate: A succession certificate applies exclusively to movable property, including assets like debts, securities, stocks, bonds, and bank deposits. It enables the holder to collect these assets and clear any outstanding debts. The certificate also allows for the distribution of proceeds among the heirs according to the law. For example, if the deceased held stocks in a company, the succession certificate grants the legal heir access to these assets. Similarly, it authorizes the legal heir to manage any money held by the deceased in a bank.
- Heirship Certificate: An heirship certificate, on the other hand, covers both movable and immovable property. It identifies the legal heirs who are entitled to manage and control the deceased’s estate. However, the heirship certificate does not automatically grant the holder the right to transfer or sell the property. Its primary function is to confirm the legal heir’s role in managing the estate without affecting ownership rights. For instance, if the deceased owned land or a house, the heirship certificate would confirm the legal heirs’ authority to manage these properties, but it does not give them the right to dispose of the assets without further legal action.
Authority Granted
- Succession Certificate: A succession certificate confers the authority to collect debts and securities owed to the deceased. This includes recovering loans given by the deceased, claiming dividends on shares, and withdrawing funds from bank accounts.Moreover, the succession certificate allows the holder to negotiate, transfer, or sell securities, providing comprehensive control over the deceased’s movable assets. However, it does not grant any right to immovable property like land or buildings.
In the case of Vishnupant v. Kailas, 2010 (3) Mh.L.J. 259, the Bombay High Court held that a succession certificate is essential for filing a complaint under Section 138 of the Negotiable Instruments Act when the legal heir seeks to recover debts due to the deceased. - Heirship Certificate: An heirship certificate primarily grants the right to manage the deceased’s property, whether movable or immovable, but it does not confer ownership rights. This certificate provides legal recognition of the heir’s role in managing the estate, which can be important for practical purposes like maintaining property, paying debts, or entering into agreements related to the estate.However, an heirship certificate does not allow the holder to sell, transfer, or encumber the property. For that, further legal proceedings, such as obtaining letters of administration or probate, may be required.
The Aloysius Manuel D’souza v. Mary Kamal William Manuel, 2006 (6) Bom CR 56 case highlighted that the heirship certificate does not resolve the rights of ownership but merely identifies the heirs entitled to manage the estate.
Formal Recognition
- Succession Certificate: A succession certificate formally empowers the holder to act on behalf of the deceased in matters involving movable assets. It gives the person legal standing to claim debts, dividends, and securities, and to negotiate them if needed. Importantly, this certificate is conclusive as far as third parties are concerned. Once the holder collects the assets, they have the legal duty to distribute them according to the law, either through intestate succession or under a will (if applicable). The Indian Succession Act, 1925 explicitly outlines the powers conferred by a succession certificate, making it the primary document used by legal heirs to access the deceased’s movable estate.
- Heirship Certificate: The heirship certificate, while offering formal recognition, is limited in its scope. It does not provide any conclusive authority over the deceased’s assets in the same way a succession certificate does. Instead, it recognizes the status of the heir in managing the deceased’s estate but does not allow them to distribute or sell the property without further legal proceedings.For example, in Ganpati Vinayak Awchal v. Unknown, 2014 (6) Mh.L.J. 683, the court clarified that the grant of an heirship certificate is simply a formal acknowledgment of the heir’s existing legal status. It does not bestow any additional rights or confer ownership of the property.
Special Procedures and Notices
- Succession Certificate: Under Section 373 of the Indian Succession Act, the court issues a special notice to interested parties when an application for a succession certificate is made. This notice is intended to inform potential creditors, beneficiaries, and any other relevant parties of the application, allowing them to file objections if necessary. The court must resolve any objections before issuing the certificate.
- Heirship Certificate: In contrast, the process for an heirship certificate involves a public proclamation rather than a special notice. This proclamation invites anyone who wishes to contest the heirship application to raise objections within a specified period. If no objections are received, the court proceeds with granting the certificate.
Conclusion
While both succession and heirship certificates serve to identify legal heirs and manage the estates of deceased individuals, they differ significantly in terms of their legal standing and the scope of authority they grant. A succession certificate, governed by the Indian Succession Act, 1925, confers legal rights to collect and manage movable assets such as debts and securities. It offers conclusive authority to act on behalf of the deceased’s estate in dealings with financial institutions and third parties.
On the other hand, an heirship certificate, regulated under Bombay Regulation VIII of 1827, serves as formal recognition of an heir’s right to manage both movable and immovable property, but it does not confer ownership or allow for the transfer of property rights. The heirship certificate is often used to establish legal standing in managing the estate but does not replace the need for further legal action in the case of disputes or ownership transfers.
By understanding these distinctions, legal heirs can better navigate the inheritance process and ensure they take the appropriate legal steps to manage the estate effectively.
