We all know
what succession certificates are, or at least we think we do. The words ‘succession
certificate’ brings to mind a document in nature of probate or letters of
administration. Therefore, on the death of a member of a co-operative housing society,
the society will usually require legal heirs to obtain a succession certificate,
before entering their names as members of the society. Even statutory bodies
like MIDC or CIDCO also follow the same practice. Even companies at the time of
transmission of shares request legal heirs to produce a succession certificate
before entering their names in the company’s register.
The general
opinion of these authorities/bodies is that the succession certificate
indemnifies them and is proof of title of the legal heir. However, this is
absolutely wrong!
What really is a succession certificate?
A succession
certificate does not determine title to the property of the deceased, nor does
it determine what property did or did not belong to the deceased. A succession certificate
merely enables a party to collect any debt or security which belonged to the deceased.
It is meant for protection of debtors, so that they should know as to whom they
can pay the debt due to the deceased person without incurring risks. Succession
certificate does not establish the title of the certificate-holder.
Section 381 of
the Indian Succession Act, 1925 reads as under:
“381. Effect of
certificate.—Subject to the provisions of this Part, the certificate of the
District Judge shall, with respect to the debts and securities specified
therein, be conclusive as against the persons owing such debts or liable on
such securities, and shall, not- withstanding any contravention of section 370,
or other defect, afford full indemnity to all such persons as regards all
payments made, or dealings had, in good faith in respect of such de
bts or securities to or with the person to whom the
certificate was granted.”
When can succession certificate not be granted?
Moreover, a succession
certificate will not be granted in cases in which probate or letters of
administration is compulsory, or where probate or letters of administration is
already granted. A succession certificate is also invalid if a previous
certificate in respect of a debt is already in existence.
Who can grant succession certificate?
“371. Court having jurisdiction to grant certificate.—The District
Judge within whose jurisdiction the deceased ordinarily resided at the time of
his death, or, if at that time he had no fixed place of residence, the District
Judge, within whose jurisdiction any part of the property of the deceased may
be found, may grant a certificate under this Part.”
It should be
noted that obtaining a succession certificate is generally easier than
obtaining probate or letters of administration. Thus, if you have been asked
for a succession certificate from any authority, you may want to think twice
and consider the above factors, before you decide to teach them exactly what a
succession certificate is. It may happen that the misconception regarding succession
certificates proves to be a boon.
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