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SUPREME COURT OF INDIA
K.T.Thomas : M.B.Shah
Rukhsana
Versus
Nazrunnisa
Case No. : 402 , 403 of 2000
Date of Decision : 1/17/00
Succession Certificate - Compensation - The court held that a Succession Certificate as envisaged in the Indian Succession Act can be granted only in respect of 'debts' or 'securities' to which a deceased was entitled. The compensation sanctioned on account of the death of the deceased was not a debt or security, but an amount which the legal representatives of the deceased can claim on their own account. The civil court will decide the legal representatives and their entitlement as per the Personal Law applicable to them.
Fact of the Case:
An amount of Rs. 18,83,385.00 was sanctioned as compensation on account of the death of an employee in Kuwait. The widow and others filed an application for disbursement of the amount, and the deceased's mother also made a claim for a portion of the amount. The High Court directed them to produce a Succession Certificate for determination of shares payable to each claimant.
Finding of the Court:
The court disagreed with the High Court's view, stating that a Succession Certificate can only be granted for 'debts' or 'securities' to which a deceased was entitled. The compensation was not an asset belonging to the deceased, but an amount claimable by the legal representatives. The civil court was tasked with determining the legal representatives and their entitlement as per the applicable Personal Law.
Issues: Disbursement of compensation amount and entitlement of legal representatives.
Ratio Decidendi: A Succession Certificate can only be granted for 'debts' or 'securities' to which a deceased was entitled. Compensation for death is not a debt or security, and the civil court will determine the legal representatives and their entitlement.
Final Decision: The impugned order was set aside, and the appeals were disposed of with no costs.
(1) LEAVE granted.
(2) AN amount of Rs. 18,83,385.00 has been sanctioned as compensation on account of death of one Mohd. Jalaluddin, who was employed in Kuwait. His widow Smt. Rukhsana and some others filed an application for disbursement of the said amount. The mother of late Mohd. Jalaluddin has also made a claim for a portion of the said amount. Now, the High Court has directed them to produce a Succession Certificate and observed that on production of such Certificate, the court before which the claims were, will determine the shares payable to each of the claimants.
(3) WE cannot approve the said view of the High Court, for, Succession Certificate as envisaged in the Indian Succession Act can be granted only in respect of "debts" or "securities" to which a deceased was entitled. The amount involved in this case was not a debt or security to which the deceased was entitled. This was a compensation sanctioned on amount of the death of the deceased and is, therefore, not an asset belonging to the deceased but an amount which the legal representatives of the deceased can claim on their own account. The civil court will only decide as to who are the legal representatives and in what shares they are entitled to as per the Personal Law applicable to them. The Parties will move appropriate application before the court concerned for expediting the procedure regarding disbursement of the amount. With these observations we set aside the impugned order.
(4) THESE appeals are accordingly disposed of. No costs.
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