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2011 Supreme(AP) 350

2010 (3) ALT 210
High Court of Andhra Pradesh
MR. JUSTICE C.V. NAGARJUNA REDDY
B.N. Madhukar Rao
Versus
Reserve Bank of India, Represented by its Executive Director, Hyderabad & Another
W.P.No.28925 of 2009
Decided on : 18-04-2011

Advocates Appeared:
Mr. Ravi Kondaveeti, Advocate.
Mr. Venkat Raju, Standing Counsel for Government of India.

Headnote:A) GOVERNMENT SECURITIES ACT, 2006, Section 7 - Indian Succession Act, 1925, Sections 2 (c) and 213:- For repayment of the amount of the Government Securities on its maturity, insisting that the will produced in support of the claim shall be rebated is not justified. Mandamus issued for repayment of the money without insisting the probate of the will. Held under Indian Succession Act, the executor of the will duly appointed by testator is entitled to receive the amount invested in Government security. (Para 8)

Judgment :

At the Interlocutory stage, the Writ Petition is taken up for hearing and disposal with the consent of the learned counsel for the parties.

In his affidavit, the petitioner has averred as under:

The maternal aunt of the petitioner by name Smt. B. Samrajya Lakshmi, invested an amount of Rs.61 lakhs under Government of India 7% Savings Bonds 2002 bearing Bond Ledger Account No. RBIHDBL 002317 with Reserve Bank of India on 9-12-2002. The due date of repayment of the amount covered under the said bond is 9-12-2008. She invested another sum of Rs.10 lakhs on 4-1-2003 in the above said bonds bearing Bond Ledger Account No. RBIHDBL 002317. The due date of repayment of the amount covered by the said bond is 4-1-2009. She also invested an amount of Rs.29 lakhs under Government of India 6.5% Savings Bonds 2003 bearing Bond Ledger Account No. RBIHDBL 002317 and the due date of repayment of the said amount is 24-9-2008. While some movable and immovable properties were bequeathed by Smt. B. Samrajya Lakshmi in favour of the petitioner and his wife, the savings bonds and other F.D. Rs. were exclusively bequeathed in favour of the petitioner and that the Will was registered as document No.62/2008 in the office of the District Registrar, Hyderabad. The petitioner’s maternal aunt died issueless on 3-6-2008. After obtaining death certificate from the Greater Hyderabad Municipal Corporation on 9-6-2008, the petitioner made an application for payment of F.D.R. amounts which were deposited by his maternal aunt in the Corporation Bank, Hyderguda and that the said amounts were paid to him by the said Bank. The petitioner sent representation to the respondents for payment of the matured amount under the Savings Bonds and the respondents in turn issued letter No. PDO (Hyd) RFB/644/2,16,009.2008-2009, dated 24-9-2008 requiring the petitioner to obtain and produce probate of Will dated 21-5-2008 to enable them to process his claim under the Government of India Savings Bonds. This communication is questioned in this Writ Petition by the petitioner.

At the hearing, Sri Ravi Kondaveeti, learned counsel for the petitioner submitted that there is no legal requirement of obtaining probate of Will by the petitioner as such a necessity arises only in cases of the Wills executed on or after 1-9-1870 within the territories which at the said date were subject to the jurisdiction of the Lieutenant Governor of Bengal or within the local limits of the ordinary original civil jurisdiction of the High Courts of Judicature at Madras and Bombay. In support of his submission, the learned counsel placed reliance on a Division Bench Judgment of this court in A.S. Murthy Vs. D.V.S.S. Murthy 1979 ALT 347 (DB) and a Judgement of a learned single Judge of this court in Gangavath Lalu Vs. Gangavathi Tulsi 2001(2) ALD 379.

Sri Venkat Raju, learned Standing Counsel for the Government of India, however placed reliance on Section 7 of the Government Securities Act, 2006 and submitted that as the petitioner has not obtained probate of Will or a succession certificate, he is not entitled to claim the amounts under the bonds which constitute ‘Government security’ within the meaning of the said Act.

I have carefully considered the submissions of the learned counsel for the parties.

In A.S. Murthy (1 supra), the question arose was whether without obtaining the probate of a Will executed by the first plaintiff, the second plaintiff is entitled to continue the suit after the death of the first plaintiff. While holding the issue in favour of the surviving plaintiff, the Division Bench of this Court considered Section 213 of the Indian Succession Act, 1925 and held as under :

“It would be seen that S.213 prohibits among others any legatee from establishing in any court of Justice, any right claimed under a will without obtaining a probate of the will or letters of administration. Sub-section (2) of S.213 excludes certain wills from the application of sub-section (1) of S.213.









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