A succession certificate is not mandatory for the transfer of a permit under the Motor Vehicles Act, 1988, as it does not fall under the category of debt or security specified in the Indian Succession Act, 1925.

1. This appeal from the judgment and order dated 25th June, 2018 passed by a learned single Judge is admitted. By consent of the parties it is heard out today and disposed of by this Judgment and order.

2. It appears that the only reason why the permit in favour of the appellant’s deceased brother is not being transferred to him is that he has not furnished a succession certificate of a competent Court in his favour.

3. We have examined the law on the subject. Section 370 of the Indian Succession Act, 1925 provides that a succession certificate shall not be granted for any debt or security for which Letters of administration or probate has to be obtained.

4. In Section 372(1)(f) it is stated that the application for this certificate should mention the debt and security in respect of which the certificate is applied.

5. Section 374 of the said Act specifies the contents of the certificate as relating to debts and securities only with the power to receive interest, dividends and transfer the same etc.

6. Section 381 is very important. It states that that the certificate would be conclusive with regard to the debts and securities specified therein as against the persons owing such debts or liable on such securities and would provide full indemnity to all such persons making payment in good faith in respect of such debts and securities, to the person to whom the certificate is granted.

7. A permit under the Motor Vehicles Act, 1988 is certainly not a debt or security.

8. Therefore, in our opinion, a succession certificate in respect of the same is not mandatory.

9. Therefore, one of the conditions stipulated in the letter dated 17th May, 2017 of the State Transport Authority, asking the appellant to produce a succession certificate, is unnecessary.

10. Mr. Chatterjee, learned Senior Advocate appearing for the appellant submits that on 16th December, 2016 his client made an application for transfer.

11. The State Transport Authority shall consider the said application together with the documents submitted with it, without insisting on a succession certificate in favour of the appellant. If all the formalities have not been complied with, then the Appellant is directed to comply with the outstanding formalities and furnish any other document that may be required by the authority under the Motor Vehicles Act, 1988 or the rules framed thereunder by 30th April, 2019. The authority shall pass a reasoned order granting transfer of the subject permit of the appellant’s brother in favour of the appellant if the necessary documents have been filed by the appellant, within six weeks from the date of compliance all formalities by the appellant.

12. The impugned order dated 25th June, 2018 is modified and superseded by this order.

13. The impugned order of the Secretary, State Transport Authority dated 29th June, 2017 is set aside.

14. The appeal (MAT 308 of 2019) and application for stay (CAN 2157 of 2019) are disposed of.