IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJIV SAHAI ENDLAW, J.
Sushila Devi - Petitioner
Versus
State And Ors. - Respondents
CM(M) No.985 of 2017
Decided On : 12-09-2017
Succession Certificate - Execution of Order - Indian Succession Act, Sections 370-390 - Summary of key legal provisions and interpretations related to Succession Certificate and its execution discussed by the court.
Fact of the Case:
The petitioner filed a petition under Article 227 of the Constitution of India to challenge the dismissal of the Execution Petition for execution of an order directing issuance of Succession Certificate to the petitioner with respect to the debts and securities of her deceased son.
Finding of the Court:
The court found that the grant of a Succession Certificate does not confer the power to execute the certificate or the order granting it. It only entitles the grantee to claim and receive the debts and securities of the deceased, providing protection to the persons holding the debts and securities.
Issues: The main issue was whether an order of issuance of Succession Certificate or a Succession Certificate is executable against the persons holding the debts and securities of the deceased.
Ratio Decidendi: The court relied on legal provisions and interpretations from various cases to establish that the grant of a Succession Certificate does not establish the title of the grantee as the heir of the deceased and does not confer general power of administration on the estate of the deceased. It only facilitates the collection of debts and protects the parties paying debts to the representatives of the deceased.
Final Decision: The court dismissed the petition, emphasizing that the grant of a Succession Certificate does not make the certificate or the order granting it executable against the persons holding the debts and securities of the deceased.
CMs No.32990/2017 & 32991/2017 (both for exemption)
1. Allowed, subject to just exceptions.
2. The application is disposed of.
CM(M) No.985/2017
3. This petition under Article 227 of the Constitution of India impugns the order (dated 29th July, 2016 of Administrative Civil Judge, Patiala House Courts, New Delhi) of dismissal of the Execution Petition being Ex. No.07/2015 filed by the petitioner for execution of an order dated 14th November, 2014 in Succession Case No.68/2013 directing issuance of Succession Certificate to the petitioner with respect to the debts and securities of her deceased son Satish Kumar Yadav.
4. The main counsel for the petitioner has not appeared and the proxy counsel has not argued anything.
5. The matter, if passed over is unlikely to reach again and considering the fallacy and ignorance of law in filing this petition, need to adjourn the matter to another day, considering the Board of this Court, is not felt.
6. The counsel for the petitioner appears to be under a misconception of law that an order of issuance of Succession Certificate or a Succession Certificate is executable decree against the persons holding the debts and securities of the deceased.
7. A Succession Certificate only entitles the grantee thereof to claim and receive the debts and securities of the deceased, giving a full discharge to the persons who may be holding the said debts and securities, so as to relieve them from claim by multiple persons claiming to be the heirs of the deceased. Before granting such Succession Certificate, in a proceeding for grant of Succession Certificate which in any case is summary in nature, the persons holding debts and securities are not required to be impleaded and a perusal of the order dated 14th November, 2014 ordering issuance of Succession Certificate in favour of the petitioner also does not show Axis Bank, Khan Market, New Delhi and New India Insurance Co. Ltd. claimed to be holding the said debts and securities of the deceased to be parties thereto. Merely because an applicant for Succession Certificate has averred in the petition that the debts and securities mentioned in the application are due to the deceased, is no proof of the said debts and securities being due to the deceased and a proceeding for grant of Succession Certificate is not meant for adjudication of the said issues. If the persons who are claimed to be holding the debts and securities of the deceased dispute the claim, the entitlement in law of the grantee of the Succession Certificate is only to make a legal claim against them and not to execute the Succession Certificate or an order granting Succession Certificate.
8. I have recently in judgment dated 7th September, 2017 in CM(M) No.934/2017 titled Atul Maithel Vs. State Bank of India dealt with the said aspect.
9. I find the Supreme Court in Banarsi Dass Vs. Teeku Dutta (2005) 4 SCC 449 to have held (i) that the main object of a Succession Certificate is to facilitate collection of debts on succession and afford protection to parties paying debts to representatives of the deceased person; (ii) all that the Succession Certificate purports to do is to facilitate the collection of debts, to regulate the administration of succession and to protect persons who deal with the alleged representatives of the deceased persons; (iii) such a Certificate does not give any general power of administration on the estate of the deceased; (iv) the grant of a certificate does not establish title of the grantee as the heir of the deceased; (v) a Succession Certificate is intended to protect the debtors, which means that where a debtor of a deceased person either voluntarily pays his debt to a person holding a certificate or is compelled by a decree of the Court to pay it to the person, he is lawfully discharged; and, (vi) the grant of a certificate does not establish a title of the grantee as the heir of the deceased, but only furnishes him with authority to collect his debts and allows th
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