IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJIV SAHAI ENDLAW, J.
Atul Maithel - Petitioner
Versus
State Bank Of India & Anr. - Respondents
CM(M) 934 of 2017 & CM No.31221 of 2017 (for directions)
Decided On : 07-09-2017
Succession Certificate - Indian Succession Act - Section 372, Section 373, Section 375 - The court discussed the provisions of Section 373 and Section 375 of the Indian Succession Act, 1925, which govern the procedure for granting a Succession Certificate and the requisition of security from the grantee of the certificate. The court highlighted the distinction between the grant of certificate under Section 373(2) and Section 373(3), and the requirement of an indemnity bond under Section 375(1) in cases where the judge cannot decide the right to the certificate without determining intricate questions of law or fact. The judgment emphasized the obligation of the grantee to distribute the debts and securities amongst the heirs at law of the deceased and the requirement to file accounts of the debts and securities collected. The court also clarified that the grant of Succession Certificate does not cover bank lockers and discussed relevant case law on the matter.
Fact of the Case:
The petition under Article 227 of the Constitution of India challenged the order directing issuance of Succession Certificate to the petitioner under Section 372 of the Indian Succession Act, 1925.
Finding of the Court:
The court dismissed the petition, stating that the challenge was misconceived.
Issues: The issues involved the requirement of an indemnity bond, the grant of Succession Certificate, and the coverage of bank lockers under the Indian Succession Act.
Ratio Decidendi: The court clarified the procedure for granting a Succession Certificate, the distinction between different provisions of the Indian Succession Act, and the obligations of the grantee of the certificate.
Final Decision: The petition was dismissed.
1. This petition under Article 227 of the Constitution of India impugns the order [dated 14th February, 2017 in Succession Case No.6024/2016 of the Court of Administrative Civil Judge (South), Saket Courts, New Delhi] directing issuance of Succession Certificate to the petitioner on filing of court fees and an Indemnity Bond for the value of the debts and securities detailed in Schedule-A to the petition filed for obtaining Succession Certificate under Section 372 of the Indian Succession Act, 1925.
2. The counsel for the petitioner has been heard.
3. The counsels for the respondent no.1 State Bank of India and the respondent no.2 Axis Bank appear on advance notice.
4. The first argument urged by the counsel for the petitioner is that though the Succession Certificate has been ordered to be issued to the petitioner but the learned Administrative Civil Judge (South) has still required the petitioner to furnish Indemnity Bond and that too for an unlimited period. It is contended that once the Succession Certificate has been issued, there is no need for the petitioner to file an Indemnity Bond.
5. The aforesaid argument appears to be made on a misconception of law as to Succession Certificate. It has thus been enquired from the counsel for the petitioner as to what does he understand by Succession Certificate.
6. The counsel for the petitioner states that the petitioner, by the direction for issuance of Succession Certificate in his favour, has a right to the properties of the deceased mentioned in Schedule-A to the petition.
7. That is not the position in law. Sections 373 and 375 of the Indian Succession Act are as under:-
“373. Procedure on application.-(1) If the District Judge is satisfied that there is ground for entertaining the application, he shall fix a day for the hearing thereof and cause notice of the application and of the day fixed for the hearing—
(a) to be served on any person to whom, in the opinion of the Judge, special notice of the application should be given, and
(b) to be posted on some conspicuous part of the court-house and published in such other manner, if any, as the Judge, subject to any rules made by the High Court in this behalf, thinks fit,
and upon the day fixed, or as soon thereafter as may be practicable, shall proceed to decide in a summary manner the right to the certificate.
(2) When the Judge decides the right thereto to belong to the applicant, the Judge shall make an order for the grant of the certificate to him.
(3) If the Judge cannot decide the right to the certificate without determining questions of law or fact which seem to be too intricate and difficult for determination in a summary proceeding, he may nevertheless grant a certificate to the applicant if he appears to be the person having prima facie the best title thereto.
(4) When there are more applicants than one for a certificate, and it appears to the Judge that more than one of such applicants are interested in the estate of the deceased, the Judge may, in deciding to whom the certificate is to be granted, have regard to the extent of interest and the fitness in other respects of the applicants.”
And
“375. Requisition of security from grantee of certificate.-(1) The District Judge shall in any case in which he proposes to proceed under sub-section (3) or sub-section (4) of section 373, and may, in any other case, require, as a condition precedent to the granting of a certificate, that the person to whom he proposes to make the grant shall give to the Judge a bond with one or more surety or sureties, or other sufficient security, for rendering an account of debts and securities received by him and for indemnity of persons who may be entitled to the whole or any part of those debts and securities.
(2) The Judge may, on application made by petition and on cause shown to his satisfaction, and upon such terms as to security, or providing that the money received be paid into Court, or otherwise, as he thinks fit, assign the bond or other
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