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2022 Supreme(Raj) 2876

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
Mr. Anoop Kumar Dhand, J.
Smt. Anandi & Ors. – Appellant
Versus
Ramji Lal & Ors. – Respondent
S.B. Civil Miscellaneous Appeal No. 2128/2002
Decided On : 10-10-2022

Advocates Appeared:
Mr. Kumud Singh, Adv., for the Appellant; None present, for the Respondent

The central legal point established in the judgment is that the Indian Succession Act only allows for the issuance of a Succession Certificate for debts and securities, not for immovable property.

Headnote:

Indian Succession Act - Issuance of Succession Certificate for Immovable Property - Section 372, Section 370, Section 381, Section 383

Fact of the Case:

The appeal was filed against the order allowing the issuance of a Succession Certificate for an immovable agricultural land under Section 372 of the Indian Succession Act, 1925. The appellant argued that the Act only allows for the issuance of a Succession Certificate in respect of debt or securities of the deceased, not for immovable property.

Finding of the Court:

The Court found that the Act only permits the issuance of a Succession Certificate for debts and securities, and not for immovable property. The Court held that the lower court had exceeded its jurisdiction by allowing the application for a Succession Certificate for the immovable property.

Issues: The main issue was whether a Succession Certificate could be issued for an immovable property under Section 372 of the Act.

Ratio Decidendi: The Court relied on the provisions of the Act, particularly Section 370, Section 381, and Section 383, which clearly indicate that a Succession Certificate can only be applied for in respect of debts and securities, not immovable property.

Final Decision: The impugned order allowing the application for a Succession Certificate for the immovable property was quashed and set aside, and the application was dismissed. The Court clarified that the entitlement of the respondent in the immovable property should be decided before the appropriate forum in accordance with the law.

Judgement Key Points

Key Points: - The Act permits Succession Certificate only for debts and securities, not immovable property. (!) (!) - The impugned order granting a Succession Certificate for immovable agricultural land was quashed and dismissed for lack of jurisdiction. (!) (!) - Section 381 provides that the certificate is conclusive for debts and securities specified, with indemnity; irrelevance to immovable property. (!) - The matter clarifies that entitlement to immovable property must be decided before the appropriate forum under law. (!) (!) - The court cited precedent indicating immovable property cannot be included in a succession certificate under Section 372. (!) (!) - The impugned order was quashed, and all pending applications dismissed. (!) (!) - The decision does not determine entitlement to the immovable property itself; such determination is for the proper forum. (!) - The express provisions of Sections 370, 372, 381, 383 govern certificates and their scope. (!) (!) (!) - The Gujarat High Court precedent supports deleting immovable property from the certificate without affecting other assets. (!) (!) - The Act’s provisions are silent on issuing a certificate for immovable property, indicating jurisdictional limitation. (!) (!)

What is the scope of Section 372 of the Indian Succession Act regarding the issuance of a Succession Certificate for immovable property?

What is the proper forum and jurisdiction for determining entitlement to immovable property of the deceased in relation to a Succession Certificate?

What are the consequences of issuing a Succession Certificate for debts or securities, and its effect on third parties and immovable property?


JUDGMENT

1. Instant appeal has been preferred against the order dated 09.08.2002 passed by the Court of Additional District Judge, Bandikui, District Dausa by which the application filed by the respondent No.1-Ramji Lal under Section 372 of the Indian Succession Act, 1925 (for short ’the Act of 1925’) has been allowed and a Succession Certificate of an immovable agricultural land of the deceased-Ramasya has been issued in favour of the respondent No.1 and one Anandi, who is the widow of the deceased and Soni, Sukli and Bhoti, who are his daughters.

2. The said application was allowed ex-parte.

3. Counsel for the appellant submits that going beyond the jurisdiction contained under Section 372 of the Act of 1925, the application filed by the respondent No.1-Ramji Lal has been allowed. Counsel further submits that under Section 372 of the Act of 1925, the Succession Certificate can be issued in respect of debt or securities of the deceased. Counsel submits that Succession Certificate of any immovable property cannot be issued under this provision. Counsel submits that under these circumstances, the impugned order dated 9.8.2002 passed by the Additional District Judge, Bandikui, District Dausa be quashed and set aside.

4. None has put in appearance on behalf of the respondent in spite of service of notice.

5. Part 10 of the Act stating from Section 372 to 390 deals with Succession Certificate. Sub-section 1 of the Section 370 reads thus:-

    "Section 370(1) in The Indian Succession Act, 1925:-

    (1) A succession certificate (hereinafter in this Part referred to as a certificate) shall not be granted under this Part with respect to any debt or security to which a right is required by section 212 or section 213 to be established by letters of administration or probate: Provided that nothing contained in this section shall be deemed to prevent the grant of a certificate to any person claiming to be entitled to the effects of a deceased Indian Christian, or to any part thereof, with respect to any debt or security, by reason that a right thereto can be established by letters of administration under this Act."

    6. Bare reading of Section 370 and 372 of the Act, particularly clause (f) of Sub-section 1 of Section 372 of the Act would show that a Succession Certificate can be applied only in respect of debts and securities.

    7. The expression ’debt’ has not been defined under the Act.

    8. The said expression has not been defined under the General Clauses Act as well. The ordinary meaning of the word ’debt’ means any pecuniary liability whether payable in present or in future to another in return for money, services, goods or any other obligation. In the case of securities, sub-section 2 of Section 370 of the Act enumerates the various securities envisaged by the section, which includes:

      "(a) any promissory note, debenture, stock or other security of the Central Government or of a State Government;

      (b) any bond, debenture, or annuity charged by Act of Parliament (of the United Kingdom) on the revenues of India;

      (c) any stock or debenture of, or share in, a company or other incorporated institution:

      (d) any debenture or other security for money issued by, or on behalf of, a local authority:

      (e) any other security which the (State Government) may, by notification in the official Gazette, declare to be a security for the purposes of this part."

      9. Section 381 of the Act deals with the effect of Certificate and it reads as under:

        "381. Effect of certificate.-Subject to the provisions of this Part, the certificate of the District Judge shall, with respect to the debts and securities specified therein, be conclusive as against the persons owing such debts or liable on such securities, and shall, notwithstanding any contravention of section 370, or other defect, afford full indemnity to all such persons as regards all payments made, or dealings had, in good faith in respect of such debts or securities to or with the person to whom the certificate was granted."

        10. Simila

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