2006 Supreme(Mad) 3414
High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE R. BANUMATHI
Kaliammal & Others - Appellant
Versus
R. Dhanaraj & Others - Respondents
C.R.P.No.2521 of 2000
Decided On : 12 December 2006
The central legal point established in the judgment is that the compensation amount awarded to the legal heirs of a deceased claimant in a Motor Accident case is not considered a 'Debt' within the meaning of Section 214(1)(b) of the Indian Succession Act.
Headnote:
Indian Succession Act - Interpretation of 'Debt' - Section 214(1)(b) - Summary of Acts and Sections: Section 214(1)(b) of the Indian Succession Act - The court discussed the interpretation of the word 'Debt' as used in Section 214 of the Indian Succession Act and its applicability to the withdrawal of compensation amount awarded in a Motor Accident case. The court referred to various judicial decisions to establish that the compensation amount payable to the legal heirs of the deceased claimant is not a 'Debt' within the meaning of Section 214(1)(b) of the Act.
Fact of the Case:
The case involved a Civil Revision Petition against the order of the Principal District Judge, Erode, directing the petitioners to produce a Succession Certificate for withdrawal of the amount in a Motor Accident claim case. The petitioners, as legal representatives of the deceased claimant, sought to withdraw the compensation amount without obtaining a Succession Certificate.
Finding of the Court:
The court found that the compensation amount awarded to the legal heirs of the deceased claimant is not a 'Debt' within the meaning of Section 214(1)(b) of the Indian Succession Act. Therefore, the Impugned Order returning the Application and directing the petitioners to produce the Succession Certificate was set aside.
Issues: The key issue was the interpretation of the word 'Debt' as used in Section 214 of the Indian Succession Act and its applicability to the withdrawal of compensation amount awarded in a Motor Accident case.
Ratio Decidendi: The court held that the compensation amount payable to the legal heirs of the deceased claimant is not a 'Debt' within the meaning of Section 214(1)(b) of the Indian Succession Act, based on the interpretation of the word 'Debt' and relevant judicial decisions.
Final Decision: The Civil Revision petition was allowed, and the Impugned Order was set aside. The Principal District Judge, Erode, was directed to take up the application on file and pass appropriate orders in accordance with law.
(Civil Revision Petition filed under Article 227 of the Constitution of India against the order dated 22.06.2000 of the Principal District Judge, Erode in C.F.R.No.11160 of 1999, as stated therein.)
This Civil Revision Petition is directed against order dated 22.06.2000 of the Principal District Judge, Erode in C.F.R.No.11160 of 1999 in M.A.C.T.O.P.No.869 of 1993, returning the unnumbered application and directing the Petitioners to produce Succession Certificate for withdrawal of the amount in M.A.C.T.O.P.No.869 of 1993.
2.1. The Revision Petition arises out of the following facts:-
The Petitioners are Widow, Sons and Daughters of one Arumugam. The said Arumugam sustained injuries in a Motor Accident. He filed a claim Petition in M.A.C.T.O.P.No.869 of 1993 on the file of Principal District Court, Erode claiming compensation of Rs.3,00,000/- against the Respondents. After contest, an award of Rs.85,000/- was passed on 30.09.1997 in favour of the injured claimant – Arumugam and no appeal was filed against the same.
2.2 The said Arumugam died intestate on 11.08.1998 leaving behind the Petitioners as his legal representatives. The entire amount has been deposited in State Bank of India, Main Branch, Erode. After the death of Arumugam, the Petitioners have filed petition for permission to withdraw the deposited amount along with Legal Heirship Certificate dated 30.11.1998 issued by Tahsildhar, Erode. By the Impugned order, learned District Judge, Erode directed return of the Application stating that Succession Certificate as per Section 214 of the Indian Succession Act is necessary.
2.3. Assailing the Impugned Order, learned counsel for the Revision Petitioners has contended that the compensation payable under the Motor Accident cases is not a "Debt" within the meaning of Section 214 of the Indian Succession Act and the Tribunal has erroneously ordered return of Application. It was further submitted that the lower Court erred in holding that the decision reported in A.I.R. 1999 KERALA 56 is not applicable to the case.
3. In this Civil Revision Petition, an important question of law arises for consideration is with regard to the interpretation of the word "Debt" as used in Section 214 of the Indian Succession Act (In short "Act"). The question of law which arises for consideration is whether on the death of the claimant, having an award passed in his favour, whether the legal heirs of the deceased – claimant can withdraw the amount without obtaining the Succession Certificate or production of Succession Certificate. The decision on this point would depend on the interpretation of the word "Debt" as used in Section 214 of the Act.
4. Admittedly, a sum of Rs.1,39,000/- has been deposited in State Bank of India, Main Branch, Erode. Arumugam died intestate. Section 214 (1) of the Act runs as follows:-
"No Court shall -
(a) Pass a decree against a debtor of a deceased person for payment of his debt to a person claiming on succession to be entitled to the effects of the deceased person or to any part thereof, or
(b) Proceed upon an application of a person claiming to be so entitled to execute against such a debtor a decree or order for the payment of his debt, except on the production, by the person so claiming of..."
5. Under Section 214(1) of the Act, when the Suit is for recovery of "debt" filed by the representatives of a deceased person, a Succession Certificate is necessary. Similarly under Section 214(1)(b) of the Act, in an Execution Petition to execute the decree for recovery of a debt, Succession Certificate is necessary. The question for consideration is whether in the Application to withdraw the Award Amount a Succession Certificate is necessary?
6. The word "debt" appears both in clause (a) and (b) of Section 214 of the Act. A "Debt" is a sum of money, which is payable or will become payable in future. The amount deposited in the name of the deceased claimant is a compensation amount awarded in a Motor Accident case to