Every country’s constitution enforces certain laws for the purpose of maintaining order and protecting the society from crimes. These laws are broadly classified into two categories i.e. Civil Law & Criminal Law.
The Civil law lays emphasis on resolving the dispute like family dispute, rent, matters, disputes relating to the sale and so forth. On the other hand, Criminal law stress on punishment to the offender, who breaches the law by acts such as, murder, rape, theft, smuggling etc.
Thus, the Indian Penal Code (IPC) is a substantive law which defines various crimes/ offences that are punishable in India and prescribes the punishment laid down for the commission of that crime/offence.
Indian Penal Code popularly known as I.P.C is the primary criminal law of India that takes into account every material aspect of the criminal law. It was enacted in the year 1862, during the British period, since then it has been amended many times. It defines all possible crimes and their related punishments that can take place in the country. The code is divided into 23 chapters which encompass 511 sections, covering different types of offences, punishments and exceptions. Under this code, the punishments are divided into five major sections, i.e. Death, imprisonment for life, general imprisonment, forfeiture of property and fine. The law applies to every individual who is an Indian origin.
Cr.P.C on the other hand, as the name suggests, is the procedural law. It lays down the procedure that is to be mandatory followed while pursuing a case. Cr.P.C also lays down the procedure to be followed by the police while doing their duty like filing of F.I.R; investigation, filing of charge sheet, etc. Cr.P.C aims at providing the proper mechanism for the imposition of criminal law in the country, by setting up the necessary machinery for arresting criminals m investigating cases, presenting criminals before the courts, collecting evidence, determining the guilt or innocence of the Accused, imposing penalties on the accused. In short, it describes the entire procedure for investigation trial, bail, interrogation arrest and so on.
Cr.P.C is main legislation on procedure for administration of substantive criminal law in India It was enacted in 1973 and came into force on 1 April, 1974.
The Indian Penal Code, most popularly referred to as I.P.C was established in the year 1860. It is also regarded as the main criminal code of India which covers all the substantial elements of the criminal law. The origin of I.P.C dates back to 1834 when the first law commission had recommended for it to be found. It is also called the general penal code of India and extends to the whole of India. It comprises of total twenty-three chapters and 511 sections overall. It has been amended over 75 times up till now. It is interesting to note that the Indian Penal Code is also said to be cogently drafted which has been able to survive major jurisdictions without major amendments, which proves that it indeed was ahead of its time.
Enacted in 1973, the Code of Criminal Procedure first came into force in 1974. The Code of Criminal Procedure can be described as the machinery which provides a mechanism for the main criminal law which is I.P.C.
It details the procedure for:-
In addition to the above, Cr.P.C also deals with the prevention of crime, family maintenance, public nuisance etc. The Code of Criminal Procedure, 1973 has undergone over 17 amendments. The Supreme Court, High Court, various level magistrates and police are the law enforcing bodies which function under the Code of Criminal Procedure, 1973.
| I.P.C | Cr.P.C |
|---|---|
| I.P.C is the fundamental criminal law which is enforced in the country. | Cr.P.C denotes the procedure that needs to be followed in terms of a criminal case. |
| I.P.C is a substantive law by nature. | Cr.P.C can be termed as being procedural in nature. |
| I.P.C is regarded as the general penal code. | Cr.P.C consolidates the general penal code. |
| I.P.C is a comprehensive code that lists down crimes and punishments for them. | Cr.P.C also has the guidelines for the court developments and power of the judges which the IPC does not. |
| Cr.P.C lists down the procedure to enact them. |
The Supreme Court held that a party who does not perform one of the essential promises in a contract is not entitled to discretionary relief of specific performance of the very contract.
The said judgment was held in the case of Surinder Kaur (d) thr. LR. Jasinderjit Singh (d) thr. LRs. vs Bahadur Singh (d) thr. LRs.” (Civil Appeal No. 7424-7425 of 2011) decided on 11.09.2019.
Whether a vendee who does not perform one of his promises in a contract can obtain the discretionary relief of specific performance of that very contract?
Mohinder Kaur entered into an agreement with Bahadur Singh in year 1964 whereby she agreed to sell the suit land for total consideration of Rs. 5605/. Out of this, Rs. 1000/- was paid as earnest money at the time of execution of agreement to sell and agreed that balance amount is to be paid at the time of registration of the sale deed. The possession was handed over to the vendee at the time of agreement. Since there was some litigation with regard to property and it was agreed between the party that the sale deed would be executed within one month from the date of decision of court.
It was further agreed between the parties that if the case is not decided within one year, then the second party shall pay to the first party the customary rent for the land.
Bahadur Singh didn’t pay the rent even till the filing of the present suit instead denied his liability to pay the same. Later, suit for specific performance was filed him. In resisting the suit for specific performance, the defendant had raised the plea that since the plaintiff had admittedly failed to pay the rent of the land in terms of Clause 3 of the agreement, he was not entitled to a decree for specific performance.
The bench observed that the payment of rent was an essential term of the contract. Plaintiff had failed to perform his part of the contract. Explanation (ii) to Section 16(c) clearly lays down that the plaintiff must prove performance or readiness or willingness to perform the contract according to its true construction. The bench further observed that plaintiff was not entitled to claim the discretionary relief of specific performance of the agreement having not performed his part of the contract even if that part is held to be a distinct part of the agreement to sell. The vendee Bahadur Singh by not paying the rent for 13 long years to the vendor Mohinder Kaur, even when he had been put in possession of the land on payment of less than 18% of the market value, caused undue hardship to her. He, by not paying the rent did not act fairly forfeited his right to get the discretionary relief of specific performance.
Referring to Section 20 of the Specific Relief Act, the bench said that the relief of specific performance is discretionary. Merely because the plaintiff is legally right, the Court is not bound to grant him the relief. It is true, that the Court while exercising its discretionary power is bound to exercise the same on established judicial principles and in a reasonable manner. Obviously, the discretion cannot be exercised in an arbitrary or whimsical manner.
The law relating to contracts in India is governed by The Indian Contract Act, 1872. However the Contract Act does not purport to codify the entire law relating to contracts. The Act specifically preserves any usage or custom of trade or any incident of any contract not inconsistent with the provisions of the Act. The law of contract confines itself to the enforcement of voluntarily created civil obligation. The law of contract is not able to take care of the whole range of agreements. Many agreements remain outside the purview because they do not fulfill the requirement of a contract.
A Contract is an agreement; an agreement is a promise and a promise is an accepted proposal. Thus, every agreement is the result of a proposal from one side and its acceptance by the other.
An agreement is regarded as a contract when it is enforceable by law. Section 10 of the Act deals with the conditions of enforceability. According to this section, an agreement is a contract if it is made for some consideration, between parties who are competent to contract, with free consent and for a lawful object.
Void Contract means that a contract does not exist at all. The law can not enforce any legal obligation to either party especially the disappointed party because they are not entitled to any protective laws as far as contracts are concerned. An agreement to carry out an illegal act is an example of a void contract or void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract.
As per Section 2(g) of The Indian Contract Act, 1872 “An agreement not enforceable by law is said to be void”, and as per Section 2(j) of The Act “A Contract which ceases to be enforceable by law becomes void when it ceases to be enforceable”. Thus Void Contracts can be of following two types:-
| Void Ab Initio | Void due to the impossibility of its performance |
| Void Ab Initio i.e. unenforceable from the very beginning. | A contract can also be void due to the impossibility of its performance. E g: If a contract is formed between two parties A & B but during the performance of the contract the object of the contract becomes impossible to achieve (due to action by someone or something other than the contracting parties), then the contract cannot be enforced in the court of law and is thus void. |
Any agreement with a bilateral mistake is void.(Section 20):- Where both the parties to an agreement are under a mistake as to matter of fact essential to agreement, the agreement is void, e.g. A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.
But a contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact. (Section 22)
Agreements which have unlawful consideration and objects are void.(Section 23 & 24):- The consideration or object of an agreement is unlawful if it is forbidden by law or of such a nature that if permitted, it would defeat the provisions of any law or is fraudulent or involves injury to the person or property of another or court regards it as immoral or opposed to public policy.
If any part of a single consideration for one or more objects, or any one or any part of any one of several consideration for a single object, is unlawful, the agreement is void. But where the legal part of an agreement is severable from the illegal, the former would be enforced.
Agreements made without consideration is void. (Section 25):-
An agreement without the consideration is void unless:-
Agreement in restraint of marriage of any major person is void (Section 26):- Every agreement in restraint of the marriage of any person, other than a minor is void. It is the policy of the law to discourage agreements which restrains freedom of marriage. The restraint may be general or partial, that is to say, the party may be restrained from marrying at all, or from marrying for a fixed time or from marrying a particular person or class of persons, the agreement is void .
Agreement in restraint of trade is void. (Section 27):- Every agreement by which anyone is restrained from exercising a lawful profession, or trade or business of any kind, is to that extent void. There are two kinds of exception to the rule, those created by Statutes:-
Sale of Goodwill:- The only exception mentioned in the proviso to section 27 is that relating to sale of goodwill. It states that “One who sells the goodwill of the business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving the title to the goodwill from him, carries on a like business therein. Provided that such limits appear to the court reasonable, regard being had to the nature of the business.
Partnership Act:- There are four provisions in the Partnership Act which validate agreements in restraint of trade. Section 11 enables partners during the continuance of the firm to restrict their mutual liberty by agreeing that none of them shall carry on any business other than that of the firm. Section 36 enables them to restrain an outgoing partner from carrying on a similar business within a specified period or within a specific local limits.
Exclusive Dealing Agreements:- Business practice in vogue is that a producer or manufacturer likes to market his goods through a sole agent or distributor and the latter agrees in turn not to deal with the goods of any other manufacturer. In the case of Percept D. Mark (India) Pvt. Ltd. v Zaheer Khan, it was observed by the Court that Negative Covenant in a contract that the covenantee would not sell a similar product of a competitor does not necessarily in restraint of trade, it could also be in furtherance of the trade.
Restraints Upon Employee:- An agreement of service often contain negative covenants preventing the employee from working elsewhere during the period covered by the agreement. Trade Secrets, name of customers etc. are also the property of master and servant is not supposed to disclose it to anyone else. An agreement of this class does not falls within Section 27.
Agreement in restraint of legal proceedings is void. (Section 28):- An agreement purporting to oust the jurisdiction of the courts is illegal and void on grounds of public policy. Section 28 of the Act renders void two kinds of agreement, namely:
This section shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration, and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred.
Nor shall this section render illegal any contract in writing, by which two or more persons agree to arbitration any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration.
But right to Appeal does not come within the purview of this section. A party to a suit may agree not to appeal against the decision.
An agreement the terms of which are uncertain is void. (Section 29):- Agreements, the meaning of which is not certain, or capable of being made certain, are void. It is a necessary requirement that an agreement in order to be binding must be sufficiently definite to enable the court to give it a practical meaning. An agreement to agree in the future is void, for there is no certainty whether the parties will be able to agree.
Where only a part or a clause of the contract is uncertain, but the rest is capable of bearing a reasonably certain meaning, the contract will be regarded as binding. Similarly , if the agreement is totally silent as to price, it will be valid, for, in that case, Section 9 of the Sale of Goods Act,1930 will apply and reasonable price shall be payable.
An agreement by way of wager (betting/gambling) is void. (Section 30):- Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made. The section does not define “Wager”. But wager can be said as a promise to give money or money’s worth upon the determination or ascertainment of an uncertain event.
An agreement contingent upon the happening of an impossible event is void. (Section 36):- A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.
Agreement to do impossible acts is void. (Section 56):- An agreement to do an act impossible in itself is void. A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.
Voidable Contract:- An agreement which is enforceable by law at the option of the one or more of the parties thereto, but not at the option of others or others, is a voidable contract. Voidable Contract are valid unless one of the parties has set it aside. Voidable Contract generally happens when one side of the party is tricked into entering a contract by other party.
Voidability of agreements without free consent:- When consent to an agreement is caused by coercion, fraud or misrepresentation the agreement is voidable at the option of the party whose consent was so caused. However, a party to a contract, whose consent was obtained by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed.
Power to set aside contract induced by Undue Influence:- When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused. A contract is said to be induced by undue influence where the relation subsisting between the contracting parties are such that one of the parties is in a position to dominate the will of the other.
In such a case the burden of proving that such a contract was not induced by undue influence shall lie upon the person who is in a position to dominate the will of other.
Liability of a Party preventing event on which contract is to take effect:- When a contract contains reciprocal promises and one party to contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented. Obvious principle is that a person cannot take advantage of his own wrong. For example A and B contract that B shall execute certain work for A for a certain sum of money. B is ready and willing to execute the work accordingly, but A prevents him from doing so, the contract is voidable at the option of B.
Effect of failure to perform at fixed time, in a contract in which time is essential:- When time is essence of contract and party fails to perform in time, it is voidable at the option of other party. A person who himself delayed the contract cannot avoid the contract on account of delay.
Consequences of rescission of Voidable Contract:– When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding a voidable contract shall, if he has received any benefit there under from another party to such contract, restore such benefit, so far as may be, to the person from whom it was received.
Mode of Communicating or revoking rescission of voidable contract:– The rescission of a voidable contract may be communicated or revoked in the same manner, and subject to the same rules, as apply to the communication or revocation of a proposal.
The Contract Act draws distinction between an agreement which is only void and the one which is unlawful or illegal. An illegal agreement is one which is forbidden by law; but a void agreement may not be forbidden, the law may merely say that if it is made, the courts will not enforce it. Thus every illegal contract is void but a void contract is not necessarily illegal.
The main difference between a void and illegal contract is that, a void contract is not punishable and its collateral transactions are not affected but on the contrary illegal contract is punishable and its collateral transactions are also void.
| Void | Voidable |
| A void contract is considered to be a legal contract that is invalid, even from the start of signing the contract. | On the other hand, a voidable contract is also a legal contract which is declared invalid by one of the two parties, for certain legal reasons. |
| While a void contract becomes invalid at the time of its creation | A voidable contract only becomes invalid if it is cancelled by one of the two parties who are engaged in the contract. |
| In the case of a void contract, no performance is possible. | Whereas it is possible in a voidable contract. While a void contract is not valid at face value, a voidable contract is valid, but can be declared invalid at any time. |
| While a void contract is nonexistent and cannot be upheld by any law. | A voidable contract is an existing contract, and is binding to at least one party involved in the contract. |
To secure the performance and enforceability of contract, the contract should be a valid contract, as the void contracts can’t be enforced.
CAN A GRANT OF SUCCESSION CERTIFICATE BE REVOKED?
Yes, Grant of Succession Certificate or Probate or even a grant of Letter of Administration can be revoked. There is a provision for Revocation of an order of grant of a probate or a letter of administration or a certificate granted for succession.
Section 383 enumerates the grounds on which a Succession Certificate may be revoked.
Clause (a) provides for revocation if the proceeding itself were defective, but at the same time, words ”defective in substance” has been incorporated which means the defect in conducting proceeding must be such so as to influence the grant of the certificate or to cause of prejudice to any party. A formal technical defect would be suffice revocation.
Similarly, clause (b) prescribes two grounds. It first says that a certificate may be revoked if it is obtained fraudulently. In the latter portion clause (b) says that the certificate may be revoked if some facts have been concealed. The phrase “Something material to the case” sufficiently indicates that the concealment of fact must materially affect the proceedings, in other words, it may be said that if some facts could lead the court to refuse the grant of certificate concealment of those facts may be taken as materially affecting the case. Likewise if because of concealment of some facts the court could not safeguard the interest of some relatives of the deceased, those facts materially affect the case.
Article 137 of the Limitation Act, 1963, which requires the application to be filed within 3 years from the date when the right to apply accrues.
Ramesh Nivrutti Bhagwat Vs Surendra Manohar Parakhe MANU/SC/1392/2019
Every company has some objectives. Some companies have objectives of making profits by carrying out trade and commerce while some companies primarily have charitable and non-profit objectives. Generally companies having non-profit objectives prefer to form Section 8 companies instead of regular NGOs and associations or Societies or Trusts. This is because Section 8 Company has limited liability, so their personal assets will not be used in paying debts of the company. Here are some advantages that these companies enjoy. These companies are referred to as a “Section 8 Company” because they get recognition under Section 8 of Companies Act, 2013.
The Companies Act defines “Section 8 company” as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.
These companies were previously defined under Section 25 of Companies Act, 1956 with more or less the same provisions. The new Act has, however, prescribed more objectives that Section 8 companies can have. Famous examples of Section 8 companies include Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industries (CII). The objective of these companies is facilitating the growth of trade and commerce and India.
A person or an association of persons intending to be registered under Section 8 of the Companies Act, 2013 as a limited company –
Section 8 companies require a grant of a license by the Central Government. All such licenses are revocable as well on the following grounds:
The Government can even order the company to be wound-up or amalgamated with another similar company under certain circumstances. The Government has to hear the company before passing such orders.
Section 8 companies can wind-up or dissolve themselves either voluntarily or under orders given by the Central Government. If any assets remain after satisfaction of debts and liabilities upon such winding-up, the National Company Law Tribunal can order the transfer of these assets to a similar company. It can also order that they must be sold and the proceeds of this sale should be credited to the Insolvency and Bankruptcy Fund.
Any company that contravenes provisions of Section 8 is punishable with a fine ranging from Rs. 10 lakhs to Rs. 1 crore and directors and every officer of the company who are in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five rupees, or with both. Such officers can also face prosecution under stringent provisions of Section 447 (dealing with fraud) if proved that the any affairs of the company were conducted fraudulently.
A section 8 company yields an array of benefits, unlike a Society or Trust. Following is the list of advantages for companies registered under Section 8:
Following are the drawbacks that every company registered under Section 8 has to bear:
India still lacks behind in many areas in regard to education, healthcare, sports training etc. These aspects are provided by many nonprofit organizations. These NPO’s are the driving force behind the development of the society. The companies incorporated under Section 8 of the Companies Act, 2013 go a long way betterment of the society.
To motivate more people to help society, and award those who already do so, Incorporation of a company under Section 8 is a very convenient process. It does not take too much time and comes with a lot of advantages, and relaxed norms. All you need to ensure is that you fill the correct forms and carry the right documents you can get a Section 8 company incorporated easily. But above all you need to run it as per law, failing which consequences can be very high.
A Succession Certificate establishes who the legal heirs are and the authenticity of the successor. It is a Certificate given to the successor of a deceased person who dies without leaving a will. The list of debts, securities and assets of the deceased is mentioned therein in the certificate of succession. The certificate provides detailed information about the deceased like who are the other surviving legal heirs, what is the relation of the petitioner with the deceased etc. Besides, it also contains data regarding the time, date and place of death of the deceased and so on. It means that the certificate holder has authority over the deceased person’s assets of the deceased. The assets may include Insurance, Mutual Funds, Pension (in Employees Provident Fund or otherwise), Retirement Benefits or any other service benefits. In other words, it helps the grantee or the receiver, to recover the debts due to the deceased person.
In the absence of a will, this is the primary certificate through which the heirs can stake a claim to the assets of a deceased relative.
If you are wondering what is succession certificate, know that it is a legal recognition through which the heirs can claim the assets of the deceased relative, in the absence of a will. Moreover, it protects the payer that the debt released by him has gone to a certified person.
The successor would receive assets as well as inherit any debts/loans to be paid, as per the Indian Succession Act, 1925. The governing Sections are 380, 381 & 382.
The Legal Term, for when a person has died, without making a legally valid Will. Intestate may be the entire assets or some particular ones only. In other words, intestacy is either total or partial.
Total intestacy is when the deceased has not named any beneficiary to any of his property. In other words, the will wasn’t made or doesn’t exist. Partial intestacy is where the deceased effectively disposes of some of the beneficial interest in his property by will. But not all.
If the deceased has left no will. He has died intestate in respect of the whole of his property.
When the deceased has left a will appointing someone as his executor. However, the will doesn’t contain any other provision. Then it is understood that he has died intestate in respect of the distribution of his property.
If the deceased has bequeathed his whole property for an illegitimate or illegal purpose. In such a case, legally, he has died intestate. When a will is partially incapable of being operative. For example, he has bequeathed Rs. 1000 to A and Rs. 1000 to the eldest son of B. Made no other bequest. And has died leaving the sum of Rs. 2000.00 and no other property. B dies before the deceased without ever having a son. Then he has died intestate in respect of the distribution of Rs.1000.
Nonetheless, you might want to know when succession certificate is not required. Well! In the cases where the deceased has made a valid will, providing clear and complete details about property distribution, there you won’t need a succession certificate. The execution of the Will is what you must opt for.
A succession certificate is issued by District Judge of the relevant jurisdiction. The relevant jurisdiction would be where the deceased person ordinarily resided at the time of his death or if no such place is available, the jurisdiction within which any property belonging to the deceased may be found.
The succession certificate stands valid anywhere within India. However, where a certificate has been granted to a person who is a resident of a foreign country, by an Indian representative (as appointed by the government), of such foreign country, the certificate will stand valid only if properly stamped.
The main purpose of this certificate is to provide protection to all parties paying debts where such payments are made in good faith. The certificate holder is also empowered to receive any interest/dividend on the securities and negotiate or transfer such securities as mentioned in the certificate. Thus all payments made to and by the certificate holder on behalf of the deceased person will be legally valid. However, this does not necessarily mean that the certificate holder is the owner of the securities or the legal heir. The legal heir/heirs are determined by a separate procedure of law.
Indian Succession Act, 1925 governs the procedure and has laid down the mandatory requirements for Succession Certificate. A Succession Certificate is issued by the District Judge. The relevant judge is from the court that has jurisdiction in the District Judge where the deceased person ordinarily resided. Where no such place is available, the jurisdiction within which any property belonging to the deceased may be found.
The legal heirs of the deceased must file an affidavit petitioning their claim to the property. The petition is to be made to the District Judge. It needs to be signed and verified by the Applicant. It must include the following details:
If you are wondering how to get succession certificate, follow the given procedure to obtain the same:
The procedure after the Petition has been submitted to the District Judge of the District Judge :
Step 1: The Petition is submitted along with court fees. The Court Fees Act, 1870, prescribes a specific percentage of the value of the estate. This is to be paid in the form of judicial stamp papers. This fee varies from State to State, in India.
Step 2: The Judge will inspect the application. And make it public by issuing a notice. And send a notice to all the Respondents. The notice calls for objections, if any, to issue a succession certificate. It generally provides a period of 45 days to protest, with necessary documentary proofs. After 45 days are over, he will fix a date for the hearing.
Step 3: At the date of the hearing, the judge will decide if the applicant is within his right to apply. If satisfied, he shall grant the certificate. The certificate would specify the debts and securities set forth in the application. It will mention the powers granted to receive interest/dividend or to negotiate/transfer/both.
Step 4: The Judge may also require the Applicant to sign an Indemnity Bond to secure the entitled persons. This Bond may also require a Surety or some other security. That will ensure no possible loss arises out of the use or misuse of such certificate.
The succession certificate is valid throughout India. For a resident of a foreign country, a certificate may be granted. Provided it has been approved by an Indian representative, accredited to that State (as appointed by the government) of such foreign country. And it must be stamped in accordance with the Court Fees Act 1870 to have the same effect in India.
An adult person of sound mind and having an interest in the estate of the deceased can apply. The interest may be in the form of a relative of the deceased, a person having a beneficial interest in the debt of the security etc.
The applicant cannot be a minor. However, the succession certificate can be granted to a minor through a guardian.
When more than one application has been filed, the judge will decide whom to issue the certificate. He will take into consideration, the interests presented by the applicants. The reasons provided and the supportive documents would be considered.
As per Section 376, the Succession Certificate can be extended for any debt or security not originally specified. If such extension/amendment is ordered, it shall have the same effect as the original certificate. The District Judge would extend, on an application by the holder/grantee and not of any other person.
The Grantee has the right to:
The Succession Certificate affirms that there has been no will. And denotes the legal heirs of the deceased. The beneficiary will, additionally, carry with him the full responsibility and liability of honouring any debt or security attached to that particular property.
Sometimes, the bank only asks for it in case another legal heir is contesting the nominees claim. On the other hand, if the matter goes to the court, it will be necessary. It isn’t the aptest document in case of properties. For this, a letter of administration would be required. A letter of administration is an explicit document granting a person the authority to administer the property of the deceased. The procedure to get this document is the same as the procedure for getting the succession certificate.
| Succession Certificate | Legal Heirs Certificate | |
| Applicability | It gives authority to obtain the debts and securities of the deceased when a Will has not been drawn. | To have a claim to the estate of the deceased, as a legal heir |
| Relationship | Relationship of the Petitioner to the deceased | List of all the legal heirs of the deceased. |
| Purpose | (a) To establish the authority of the Petitioner to inherit debts and securities of the deceased. (b) To provide protection to parties paying debts | Identifying and establish living heirs of a deceased person |
| Effect | The grantee may not be the beneficiary of the estate of the deceased | The holder has entitlement to the estate. |
| Assets | Only for movable properties of the deceased. | Applicable for all properties of the deceased. |
| Issuing Authority | It is issued by a Civil Court of the High Court | Issued by the Revenue Office of the High Court to identify a particular deceased person’s living heirs. |
| Contents | A list of all debts and securities sought. | You can avoid mentioning the details of the properties, for applying this certificate. |
A Succession Certificate is necessary, but may not be always sufficient, to release the assets of the deceased.
The essential purpose of this certificate has been to provide protection to all parties paying debts. When these payments have been made in good faith. The grantee also has powers to receive any interest/dividend on the securities and negotiate or transfer them. Thus any payments made to and by the grantee on behalf of the deceased person are legally valid.
Legal provisions relating to succession of property is a very nuanced subject and if you need help, speak to a competent legal professional. Taking professional assistance will help you gain knowledge about what is a succession certificate, how to get one and the various methods to effectively use the same. Hence, act as per your requirements.