Complete guide on Succession Certificate in India

When someone dies without leaving a will, a Succession Certificate is granted to their successors to establish the authenticity to the legal heirs. This certificate includes the whole lists of assets, debts and securities of the deceased who died intestate. Moreover, the date, time and place of the death of the deceased is also mentioned in this certificate. Assets such as Mutual Funds, Pension, Retirement benefits and insurance may be included in a succession certificate. Under the Indian Succession Act, 1925, Sections 380, 381 and 382 govern the granting of Succession Certificate. According to these provisions, the successor receives assets as well as inherits all the debts or loans to be paid. This ensures that that the heirs stake a claim to the assets of the deceased as well as that the debts released by the payer are protected under a certified person. 

In some situations, though the deceased has left a will but without any provision except for appointing their executor, it is understood that the deceased has died intestate with regards to the distribution of their property. Another instance where the deceased is subjected to have died intestate is when they have bequeathed their whole property for an illegitimate purpose.

Application for Succession Certificate

The issuance of a Succession Certificate is done by a district court under the Indian Succession Act, 1925. The judge can be from the place of jurisdiction where the deceased resided or if no such place is available, the jurisdiction of any place where the property of the deceased is found can be considered. 

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Following are the particulars that are required for applying for a Succession Certificate:

1. Copy of the death certificate of the deceased.

2. Time of death to be mentioned on the death certificate.

3. Residence of the deceased before death. If no address is found, the details of the property which falls within the jurisdiction where the petition is filed, can be given.

4. Name, address and the other details of the legal heir or family member or other relatives.

5. A ‘No Objection certificate’ (NOC) from the legal heirs except the petitioner.

6. If any legal heir wants to relinquish their rights over the estate, they can do so by declaring the same through an affidavit.

7. Name, address, occupation and copies of ration cards or passports of the petitioners.

8. The right of the petitioner to the estate is to be mentioned.

9. All the debts and securities.

10. If there is an absence of any reason to invalidate the grant of the certificate, a declaration for the same has to be issued.

Eligibility for applying

An adult person of sound mind who has an interest in the estate of the deceased in the form of a relative of the deceased or any beneficial interest in the debt of the security, can apply for the certificate. The person should not be a minor, except through a guardian. 

If there is more than one application for the certificate, the judge decides as to whom the certificate should be issued. The interests presented by the applicants as well as the reasons provided and the supportive documents are considered. 

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Procedure for the grant of Succession Certificate

1. A petition has to be submitted to the district judge of the High Court.

2. The court fees has to be submitted along with the petition. The amount of this court fees varies with the value of the estate. There is a prescription of a specific percentage of the value of the estate as the court fees under the Court Fees Act, 1870. Moreover, this fees varies from state to state and has to be paid in the form of judicial stamp papers.

3. After due inspection of the application, the Judge makes it public through an issuance of a notice in the national newspapers. A notice is sent to the respondents as well. Such a notice is issued to call for any objections to issue a succession certificate. A fair period of 45 days is provided to protest the issue of succession certificate with all the documentary proofs. A date of hearing is fixed after 45 days.

4. The judge delivers the decision on whether the applicant is within their right to apply on the date of hearing. If everything goes in the favor of the applicant, the judge grants the certificate which specifies all the debts and securities which were set forth in the application, as well as the powers granted in order to receive interest or dividend.

5. The applicant may also be required to sign an indemnity bond. This is done to secure the entitled persons and it may require a surety or another type of security so that no loss arises out of the use or misuse of the given certificate.

Succession Certificate for Immovable Property

Immovable property involves land or the benefits arising out of land or things attached to the earth and/ or permanently fastened to anything attached to earth but does not include grass or standing timber. Immovable property is generally the issue for contentions arising out of any succession, whether testate or intestate. However, only the letter of administration is required for succession of immovable property which can be obtained from a competent court. As far as Succession Certificate is concerned, it is required only to facilitate the collection of debt on succession or to provide protection to the parties who pay debts to the representatives of the deceased intestate. 

If we talk about nomination in the case of immovable property, the property does not vest in the name of the nominee to exclude all the other legal heirs. No other mode of succession can be opted for intestate succession to immovable assets. 

Succession certificate for Pension

When the deceased is a pensioner, the arrears of the pension are payable to the successor directly. A succession certificate for the payment of pension is required only when there are no eligible family members to receive the pension after the death of the deceased.

The author of this blog is Adv. Munish Malik having an experience of 5 years in handling Property related matters from his experience he wants to share this beneficial information for the individuals having any issues with respect to Property related matters.