Succession Certificate in India

This certificate also provides protection to all individuals who owe such debts or are liable for such securities by ensuring that all payments made to, or transactions conducted in good faith with a person who possesses the certificate are considered valid. Therefore, many organizations and individuals require a succession certificate before settling the debts or securities of the deceased in favour of the person claiming such debts or securities. 

To obtain a succession certificate, one must file a petition with the District Judge of the jurisdiction in which the deceased person resided at the time of their death. If the deceased person had no fixed place of residence at the time of their death, the petition must be filed with the District Judge of the jurisdiction in which any part of their property may be found. 

Succession Certificate for Property 

A competent civil court issues a succession certificate that certifies a rightful person as the successor of a deceased individual. This certificate authorizes the successor or successors to collect any outstanding debts or securities owed to the deceased person. However, it does not grant the right to claim the property of the deceased person because it does not determine their right, title, and interest to a particular property or the entire estate. Nevertheless, the successor or successors of an intestate deceased person are entitled to inherit their property or properties.

According to Section 370 of the Indian Succession Act, when the deceased person has left a validly executed will, the entire estate under that will vests in the executor, and a succession certificate cannot be granted. The competent court to issue such a certificate is the District Court, as per Section 371 of the said Act, in whose jurisdiction the deceased person usually resided. 

Applying For Succession Certificate For Movable Assets

A succession certificate is a crucial document issued by the court that allows the successors of a deceased individual to claim their movable properties. It is essential to seek proper advice while making and implementing this certificate. Typically, banks do not release funds or fixed deposits without this certificate, which is applied for movable assets like bank deposits and FDs.

If an individual dies intestate (without leaving a Will), the Civil Court can grant a succession certificate to release their debts and securities. This certificate establishes the legitimacy of the heirs and gives them the authority to transfer the deposits and other assets to their names. The applicable laws of inheritance issue this certificate upon an application filed by the beneficiaries in a relevant court of jurisdiction. 

The first step for any beneficiary is to file for a succession certificate in the same court within the jurisdiction where the deceased person resided to inherit their assets or get them transferred in their name. This certificate authenticates the petitioner and authorizes them to have the assets transferred to their name. However, the beneficiary also carries the responsibility and liability to honour any debt or security attached to that particular property. In all cases, the document is issued as per the applicable laws of inheritance for all applications made by a recipient to a court of competent jurisdiction. 

Can a Succession Certificate Be Used for Immovable Properties?

In this scenario, we encounter situations where legal heirs stake claim to the ownership and possession of a property. Property titles can be transferred through a systematic process of transfer, which can be based on a Will or the Law of Natural Succession, where class I legal heirs inherit the property. Transfer can also occur when the person is alive through a Gift Deed or through a partition. Once the transfer procedures are completed, the person gains complete ownership control, and our firm can assist with related services such as obtaining documents and facilitating future sales if required. 

Examples of situations where a succession certificate may be necessary include cases where an overseas citizen believes they have a claim to a piece of land, but a parent or uncle/aunt has died without leaving a Will, making it necessary to obtain proper documentation to assert a claim. Rules determine how the assets of the deceased are passed on to the heirs, but it can be challenging for individuals to understand how to obtain legal heir certificates, requiring appropriate advice on the matter. 

When applying for a succession certificate, the following information is typically required: the time of the deceased's death or a Death Certificate as proof, the deceased's place of residence, details of the family and other kin of the deceased and their residential addresses, proof of the applicant's right or capacity to be nominated as the successor, sufficient evidence that the asset does not fall under restrictive cases, and complete details of any debt or security attached to the property. 

Difference Between Succession Certificate & Legal Heir Certificate

1. The Legal Heir Certificate and Succession Certificate serve different purposes. The direct legal heir of a deceased person, such as a spouse, child, or parent, can obtain a Succession Certificate for various transactions like transferring utility connections, property tax payments, bank accounts, and filing tax returns. 
2. If the deceased was a government employee, a Legal Heir Certificate is required for claiming family pensions or appointments on compassionate grounds. It is also necessary for transferring movable and immovable assets. 
3. A Succession Certificate is necessary for inheriting any movable or immovable property under various property laws, with most falling under the Hindu Succession Act, community acts, or the Indian Succession Act. 
4. The Tahsildar of the district issues Legal Heir certificates to identify living heirs of the deceased, while the court issues Succession Certificates to legal heirs. 
5. Only the legal heir can apply for a Succession Certificate, while a Legal Heir Certificate can be obtained by the son, daughter, spouse, or parents of the deceased person. 

1. Documents required to obtain a Succession Certificate include the death certificate of the deceased, the place and time of death, and the name and relationship of all legal heirs. For a Legal Heir Certificate, one needs the original death certificate, identity card, ration card, and an affidavit worth Rs. 20 on stamp paper. 
2. The fee for a Succession Certificate is 3% of the total value of the property, while a Legal Heir Certificate requires Rs. 2 for a stamp and Rs. 20 for an affidavit stamp paper. 
3. Obtaining a Succession Certificate involves a newspaper notice for 45 days, and anyone can file objections during this time. The court will issue the certificate if there are no objections, which can take 5 to 7 months. A Legal Heir Certificate can be issued in 15 days to 30 days. 
4. A Succession Certificate is essential for transferring or possessing property, paying debts or securities, or collecting debts or securities on behalf of a deceased person. The Legal Heir Certificate is used for gratuity, pension, insurance, Provident Fund (PF), retirement claims, and other similar purposes. 

Petition for Succession Certificate

In order to obtain a succession certificate, a petition must be filed with the District Judge, who has jurisdiction over the area where the deceased person ordinarily resided at the time of their death or where any part of their property may be found if they had no fixed place of residence. The petition should include the following information: 

1. The time of death of the deceased. 

1. The residence or details of the properties of the deceased are within the jurisdiction of the District Judge. 
2. Details of the deceased's family or other close relatives. 
3. The rights of the petitioner. 
4. Confirmation that there are no impediments to the grant of the certificate. 

How the Court Grants a Succession Certificate

Upon receiving the petition, the District Judge may grant an opportunity for all relevant parties to be heard if necessary. After hearing from all parties, the Judge will determine whether the petitioner is entitled to the succession certificate. If the petitioner is found to be entitled, the Judge will pass an order for the grant of the certificate. This order will specify the debts and securities listed in the application and authorize the person named in the certificate to receive interest or dividends, negotiate or transfer securities, or both. 

Limitations on Succession Certificate

In certain cases, the court may require the petitioner of a succession certificate to provide a bond with one or more surety or any other security to ensure that they will account for the debts and securities received and indemnify any persons entitled to a share of them. 

Validity of Succession Certificate

A succession certificate is recognized throughout India. However, suppose it is issued in a foreign country by an accredited Indian representative. In that case, it must be stamped in accordance with the Court Fees Act 1870 to have the same effect as a certificate granted in India. The laws governing the inheritance of movable and immovable property in India vary depending on the applicable law, such as the Hindu Succession Act, Indian Succession Act, or community acts. 

Revocation of Succession Certificate

Section 383 of the relevant Act sets out the circumstances under which a succession certificate can be revoked, including a defective process for obtaining the certificate, fraudulent acquisition of the certificate, the certificate becoming useless due to circumstances, or a decree or order by another competent court dealing with the debts and securities of the same deceased person. In case of an order by the District Judge regarding the grant, refusal or revocation of the certificate, a person can appeal to the appropriate High Court. 

Note: The succession certificate confirms the identity of the legal heirs of the deceased and establishes the absence of a will. While this may be sufficient for the legal heirs to manage and transfer property, it may not be the most appropriate document in the case of properties. In such cases, a letter of administration may be required, which explicitly grants a person the power to administer the property of someone who has died without leaving a will. The process of acquiring a letter of administration is similar to that of obtaining a succession certificate.