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Thursday, October 31, 2013

Succession Certificate for immovable properties


Succession Certificate is a document issued by a competent court (civil) certifying a rightful person to be the successor of a deceased person. This certificate authorizes successor(s) to realize debts and securities of the deceased person. Issuance of succession certificate does not give “right of succession to the claimed property” of a deceased person, because it does not determine the right, title and interest of the deceased person to a particular property or entire property. However successor(s) of intestate deceased person is/are entitled to inherit the deceased person’s property (ies).

As per section 370 of Indian Succession Act, 1925 when the deceased person has left a validly executed “Will”, the entire estate of the deceased person under that “will” vests in executor of the will and in such cases “Succession Certificate” cannot be granted. In eligible cases the competent court to issue such certificate is the District court (Section 371 of the said Act) in whose jurisdiction the deceased person generally resided.

Obtaining the Succession certificate

For obtaining the certificate an application containing the full details of the deceased person, details of his other near relatives, details of debts and securities in respect of which the certificate is applied for and the right in which the petitioner claims to be issued the desired certificate.

After due process of law the certificate is issued and the rightful successor becomes eligible to collect / realize the debts and securities of the deceased person. Any creditor holding securities and liable to pay the debts, of the deceased person is fully discharged of his / her obligations if such debts and securities are duly paid to the successor(s) of the deceased person as mentioned in the certificate.

Revocation of the succession certificate

As per section 383 of the said act, a certificate so issued may be revoked for any of the following causes:-
  • Process for obtaining the certificate was defective.
  • Certificate was obtained fraudulently.
  • Certificate becomes useless and inoperative due to circumstances.
  • Decree or order of other competent court in dealing with the debts and securities of the same deceased person, renders it proper that the certificate is revoked.
  • Against an order of the District judge, in the matter of grant, refusal or revocation of certificate, a person may appeal to the appropriate High Court. 

Source : Common Floor, contributed by IndianPropertyLawyers

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