Brother not ready to divide shares/stocks after parent's death
Arihant Kapoor
(Querist) 02 July 2013
This query is : Resolved
We are five siblings - 2 brothers and 3 sisters from a hindu family.
Our parents expired 14 years back.
Our father had shares of many companies in physical form.
Our elder brother has been holding back these original share certificates
with him for last 14 years.
HE is not agreeing to apply succession certificate jointly so as to get the shares transferred in the name of all the five successors.
He is rather adamant that we all have to sign an undertaking giving him full rights to get the shares transferred in his name and then he would divide them as per his choice, something that no one wants to do
because of his malafide intentions.
We have the list of companies, folio nos. etc.. but the original certificates
are being held by him , which he is not ready to show to any one of us.
Three of us - 2 sisters and 1 brother want to get our money / shares from him.
What are the options that we have? Pls. advise.
prabhakar singh
(Expert) 02 July 2013
All those who are in agreement should apply for Succession certificate making him opposite party telling that original certificates are in his custody.
Never sign any paper as per his demands.
Arihant Kapoor
(Querist) 02 July 2013
Dear Mr. Singh,
Thanks for your reply.
Kindly advise, what would be our stand / position if in court, he does not accept to be having the original certificates with him. Knowing his nature / intentions, we expect him to do so.
Also, pls. advise what is the proceedure and timeline to get a succession certificate.
Regards
Arihant
prabhakar singh
(Expert) 02 July 2013
Once he denies CUSTODY you may seek order from court directing co. to issue DUPLICATE
CERTIFICATES but by a separate suit.
A succession certificate is applied under Indian Succession Act 1925.Averments are made as per requirements of section 372.
Procedure is followed as laid in section 373.
To end your curiosity both of the provisions are being quoted below:
PART X: SUCCESSION CERTIFICATES
372. Application for certificate.- (1) Application for such a certificate shall be made to the District Judge by a petition signed and verified by or on behalf of the applicant in the manner prescribed by the Code of Civil Procedure, 1908, (5 of 1908.) for the signing and verification of a plaint by or on behalf of a plaintiff, and setting forth the following particulars, namely:--
(a) the time of the death of the deceased;
(b) the ordinary residence of the deceased at the time of his death and, if such residence was not within the local limits of the jurisdiction of the Judge to whom the application is made, then the property of the deceased within those limits;
(c) the family or other near relatives of the deceased and their respective residences;
(d) the right in which the petitioner claims;
(e) the absence of any impediment under section 370 or under any other provision of this Act or any other enactment, to the grant of the certificate or to the validity thereof if it were granted; and
(f) the debts and securities in respect of which the certificate is applied for.
(2) If the petition contains any averment which the person verifying it knows or believes to be false, or does not believe to be true, that person shall be deemed to have committed an offence under section 198 of the Indian Penal Code. (45 of 1860.)
(3) Application for such a certificate may be made in respect of any debt or debts due to the deceased creditor or in respect of portions thereof.
PROCEDURE
373. Procedure on application.- (1) If the District Judge is satisfied that there is ground for entertaining the application, he shall fix a day for the hearing thereof and cause notice of the application and of the day fixed for the hearing--
(a) to be served on any person to whom, in the opinion of the Judge, special notice of the application should be given, and
(b) to be posted on some conspicuous part of the court-house and published in such other manner, if any, as the Judge, subject to any rules made by the High Court in this behalf, thinks fit, and upon the day fixed, or as soon thereafter as may be practicable, shall proceed to decide in a summary manner the right to the certificate.
(2) When the Judge decides the right thereto to belong to the applicant, the Judge shall make an order for the grant of the certificate to him.
(3) If the Judge cannot decide the right to the certificate without determining questions of law or fact which seem to be too intricate and difficult for determination in a summary proceeding, he may nevertheless grant a certificate to the applicant if he appears to be the person having prima facie the best title thereto.
(4) When there are more applicants than one for a certificate, and it appears to the Judge that more than one of such applicants are interested in the estate of the deceased, the Judge may, in deciding to whom the certificate is to be granted, have regard to the extent of interest and the fitness in other respects of the applicants.
prabhakar singh
(Expert) 02 July 2013
BUT DO NOT FORGET TO ENGAGE A COMPETENT CIVIL LAW PRACTITIONER.
Raj Kumar Makkad
(Expert) 03 July 2013
Mr. Singh has rightly opined on the subject.
Rajendra K Goyal
(Expert) 03 July 2013
Agree with the expert prabhakar singh ji. nothing more to add.
Arihant Kapoor
(Querist) 09 July 2013
Thanks a lot Sir for your advice.
Arihant Kapoor
(Querist) 20 August 2013
Dear Sir,
Pls. advise on one more point.
If 5 applicants(siblings) jointly apply for the succession certificate, is it correct that the court would issue the certificate ONLY TO the ELDER son and ask him to divide the share/ wealth or will the court issue the succession certificate to all the five applicants giving them equal rights.
Regards
Arihant
Arihant Kapoor
(Querist) 25 January 2014
Dear Sir,
I would request you to kindly advise on one more point.
If 1 of the siblings (the elder son), in the above mentioned case, files a petition for the succession certificate asking the court to give the succession certificate to him,
Will the court issue the certificate ONLY to him and ask him to divide the share/ wealth to the other successors
or
Will the court issue the succession certificate to all the five applicants giving them equal rights.
Kindly advise.
Regards
Arihant
