Confusion in interpreting succession certificate
Venkat Iyer
(Querist) 18 July 2015
This query is : Resolved
Dear Sir,
Case:Holder 1 expired in 2010
Holder 2 expired in 2011
The Succession Certificate is applied in 2013 & received in 2014 in the name of Holder 1,missing Holder 2 who died year after.Company "A" has requested the legal heir to incorporate the Holder 2's name as the Holder 2 died after Holder 1.Theoritically, the company "A" may be correct in asking for incorporation of the Holder 2 name.
However,inview of the time lag in the court & the procedure being a cumbersome one is it a viable solution to approach the court to incorporate the name.
Alternatively,can the company "A" waive & condone the incorporation of missed names & process the Transmission of Shares based on relevant section or any judgement of any Court.
All other companies have transmitted the shares in the legal heir's name without any impedement.
Pl advice.
M V Gupta
(Expert) 19 July 2015
Deaths occurred faster than the issue of the succession certificate. The cert issued in 2014 has become futile as both the holders died by that time. Now the successors to the shares will be the children of Holder No.2. As such the suggestion made by the Company is not correct. You may have to file a fresh application for the certificate in favor of the children/wife of Holder No.2.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 19 July 2015
Agree with expert n add that
1) inform to co that both have died during pendency of receiving certificate
2) if court allow amend or file fresh suit for succession cert to deceases succeasors
Venkat Iyer
(Querist) 20 July 2015
Dear Sir,
The legal heir is the child of Holder 1 & Holder 2.Though the SC was applied after the death of both he parents n further the other 20 odd companies have accepted the SC & released the Shares duly transmitted in favour of the legal heir.I suppose that they would have also known these facts & based on some judgements or laws would have transmitted.In view I seek your guidance & candid view n opinion to resolve this issue.
M V Gupta
(Expert) 20 July 2015
Technically the issue raised by the Company is correct. On the basis of the certificate the Company can strike off the name of the First holder and transfer the shares in favor the successors as mentioned in the Sc, without deleting the name of the Second holder. Then the question will arise about deletion of the second holder's name. For this one course of action appears to be to produce an affidavit from the heirs of the second holder declaring the death of their father and produce the death certificate along with it and request he company to delete the name of the second holder. They may also give an indemnity to the Company. I feel there is no harm for the Company to accept the above and act.
Venkat Iyer
(Querist) 20 July 2015
Sir,
The claimant is the son of both the holders.The death certificates of both deceased were produced.
Can I take the benefit of Sec 381 of Indian Succession Act which reads as,
Effect of certificate.—Subject to the provisions of this Part, the certificate of the District Judge shall, with respect to the debts and securities specified therein, be conclusive as against the persons owing such debts or liable on such securities, and shall, not- withstanding any contravention of section 370, or other defect, afford full indemnity to all such persons as regards all payments made, or dealings had, in good faith in respect of such debts or securities to or with the person to whom the certificate was granted.
Pl advice.
Venkat Iyer
(Querist) 20 July 2015
Could you pl advice the draft for the indemnity.
M V Gupta
(Expert) 21 July 2015
Drafts are not provided on this site as it requires examination of all relevant docs. if u so desire you my contact me on my Mob 7498134906.
