Bank operation
lakshmi
(Querist) 12 June 2013
This query is : Resolved
My father, a small business man died in sudden road accident. I & my father is partner of the firm. According to deed only my father has right to sign the cheque. After his death I had decided to run the business by putting my only younger sister as another partner. But bank a/c of the firm cannot be operated as bank manager ask for legal heir certificate. He said only credits is allowed and no debits is allowed. our major problem now is our clients are asking for payment. I cannot take even single rupee from my father's account. my mother applied for Legal heir certificate by putting my name and my sister name as 1st & 2nd legal heirs and my father's mother as third legal heir. my grandfather had died b4 my father. my father has 2 brothers and 2 sisters. our grandmother demands heavy cash to put sign as legal heir. we cannot afford to provide that huge amount. so our legal heir certificate is delaying. If I got legal heir including her name & without her sign, whether bank account can be operated? please provide solution to my problem.
i like to add addtional info. that the firm was started b4 20 years by having my father & 2 of his friends as partner. a4 misunderstanding between them
the case was taken to court. judgement was in my father favour and firm was handed over to him to run it.final hearing is still pending.so my father registered new reconstituted deed by putting him and me as partner.there is a clause in deed that partnership is a general partnership and not at will. another clause state that a4 death of a partner the partnership will not be dissolved but carried on by another partner by putting legal heir of the deceased partner.so, now i have put reconstituted deed by putting my sister (one of the legal heir) as another partner.i also want to know whether for registering this new reconstituted deed legal heir certificate is necesssary?
Rajendra K Goyal
(Expert) 12 June 2013
You have not mentioned whether the account was in the name of partnership firm or in the individual name of your father. If it was partnership, partnership has come to an end after expiry of one partner. The assets of the firm belong to remaining partner and legal heir of the deceased partner jointly and not to the legal heirs of the deceased partner only. Debtors of the old firm need to be paid first.
Presently you can open new Bank account in the name of new firm and start transaction through this account till matter settled with the Bank.
Raj Kumar Makkad
(Expert) 12 June 2013
I strongly endorse the advice of Rajender G. You need not obtain the succession certificate in case the account of the firm was run through the signature of your father. This is very simple issue.
