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Succession certificate: What an NRI needs to know

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Importance of a succession certificate
Applying for a succession certificate
Revocation of a succession certificate

The below content is purely for informational purposes and is not intended to constitute advisory of any kind. Please note, these are in-depth articles which are best viewed on large screen devices like laptops, desktops and tablets. The position reflected in this article has been updated as of December 15, 2024

Inheriting assets in India as a Non-Resident Indian (NRI) can be challenging. This article explores the critical role of a succession certificate, its importance in managing the inherited assets and the process for obtaining one.

What is a succession certificate?

When any person dies intestate i.e., they pass away without making a Will or a testament in relation to his/her property and assets, a succession certificate is a crucial document through which the legal heirs may claim a right over the debts and securities of the deceased person.

The Indian Succession Act, 1925, defines the term ‘securities’ to include:

Any stock or debenture of/or share in a company or other incorporated institution,
Any promissory note, debenture, stock or other security of the Central Government or of State Government

Debt, under the same Act, has been defined to include any debt or debts due to the deceased creditor or in respect of portions thereof.

Succession certificate vs. legal heir certificate

In common parlance, terms such as succession certificate, legal heir certificate, survival certificate and other nomenclature are used interchangeably. However, one must keep in mind that while succession certificate finds genesis in the Indian Succession Act, 1925, primarily dealing with debts and securities, the requirement of legal heir or survival certificates and their usability may vary from state to state in India.

For instance, the Bombay Regulation VIII of 1827, applicable for the state of Maharashtra provides that if an heir, executor or administrator is desirous of having his right formally recognised by the Court, for the purpose of rendering it more safe for persons in possession of, or indebted to, the estate to acknowledge and deal with him, may apply for a heirship certificate, executorship or administratorship. The state legislation provides that the primary use of the legal heir certificate is to have a person recognised as heir, executor or administrator of the deceased.
On the other hand, in the state of Delhi, a surviving member certificate is issued to an applicant by the Revenue Department, Government of NCT of Delhi. In certain states like Andhra Pradesh, if the deceased person was a government employee, then the family membership certificate/legal heir certificate would be necessary for transfer of pension, gratuity, provident fund, etc.^# Please get in touch with a legal expert for more details.
While often used interchangeably, a succession certificate is different from a legal heir certificate. In the case of Venkatachalam vs The Tahsildar^***, the Madras High Court held thata legal heirship certificate issued by a Tahsildar cannot be equated to a succession certificate issued by a Court under Part X of the Indian Succession Act, 1925, in respect of the debt or securities.

Key differences between succession and legal heir certificate

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Particulars	Succession certificate	Legal heir certificate
Legislation and purpose	A succession certificate is issued under the Indian Succession Act, 1925, with respect to any debt or security of the deceased person.	A legal heir certificate is usually issued to identify the heirs of the deceased person and is issued pursuant to the relevant State and other applicable legislation, rules and regulations.
Issuing authority	District judge which is defined under the Indian Succession Act, 1925, as judge of a principal civil court of original jurisdiction.	Depending on the legislation of the relevant State, purpose and other factors, this is obtained from the local government bodies like the revenue departments, municipal corporation office, Taluk Tahsildhar, etc.
Use	This certificate is used for collecting the debts or security on behalf of the deceased person.	In practice, this certificate is usually requested in connection with pension benefits, provident fund, bank accounts, etc. as well as non-financial affairs like transferring phone and electricity connections, employee benefits, insurances, etc.

** While this broadly highlights the differences, this should not be used as legal opinion on the matters pertaining to these certificates, and it is advisable that proper legal advice be sought on the certification requirement depending on the nature of transaction, purpose of use, and assets involved. *** 2022 LiveLaw (Mad) 265

How to obtain a succession certificate?

The broad process for obtaining a succession certificate is outlined in the table below:

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Petition before District Judge	Application for a succession certificate must be made before the judge of a principal civil court of original jurisdiction. The petition should capture the following key information: Time of death of the deceased; 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); Details of family or other near relatives of the deceased and their respective residences; The right in which the applicant is claiming; Details of the debts and securities in respect of which the certificate is being applied for. Section 372 of the Indian Succession Act, 1925
Filing the petition	The petition would require to be filed with the District Judge within whose jurisdiction the deceased person ordinarily resided at the time of his or her death or, If at that time he or she had no fixed place of residence, the District Judge within whose jurisdiction any part of the property of the deceased may be found.
Validity	The succession certificate once issued is valid throughout India.

Petition before District Judge

Application for a succession certificate must be made before the judge of a principal civil court of original jurisdiction. The petition should capture the following key information*:

Time of death of the deceased;
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);
Details of family or other near relatives of the deceased and their respective residences;
The right in which the applicant is claiming;
Details of the debts and securities in respect of which the certificate is being applied for.

*Section 372 of the Indian Succession Act, 1925

Filing the petition

The petition would require to be filed with the District Judge within whose jurisdiction the deceased person ordinarily resided at the time of his or her death or,
If at that time he or she had no fixed place of residence, the District Judge within whose jurisdiction any part of the property of the deceased may be found.

Validity

The succession certificate once issued is valid throughout India.

Given the complexities involved, it is recommended to seek assistance from the local lawyer in obtaining the aforesaid certificates.

When can a succession certificate be revoked?

As per the Indian Succession Act, 1925, a succession certificate granted can be revoked for any of the following reasons:

The proceedings to obtain the certificate were defective in substance;
The certificate was obtained fraudulently by the making of a false suggestion, or by the concealment from the Court of something material to the case;
The certificate was obtained by means of an untrue allegation of a fact essential in point of law to justify the grant thereof, though such allegation was made in ignorance or inadvertently;
The certificate becomes useless and inoperative through circumstances; and
A decree or order made by a competent Court in a suit or other proceeding in relation to debts or securities specified in the certificate renders it proper that the certificate should be revoked.

An appeal can be preferred before the High Court from an order of a District Judge granting, refusing or revoking a certificate under the Indian Succession Act, 1925 and the High Court may, if it thinks fit, by its order on the appeal, declare the person to whom the certificate should be granted and direct the District Judge, on application being mad therefore, to grant it accordingly, in supersession of the certificate, if any, already granted. Please get in touch with a legal expert for more details.

Conclusion

NRIs may obtain succession certificate that can help them with their inheritance claims in India. While succession certificate can be used to claim inheritance rights for debts or securities when any person dies intestate, a legal heir certificate can be used for claiming inheritance benefits related to provident fund, bank accounts, transferring phone and electricity connections, etc. The process for applying a succession certificate is straightforward but needs to be executed carefully. Any errors or omissions can lead to revocation of the certificate. To gain more clarity on the succession and legal certificates, get in touch with your legal advisor.

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Frequently Asked Questions

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What is a petition?

Petition is the application filed before a court in accordance with the applicable laws to seek a remedy from the court. A petition usually includes the facts of the underlying matter, relief sought from the court, supporting documents and other additional documents as may be prescribed.

In the event the succession certificate is revoked, what are the consequences?

The Indian Succession Act, 1925, provides that in the event the succession certificate is revoked, all payments made or dealings undertaken, as regards debts and securities specified in the superseded or invalid certificate, to or with the holder of that certificate in ignorance of its supersession or invalidity, would be held good against claims under any other certificate.

What could be the challenges faced in obtaining these certificates?

As part of obtaining these certificates, incorrect, improper or incomplete documentation and information being provided to the authorities could lead to delay or rejection of application.

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Disclaimer:

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