Thursday, 31 October 2019

Whether bank and firm holding debts and securities are necessary party in application for grant of succession certificate?

 After hearing learned counsel for the parties and perusing the record of the case, this Court is of the opinion that granting of succession certificate is a summary proceeding, the person holding debts and securities is not required to be impleaded. This is an established fact that SBI and the Company are mere custodians of the property of the petitioner's parents, and therefore, a law declaration of succession shall not be connected to them at all. At most after a lawful declaration of succession, the Bank and Company will have a legal obligation to hand over the assets to the valid successor. This proposition is also fortified by the judgment rendered by the Hon'ble Delhi High Court in the matter of Sushila Devi v. State & Ors. in CM(M) No. 985/2017, decided on 12.09.2017.

IN THE HIGH COURT OF RAJASTHAN

S.B. Civil Writ Petition No. 4796 of 2019

Decided On: 16.04.2019

 Aruna Derashri  Vs. Learned District Judge, Bhilwara (Raj.)

Hon'ble Judges/Coram:
Dr. Pushpendra Singh Bhati, J.

Citation: AIR 2019 Raj 137


1. Petitioner has preferred this writ petition claiming the following reliefs:-

"a) Writ petition of the petitioner may kindly be allowed with cost throughout and

b) Part of the impugned order by which order to implead firm and bank as a party respondent by the learned trial court below by order dated 07.02.2019 (Annexure P/2) passed by learned District Judge, Bhilwara, in Civil Misc. Case No. Nil/2019 (Aruna Derashri v, Public at large Bhilwara), may kindly be quashed and set aside.

c) During the pendency of this petition effect and operation of the impugned part of the order dated 07.02.2019 passed by learned District Judge, Bhilwara in Civil Misc. Case No. Nil (Aruna Derashri v. Public at large Bhilwara), may kindly be stayed and further be directed to register the case and be proceeded."

2. For the reasons stated by learned counsel for the petitioner, the defect pointed out by the office is overruled.

3. The limited prayer of learned counsel for the petitioner is that the petitioner has filed an application under Section 372 of the Indian Succession Act, 1925 against the public at large, Bhilwara before the learned trial Court, and the bone of contention includes certain fixed deposits in the State Bank of India, Branch Bhopalganj, Bhilwara and also certain shares of Reliance Industries and Super House Leathers Limited (erstwhile name Sharp Leathers Limited). The petitioner while requesting the Court that the SBI Branch concerned and the Reliance Industries and Super House Leathers Limited are not necessary parties in the summary proceedings under Section 372 of Indian Succession Act, 1925 was not allowed to proceed. Learned court below vide its impugned order dated 07.02.2019 has held that the Firm and the Bank are necessary parties and since making them as a party would not be detrimental to the interest of the petitioner, therefore, they may be impleaded as a party. The petitioner claims to be successor of his deceased parents, who were the holders of the shares of the SBI.

4. On such limited submission and there being no contesting respondent, the matter is finally heard at this stage.

5. After hearing learned counsel for the parties and perusing the record of the case, this Court is of the opinion that granting of succession certificate is a summary proceeding, the person holding debts and securities is not required to be impleaded. This is an established fact that SBI and the Company are mere custodians of the property of the petitioner's parents, and therefore, a law declaration of succession shall not be connected to them at all. At most after a lawful declaration of succession, the Bank and Company will have a legal obligation to hand over the assets to the valid successor. This proposition is also fortified by the judgment rendered by the Hon'ble Delhi High Court in the matter of Sushila Devi v. State & Ors. in CM(M) No. 985/2017, decided on 12.09.2017.

6. Accordingly, the present writ petition is allowed and the impugned judgment dated 07.02.2019 is quashed and set aside and the learned court below is directed to proceed with the proceeding under Section 372 of Indian Succession Act, 1925 without impleading State Bank of India and the Reliance Industries and Super House Leathers Limited as party respondents. Stay petition No. 4678/2019 stands disposed of accordingly.


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