Furnishing surety/ security, indemnity bond not required in every case seeking grant of a succession certificate

Kosha Doshi | Symbiosis Law School, Pune | 30th March 2020

Arvind Nanda v. State [CM (M) 265/2020 CM APPL. 7880/2020; High Court of Delhi]

Facts:

            The petitioner, Arvind Nanda who was the only heir of his deceased parents and had no siblings. Arvind had approached the Civil Judge under Section 372 of the Indian Succession, 1925 which sought granting of a succession certificate in his favor. After the order was passed by the Civil Judge, the petitioner, Arvind submitted the court fees and the indemnity bond. The same was sought as an exemption from furnishing the surety bond. A request seeking an exemption from furnishing the surety bond was rejected by the Trial Court. Arvind, the petitioner challenging the decision of the trial order approached the High Court. 

Issue:

            Whether that imposition of a condition to furnish security/ surety and indemnity bond is required for granting of a succession certificate?

Judgment:

            The Delhi High Court held that imposition of a condition to furnish security/ surety and indemnity bond is not required in each and every case which sought the grant of a succession certificate. When an exemption is sought from filing of any surety, the court needs to exercise its discretion depending on the facts and circumstances of each and every case which is in accordance with law. The case petition filed by Arvind Nanda was heard by a single bench judge, Justice Prathiba M Singh. An observation was made by the court that the prayer for exemption had been rejected with the observation that just because the petitioner, Arvind was the sole beneficiary and the requirement of furnishing the surety bond could not be done away with. 

            The court examined the Section 375 of the Indian Succession Act, 1925 to state that imposition of a condition of surety, security or an indemnity bond was done to indemnify persons or safeguard the interest of person who may be entitled to he whole or any particular part of the debt and security. The court stated that the same condition was not eligible to be imposed in a mechanical manner. A statement was made by the court that imposition of a condition to furnish security/ surety and indemnity bond is not required in each and every case which sought the grant of a succession certificate. The condition cannot be imposed in the direct mechanical manner as situations wherein the beneficiary is the sole beneficiary or in similar suitable cases, if the beneficiary is a natural heir of the deceased and no objections arise by other claimants. 

            A series of case laws were considered in deciding the following issues wherein it was stated that imposition of a condition for furnishing an indemnity/security was the discretion of the court. exemption pleas with respect to any surety have to be considered in light of the facts of each case. Keeping in mind that the petitioner, Arvind Nanda was the sole heir and beneficiary of his parent’s estate and there existed no objections from any quarter, the court allowed exemption to the petitioner from furnishing a surety. The petition was disposed of with a direction to issue the succession certificate expeditiously. The succession certificate is directed to be issued expeditiously within a period of eight weeks from today.