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

The Delhi High Court has held that imposition of a condition to furnish surety/security and indemnity bond is not required in every case seeking the grant of a succession certificate. (Arvind Nanda vs State).When an exemption from filing any surety is sought, court has to exercise its discretion depending on the facts of each case, in accordance with law, the Court has further ruled. .The order was passed by a Single Judge Bench of Justice Prathiba M Singh in a petition by one Arvind Nanda. .The Petitioner was the only heir of his deceased parents and had no siblings. He had approched the Civil Judge under Section 372 of the Indian Succession Act, 1925 seeking the grant of a succession certificate in his favour. .Pursuant to an order passed by the Civil Judge, the Petitioner submitted the court fee and the indemnity bond but sought an exemption from furnishing the surety bond. .The request seeking an exemption from furnishing the surety bond was rejected by the Trial Court. .Aggrieved by the rejection, the Petitioner moved the High Court..The Court observed that the prayer for exemption was rejected with the observation that just because the Petitioner was the sole beneficiary, the requirement of furnishing the surety bond could not be done away with..The Court, thereafter, perused Section 375 to state that imposition of a condition of security/surety/indemnity bond was done to indemnify person(s) or safeguard the interests of such persons who may be entitled to the whole or any part of the debt and security..Stating that such a condition could not be imposed in a mechanical manner, the Court opined, .However, the imposition of a condition is to be considered in the facts of each case. A condition cannot be mechanically insisted upon, especially in situations wherein the beneficiary is the sole beneficiary or in other suitable cases, if the beneficiary is a natural heir of the deceased and there are no objections by the other claimants.Delhi High Court.The Court also considered a series of caselaws on the issue and stated that the imposition of a condition for furnishing an indemnity/security was the discretion of the court.."In every case involving the grant of a succession certificate, a mechanical approach of imposing a condition for furnishing the surety/security and insisting on the indemnity bond is not required.", it said..It added that exemption pleas with respect to any surety have to be considered in light of the facts of each case. .When an exemption from filing any surety is sought, the Court has to consider the entire conspectus and exercise its discretion depending on the facts of each case, in accordance with law.Delhi High Court .Considering that the Petitioner was the sole legal heir and beneficiary of his parent’s estate and there were no objections from any quarter, the Court exempted the Petitioner from furnishing a surety..In view of the above, the petition was disposed of with a direction to issue the succession certificate expeditiously. .The Petitioner was represented by Advocates Ankur Mahindro, Ajay Shekhar, Ankush Satya..State was represented by Additional Standing Counsel Rishikesh Kr with Advocate Premsagar Pal..Read the Order: