If you are stuck in such a situation, here is what to do.

Mr. Alok found himself in a difficult position in the city of Ratanpur after the recent demise of his father, Mr. Verma. His father was the sole owner of a flat in the “Sunrise Apartments Co-operative Society,” which was mortgaged with “Capital Trust Bank.” After his father’s passing, Mr. Alok diligently repaid the entire outstanding home loan. However, when he approached the bank to collect the original property documents, they refused. The bank is insisting on a legal heir certificate or a succession certificate from a competent court, as Mr. Verma had not registered a nominee for the property or the loan account.

Feeling cornered, Mr. Alok consulted a few lawyers who estimated the cost to be between ₹50,000 and ₹70,000, with a timeline of nearly a year to secure the certificate through the courts. Seeking a faster solution, he spoke to his housing society, who directed him to a local property broker. This broker made a questionable claim that he could facilitate the transfer of the flat into Alok’s mother’s name directly through the registrar’s office using only copies of the property papers, bypassing the need for a court-issued certificate. This has left Mr. Alok confused and concerned about the legality and risks of such an approach.

Advice in such cases

The bank’s insistence on a legal heir or succession certificate is a standard and legally sound procedure. They are doing this to protect themselves from future litigation. Without a nominee, the bank has no official record of who the rightful successor is. Handing over valuable original property documents to a person without a court order could expose the bank to claims from other potential legal heirs who might surface later. The certificate provides the bank with legal indemnity.

The advice from the broker is extremely risky and likely illegal. Transferring property without original documents and without following the due process of law (succession) can lead to a fraudulent and void transaction. This could create severe title defects, making it impossible to sell or mortgage the property in the future, and could even lead to criminal charges. It is imperative to avoid such shortcuts.

Applicable Sections of Law

The primary law governing this situation is the Indian Succession Act, 1925. Specifically, Part X of the Act deals with the issuance of a Succession Certificate by a civil court, which formally establishes the right of the legal heirs to the deceased’s debts and securities.

While this is a civil matter, general procedural laws like the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, and the Code of Civil Procedure, 1908, lay down the procedural framework for court proceedings. The transfer of the flat’s ownership within the society will also be governed by the specific Co-operative Societies Act of the state.

If you are the complainant

As the person seeking the release of documents and transfer of property, you are the one who must initiate the legal process. Here are the steps to follow:

• Consult with Lawyer: The very basic and important step to start is to talk to a lawyer/advocate. You should not hesitate in paying his consultation fee, which might be in the range of Rs. 10,000 to Rs. 50,000, depending on the case. He is helping you in this situation to come out. He is an expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can navigate the process efficiently and ensure all paperwork is correctly filed, potentially resolving the matter faster than anticipated.
• File a Petition for Succession Certificate: This is the correct legal route. You must file a petition at the District Court that has jurisdiction over the property. The petition must include details of all legal heirs of the deceased.
• Obtain No Objection Certificates (NOCs): The process can be significantly expedited if all other legal heirs (e.g., your mother, siblings) provide affidavits or NOCs in your favour, stating they have no objection to the certificate being granted to you or jointly to all heirs.
• Engage with the Bank Formally: While pursuing the legal option, maintain a formal line of communication with the bank. Inform them in writing that you have initiated the process to obtain a succession certificate.

If you are the victim

In this context, the family is a victim of a procedural lapse (not appointing a nominee) which has led to a legal complication. To avoid becoming a victim of fraud, you must resist the temptation of illegal shortcuts offered by brokers or other agents. Following the broker’s advice could lead to the loss of money and, more importantly, jeopardise your legal rights to the property your father left behind. The only way to secure your inheritance is through the proper legal channels.

How the police behave in such cases

The police have no role in this matter as it is purely civil in nature. A dispute between legal heirs and a bank regarding the release of documents based on succession laws does not involve any criminal offence. The police will not intervene or assist you in getting the documents from the bank. You should not approach the police for this issue. Their involvement would only be warranted if a crime like forgery, cheating, or criminal breach of trust were to occur, for instance, if the broker absconded with your money after making false promises.

FAQs people normally have

What evidence is required?

To obtain a Succession Certificate from the court, you will typically need the following:

• The original death certificate of the deceased (your father, Mr. Verma).
• Proof of identity and residence for all legal heirs (e.g., Aadhaar card, voter ID).
• Documents proving the relationship between the deceased and the applicants (e.g., marriage certificate for the spouse, birth certificates for children).
• Complete details of the assets for which the certificate is needed (in this case, the property and the cleared loan account with Capital Trust Bank).
• A formal petition drafted by your lawyer.
• No Objection Certificates (NOCs) on affidavits from all other legal heirs, if they are not co-petitioners.

How long will the investigation take?

It is important to understand that this is a judicial process, not a police investigation. The time taken to obtain a Succession Certificate can vary significantly based on several factors:

The timeline of 6 to 12 months quoted by the lawyers is realistic. The process involves filing the petition, the court issuing a public notice in newspapers to invite any objections from the general public, hearings, and the final order. If no one contests the petition and all documents are in order, it might be resolved on the shorter end of this spectrum. If another party raises an objection, the case becomes a contested suit and can take much longer.

Advocate Sudhir Rao, Supreme Court of India