Delhi District Court
Nipun Khanna vs State on 26 August, 2023
IN THE COURT OF SWATI GUPTA-I,
ACJ-CUM-ARC-CUM-CCJ,NDD, PHC, NEW DELHI
SUCCESSION CASE NO. 165/2022
Sh. Nipun Khanna
S/o Late Sh. Rakesh Khanna
R/o A-17, Anand Niketan
New Delhi-110021. ..... Petitioner
Versus
1. State ( NCT of Delhi)
2. Mrs. Renee Khanna
W/o Late Sh. Rakesh Khanna
R/o A-17, Anand Niketan
New Delhi-110021.
3. Mrs. Gayatri Sekhri
W/o Mr. Rohan Sekhri
D/o Late Sh. Rakesh Khanna
R/o F-56A, Radhey Mohan Drive
Chhattarpur, Delhi-110074. ..... Respondents
PETITION FOR GRANT OF SUCCESSION CERTIFICATE
UNDER SECTION 372 OF THE INDIAN SUCCESSION ACT, 1925
Date of institution of the petition : 01.12.2022
Arguments heard : 26.08.2023
Date of pronouncement of judgment : 26.08.2023
Final Judgment : Allowed.
JUDGMENT
1. Petitioner has applied for succession certificate under Section 372 of the Indian Succession Act, 1925 in respect of the shareholding of his deceased father Late Sh. Rakesh Khanna in the company Kay Dry Cleaners Pvt. Ltd. The details SC No. 165/2022 Page No. 1 of 6 Sh. Nipun Khanna vs State (NCT of Delhi) & Ors. of shareholding of his deceased father Late Sh. Rakesh Khanna is as follows:
SI. Particulars of shareholding No.
1. 580 Equity Shares of Kay Dry Cleaners Private Ltd. in Folio No.21, Distinctive Nos.0016-0065, 0071-0130, 0201- 0270, 0341-0350, 0351-0530, 0636-0845 held in the name of Sh. Rakesh Khanna.
2. It is stated in the petition that Late Sh. Rakesh Khanna at the time of his death was the owner of 50% shareholding in the company Kay Dry Cleaners Pvt. Ltd., holding 580 shares. As per petition, petitioner and respondent nos.2 & 3 are the only legal heirs of deceased. It is stated in the petition that pursuant to a family settlement, respondent nos.2 &3 have already executed a relinquishment deed dated 04.03.2022 relinquishing their rights in the abovementioned shareholding of Late Sh. Rakesh Khanna in favour of petitioner.
3. It is settled law that grant of succession certificate does not in any way amounts to deciding the title of the property in question and the succession certificate is granted for a limited purpose on the basis of prima facie title. The provision of Section 375 Indian Succession Act also ensures that the rightful claimant, if any, may be duly indemnified by the holder of succession certificate. Proceedings under the Indian Succession Act for grant of succession certificate are summary in nature and judgment can be passed, if the case of petitioner is admitted by other stakeholders viz. respondent/ other legal heirs/ bankers etc. holding debts & securities for the deceased.
SC No. 165/2022 Page No. 2 of 6Sh. Nipun Khanna vs State (NCT of Delhi) & Ors.
4. In the present case, summary proceedings have been conducted, witnesses examined and final arguments have been heard and record has been perused. Following material has come on record:-
(i) Notice of the petition was issued upon respondents, general public & SDM/EM. Notice of the petition was issued to general public by way of publication made in newspapers "Veer Arjun" and "The Statesman" both dated 24.12.2022 for inviting objections, if any, from general public. Despite publication, no objection to the grant of succession certificate in favour of petitioner was received from general public.
(ii) In response to notice, SDM report has been filed as per which Late Sh. Rakesh Khanna is survived by petitioner(son), respondent no.2 (wife) and respondent no.3 (daughter).
(iii) Pursuant to notice, respondent no. 2 appeared in person and gave statement on oath that she has no objection if succession certificate in the present case is granted in favour of petitioner. Her affidavit in this regard is Ex.RW2/1. In Ex.RW2/1, respondent no.2 also stated that vide registered relinquishment deed dated 04.03.2022, she and respondent no.3, being the legal heirs of Late Sh. Rakesh Khanna, have relinquished all their rights, title and interest in the said 580 shares of Late Sh. Rakesh Khanna in Kay Dry Cleaners Pvt. Ltd. in favour of petitioner.
Respondent no.3 appeared through video conferencing and stated that she has no objection if succession certificate in the present case is granted in favour of petitioner.
SC No. 165/2022 Page No. 3 of 6Sh. Nipun Khanna vs State (NCT of Delhi) & Ors.
(iv) In the petitioner's evidence, petitioner examined himself as PW1, tendered his affidavit as Ex.PW1/A and relied upon the following documents:
a) Copy of death certificate of his father -
Ex.PW1/1(OSR). As per the said document, Sh. Rakesh Khanna s/o Sh. Vishwa Nath Khanna and husband of Mrs. Renee Khanna died on 24.05.2021.
b) Copies of 6 Share certificates of Kay Dry Cleaners Pvt. Ltd. having Folio No.21, Distinctive Nos.0016-0065, 0071-0130, 0201-0270, 0341- 0350, 0351-0530, 0636-0845 - Ex.PW1/2(OSR). As per the said certificates, same were issued to Sh. Rakesh Khanna.
c) Annual returns of Kay Dry Cleaners Pvt. Ltd. - Ex.PW1/3. As per the said document, Sh. Rakesh Khanna was having 580 equity shares of said company being one of its Director.
d) Copy of relinquishment deed- Ex.PW1/4 (OSR). As per the said document, respondent nos.2 & 3 had relinquished their rights in the shareholding of Kay Dry Cleaners Pvt. Ltd. held in the name Late Sh. Rakesh Khanna, in favour of petitioner.
e) NOC of his mother and sister- Ex.RW2/1 (mentioned as Ex.PW1/5 in the affidavit) & Ex.PW1/6 respectively.
f) Copies of his aadhar card and of his mother and SC No. 165/2022 Page No. 4 of 6 Sh. Nipun Khanna vs State (NCT of Delhi) & Ors.
sister - Mark A (colly.). As per Mark A(Colly.), aadhar cards were issued to petitioner Sh. Nipun Khanna s/o Sh. Rakesh Khanna, respondent no.2 Mrs. Renee Khanna w/o Sh. Rakesh Khanna and respondent no.3 Mrs. Gayatri Sekhri w/o Sh. Ronak Sekhri respectively.
5. Ld. Counsel for petitioner has filed CA certified valuation certificate as per which total value of 580 fully paid up equity shares of M/s Kay Dry Cleaners Pvt. Ltd. @ Rs.25,955/- per share, i.e. total value of 580 shares is Rs.1,50,53,900/-.
6. During the course of proceedings, Ld. Counsel for petitioner also made a statement that Smt. Brij Rani Khanna, mother of deceased had expired on 08.07.2013.
7. In view of above material on record, I find that there is no impediment to the grant of succession certificate in favour of petitioner (Class-I legal heir/ son of deceased Late Sh. Rakesh Khanna) for transmission/receiving the aforesaid debts / securities (including dividend, ancillary benefits, interest, if any) held in the name of deceased Late Sh. Rakesh Khanna, details whereof are as follows:
SI. Particulars of shareholding Amount No.
1. 580 Equity Shares of Kay Dry Cleaners Rs.1,50,53,900/-.
Private Ltd. in Folio No.21, Distinctive Nos.0016-0065, 0071-0130, 0201-0270, 0341-0350, 0351-0530, 0636-0845 held in the name of Sh. Rakesh Khanna.
SC No. 165/2022 Page No. 5 of 6Sh. Nipun Khanna vs State (NCT of Delhi) & Ors.
8. Consequently, the present petition is allowed and succession certificate be issued to petitioner for transmission/receiving the aforesaid debts/securities, on filing of requisite Court Fees of Rs.301078/- only in terms of Article 12, Schedule I of the Court Fee Act, 1870 as applicable to Delhi along with an indemnity bond of the petitioner in the sum of Rs.1,50,53,900/-. Since the petitioner is the Class-I legal heir of the deceased and the other surviving member of the deceased i.e. respondent nos.2 & 3 have already given NOC, the condition of furnishing surety bond in the present case is waived.
9. File be consigned to Record Room after due compliance.
Announced in the open (SWATI GUPTA-I) court on 26.08.2023. ACJ/CCJ/ARC, NDD, PHC NEW DELHI : 26.08.2023 SC No. 165/2022 Page No. 6 of 6 Sh. Nipun Khanna vs State (NCT of Delhi) & Ors.