2020 (10) TMI 335 - Tri - Companies Law

Direction to Respondent's Company to issue a share certificate - transfer of interest on the basis of will - Whether a person can transfer any interest on the basis of Will or not? - HELD THAT - Section 213(1) of Indian Succession Act says that no right as executor or legatee can be established in any court of justice unless a Court of competent jurisdiction in India has granted probate of the Will under which the right is claimed, but sub-section 2 of the Section 213 says that this section is not applicable in case of a Will made by the Mohammadans and shall applicable only in the case of Will made by Hindu, Buddhist, Sikh or Jain, where such Wills are of the class specified in Clause (a) and (b) or Section 57 of Indian Succession Act. Territorial Jurisdiction - HELD THAT - Decision of the Hon'ble Madras High Court upon which the Learned Counsel appearing for the Petitioner placed reliance is considered, and it is found that Hon'ble Madras High Court in a case P. Ranganathan and Others Vs. Sai Jagannathan and Others 1995 (8) TMI 339 - MADRAS HIGH COURT considered the territorial jurisdiction of Saidapet and held that the property situated in Saidapet is outside the original territorial jurisdiction of the Madras High Court - in the light of that decision when we shall consider the case in hand then we find that here in the case in hand also the property is situated in Saidapet, which according to the decision of the Hon'ble Madras High Court is outside the original territorial jurisdiction of the Madras High Court. Therefore, a combined reading of Sections 213 and 57 of the Act would show that where the parties to the Will are Hindus or the properties in dispute are not in territories falling u/s 57(a) and (b), Sub-section (2) of Section 213 of the Act applies and Sub-section (1) Section 213 of Indian Succession Act has no application. As a consequence, a Probate will not be required to be obtained in respect of a Will made outside those territories - Section 213(1) of the Indian Succession Act is not applicable, it is not necessary to grant a probate of the Will. Thus, since the will is executed outside the original territorial jurisdiction of the Madras High Court, therefore, Section 57(a) of the Indian Succession Act read with Section 213(2) of the Indian Succession Act, it is not required to grant a probate, hence even if the Probate is not granted, a person can transfer any interest on the basis of Will. Hence, the question is decided in affirmative - main case is listed for final hearing on 03.07.2020.

Summary

Issues:
- Whether a person can transfer any interest on the basis of a Will executed outside the original territorial jurisdiction of the Madras High Court?

Analysis:

Issue 1: Validity of transfer based on a Will outside jurisdiction
The applicant sought a direction for the Respondent's Company to issue a share certificate based on a Will executed outside the territorial jurisdiction of the Madras High Court. The key question raised was whether a person can transfer any interest on the basis of a Will executed outside the original jurisdiction. The Learned Counsel contended that Section 213 of the Indian Succession Act requires probate of a Will for establishing rights, subject to exceptions. The Counsel referenced legal precedents to support the argument that if the property is outside the territorial jurisdiction, Section 213(2) applies. The Tribunal examined the provisions of Section 57 and Section 213 of the Indian Succession Act to determine the applicability of probate requirements.

Issue 2: Interpretation of relevant legal provisions
The Tribunal analyzed the provisions of Section 57 and Section 213 of the Indian Succession Act in detail. Section 213(1) mandates probate for establishing rights as an executor or legatee, with exceptions for certain categories like Muhammadans. Section 213(2) specifies the applicability of the section to Hindus, Buddhists, Sikhs, or Jains under specific conditions. The Tribunal also considered Section 57(a) and (b) which outline restrictions and modifications regarding Wills made by Hindus, Buddhists, Sikhs, or Jains within specific territories and limits.

Issue 3: Precedents and legal interpretations
The Tribunal referred to legal precedents, including the case of Clarence Pais Vs. Union of India, where the Supreme Court clarified the application of Sections 213 and 57. The Court held that for Wills made by Hindus or properties outside specified territories, Section 213(2) applies, eliminating the need for probate in certain cases. The Tribunal also cited a decision of the Madras High Court regarding the territorial jurisdiction of Saidapet, emphasizing that properties in Saidapet fall outside the original jurisdiction of the Madras High Court.

Conclusion:
After thorough examination of legal provisions, precedents, and arguments presented, the Tribunal concluded that Section 213(1) of the Indian Succession Act did not apply in the case of a Will executed outside the original territorial jurisdiction. Therefore, the Tribunal held that probate was not required for the transfer of interest based on the Will in question. The decision affirmed that even without probate, a person could transfer interest as per the Will. The main case was scheduled for final hearing on a specified date.