P.K. Balasubramanyan, J.
1. Heard counsel for the petitioners and counsel for the official liquidator.
2. The prayer in this application is for the issue of a direction to the official liquidator to issue a cheque for the amount of Rs. 8,136 sanctioned as dividend to one Unniyankutty on a claim made by one Viyyumma the first petitioner. Learned counsel for the liquidator points out that this is a debt due to the deceased and unless a succession certificate or a certificate from the Administrator-General is produced, the amount cannot be disbursed. Learned counsel for the petitioners submits that a certificate from the Tahsildar, the competent authority, has been produced certifying the fact that the applicants are the wife and children of the deceased and in the light of that certificate, there is ample power in this court under Section 555(7) of the Companies Act to disburse the amount even without insistence on production of a succession certificate or a certificate from the Administrator-General.
3. Obviously, this is a debt due to the deceased which is claimed by his representatives. Section 214 of the Indian Succession Act is clearly attracted. That section clearly provides that a succession certificate has to be produced to establish representation. There has also to be a determination that this is a debt due to the deceased or to the estate of the deceased within the meaning of Section 214 of the Indian Succession Act. The certificate given by the Tahsildar is at best a certificate to the effect that the claimants are the wife and children of the deceased. That cannot be a substitute for a succession certificate or a certificate from the Administrator-General. The other alternative is for this court to conduct an enquiry into the question whether the applicants before this court are representatives of the deceased who are entitled to receive the money. I think that an enquiry by this court is not very practicable. Moreover, the Indian Succession Act and the Rules framed thereunder provide for a procedure to be followed before the issuance of a succession certificate so as to ensure that the representation is given only to the duly qualified person after hearing objections if any received in that behalf. There is no warrant for by passing such procedural safeguards made under the Indian Succession Act. It is also seen from Rule 280 of the Companies (Court) Rules that a power is given to the official liquidator if he is satisfied about the capacity of the person making the application, to disburse the amount below Rs. 500 without insistence on production of a succession certificate with the permission of the company court. This also indicates that the proper course to adopt is to insist on the production of a succession certificate, or a certificate from the Administrator-General in appropriate cases, before orders are made for payment out of amounts due to the deceased. I think that this is also the course of prudence. I am, therefore, of the view that the prayer in this application cannot be allowed. The only direction that can be issued to the liquidator is the one to pay out the amounts to the applicants on their producing a succession certificate in terms of Section 214 of the Indian Succession Act or if permissible a certificate from the Administrator-General under the relevant Act. This application is ordered in the above manner.