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URGENT succession act sec 372

Priya Sharma (Company Secretary & Student.MBA) (998 Points)

20 January 2011

Under the provisions of section 372 of the Succession Act, petition has been filed by the respondents which are the body corporates against our Company and the Company has been asked to appear before the court for hearing.
My question is the act does not say that pleader has to appear before the court and secondly whether section 372 applies to body corporates also as section speaks in tersm of the deceased individual only.

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CA CMA CS Ram Pavan Kumar Melam (CA) (6980 Points)
Replied 21 January 2011

As per sub-section (1) of section 372 it is mentioned that “Application for such a certificate shall be made to the District Judge by a petition signed and verified by or on behalf of the applicant in the manner prescribed by the Code of Civil Procedure, 1908, (5 of 1908.) for the signing and verification of a plaint by or on behalf of a plaintiff, ……..”

Hence, an advocate may be appointed on behalf of the applicant and file a petition. The rules of petition / plaint are governed by CPC, 1908 and not ISA, 1925.

Regarding applicability of succession to a company, the main feature of the company form of business is its eternity. There is no death to the company, though its members or directors may die in between. Within the life of the company there may be several successors in the management of the company.

You may please specify for what purpose the respondents which are the body corporates filed petition against your Company for succession certificate.