A Case study on Legal Heir Certificate – Share Transmission & IEPF Claim

Raj Kamal is one of our recent clients for the transmission of Shares inherited from his late father Shri. Dhayanand Kotecha and the shares have also moved to IEPF. When he came to our office we realized that his father’s shares are worth more than a crore. While discussing with him our services to assist him with transmission and IEPF. We believed that it would be a cakewalk to service his needs and that if we could complete the work diligently we may realize our service charges quickly.

Lets quickly see the case that has been detailed to us on day 1 of the meeting. Raj claimed that he would like to take ownership of his Dad’s shares through transmission and IEPF claim directly to his Demat account as his Mother Mrs.Shanthi Dhayanand and two Sisters Mrs.Rekha Shankar & Mrs.Sajna Choudary do not have any objection in him claiming the shares to himself.

As has been the practice, we have prepared our agreement to enter into a service agreement so as to start our work in preparing for the Transmission Process. However, it has been decided to a do bit of research on all the Share certificates we collected the basic KYC documents, copy of Legal Heir Certificate and copies of all the Share certificates which were in his possession.

The Revelation:

In this case, the Legal Heir document should be mentioned ideally the following persons as the Legal Heirs of Shri. Dhayanand Kotecha:

  1. Mrs.Shanthi Dhayanand (wife of Dhayanand)
  2. Mr.Raj Kamal (Son)
  3. Mrs.Rekha Shankar (daughter) &
  4. Mrs.Sajna Choudary (daughter)

Normally the total shares left by Mr.Dhayanand will be claimed and split to all the four Legal Heirs whereas, in this case since all the other 3 Legal heirs have consented for NOC (No Objection Certificate) in favor of Mr.Raj Kamal, he would have the rights to enjoy the entitlements.

While the back office team was ready to prepare the required documentation something new popped up. The Legal Heir Certificate actually reflected a 5th name to it. Yes, it contained Mrs.Sita Devi. On inquiry with Raj, it was found that the Legal heir certificate was obtained 12 years before itself after the first death anniversary of his Dad Mr.Dhayanand and Mrs.Sita Devi, being Mother to Mr.Dhayanand and was alive then is also one of the Legal heir and her name is also included.

Here is the real tricky situation! Since Mrs. Sita Devi’s demise was later to her Son, she would also have separate legal heirship under her.

Sita Devi’s Legal Heir’s:

Sita Devi and her husband had 7 children and currently, 4 had demised. These 4 Children has a total of 15 Children among them as detailed below

  1. Late Bharathi (3 Children)
  2. Late Kala (1 Child)
  3. Ms.Reema (Alive)
  4. Late Vijaya (8 Children)
  5. Shiyaram (Alive)
  6. Late Dhayanand (3 Children)
  7. Abhaya (Alive)

Since Mr.Dhayanand died intestate and his mother also being a Legal heir and beneficiary, on her demise all Legal heirs would also be beneficiary of Shares of limited to the share ration due to her (Sita Devi).

Thus, if in case Mr.Raj Kamal intends to enjoy the whole shares then legally either he has to obtain NOC from all 18 Legal heirs or part ⅕th of the total shares to be shared among other Legal heirs of his Grandmother.

Raj would come back with his decisions and concurrence from others.

Team SMB Enablers Pvt Ltd is a highly experienced team and would identify such legal challenges well in advance and thereby ensure quick turn around time in realizing every penny that is due to its clients.