Sections 374-375 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When a District Judge grants a succession certificate, what must it say, and what can the holder do with the securities it lists? And may the Judge ask the grantee for a bond? Sections 374 and 375 answer. This article explains them, as per the text of the Act consulted.
A certificate specifies the debts and securities set forth in the application, and the Judge may empower the grantee to receive interest or dividends on the securities, to negotiate or transfer them, or both (s.374). The Judge shall require, as a condition precedent to the grant, a bond with one or more sureties, or other sufficient security, for rendering an account and for indemnity, where he proposes to proceed under s.373(3) or (4), and may do so in any other case (s.375(1)). The Judge may assign the bond to a proper person, who sues on it as trustee for all persons interested (s.375(2)).
Section 374: what the certificate says
When the District Judge grants a certificate, he shall therein specify the debts and securities set forth in the application for the certificate. The petition sets them out under particular (f) of s.372(1) (see our article on sections 371 and 372).
The Judge "may thereby empower the person to whom the certificate is granted":
- (a) to receive interest or dividends on the securities, or
- (b) to negotiate or transfer them, or
- (c) both to receive interest or dividends on, and to negotiate or transfer, the securities or any of them.
Two points follow from the words. First, the listing of debts and securities is mandatory ("shall"), while the powers over securities are discretionary ("may"). Second, the powers apply to the securities; the text does not say that a power to negotiate or transfer is given for the debts.
"Securities" in Part X means the five kinds in s.370(2), which include company shares and debentures (see our article on section 370). A certificate that empowers the holder to receive dividends on shares is therefore within the words of s.374. How a company or depository acts on such a certificate is outside the text consulted; our guide on how to transmit shares on the death of a shareholder explains the company-law process.
If you are a family member holding shares or securities of a deceased person and wish to understand what powers a certificate can carry, a short legal consultation can help you read the certificate against s.374.
A fresh example
Mrs. Bose's certificate, granted by the District Judge, lists a Government promissory note, 200 shares in a company, and a fixed debt owed by a trader. The Judge empowers her under clause (c) to receive interest or dividends on, and to negotiate or transfer, the promissory note and the shares. The certificate does not give her those powers over any security not listed, and the powers in s.374 are expressed for securities. If the Judge had empowered her only to receive dividends (clause (a)), s.378 would let him later amend the certificate to confer other powers (see our article on sections 376 to 379).
Section 375(1): security from the grantee
The District Judge:
- shall, in any case in which he proposes to proceed under sub-section (3) or sub-section (4) of section 373, and
- may, in any other case,
require, as a condition precedent to the granting of a certificate, that the person to whom he proposes to make the grant shall give to the Judge a bond "with one more surety or sureties, or other sufficient security", for:
- rendering an account of debts and securities received by him; and
- indemnity of persons who may be entitled to the whole or any part of those debts and securities.
The copy prints "one more surety" where "one or more" seems meant; this is a printing slip and the sense is "one or more surety or sureties". Sub-sections (3) and (4) of s.373 are the intricate-questions case and the several-applicants case (see our article on section 373). So the bond is compulsory in those two cases, and optional in every other.
The text prints no amount for the bond or the security, and none is stated here.
Section 375(2): assignment
The Judge may, on application made by petition and on cause shown to his satisfaction, and upon such terms as to security, or providing that the money received be paid into Court, or otherwise, as he thinks fit, assign the bond or other security to some proper person. That person shall thereupon be entitled to:
- sue on it in his own name, as if it had been originally given to him instead of to the Judge; and
- recover, as trustee for all persons interested, such amount as may be recoverable under it.
This follows the same pattern as the assignment of an administration bond in s.292, explained in our article on sections 291 and 292. The difference is that s.375(2) speaks of "cause shown to his satisfaction", while s.292 speaks of the Court being satisfied that the engagement of the bond has not been kept.
| Section | Point | Rule |
|---|---|---|
| 374 | Content | Specify the debts and securities set forth in the application |
| 374 | Powers over securities | May empower to receive interest or dividends, to negotiate or transfer, or both |
| 375(1) | Bond or security | Shall (in s.373(3) or (4) cases) or may (other cases) be required before grant; for account and indemnity |
| 375(2) | Assignment | On petition and cause shown; assignee sues in own name and recovers as trustee for all persons interested |
Practical points
- Check the powers on the face of the certificate. The Judge may confer receiving powers, transfer powers or both; the certificate shows which.
- Expect a bond in intricate or multi-applicant cases. The Act says "shall" there.
- The bond has two purposes. An account of what is received, and indemnity of persons entitled.
- Later extension. A holder may later apply for an extension to further debts or securities (s.376).
Later amendments are not shown in the text consulted and should be checked.
Need help with a certificate or its bond?
If you are applying for a certificate and expect to be asked for a bond, or you hold one and need to understand its powers, we can explain the Act and help you plan. Start with our legal consultation service.
Key takeaways
- A certificate specifies the debts and securities set forth in the application (s.374).
- The Judge may empower the holder to receive interest or dividends, to negotiate or transfer, or both, in respect of the securities (s.374).
- A bond with sureties or other sufficient security is required as a condition precedent in the s.373(3) and (4) cases, and may be required in other cases (s.375(1)).
- The bond may be assigned on petition; the assignee sues in his own name as trustee for all persons interested (s.375(2)).
Read next
- Section 373: procedure on an application for a succession certificate
- Sections 376-379: extension, forms, amendment and court-fee deposit for a succession certificate
- Sections 291-292: administration bond and its assignment
- How to transmit shares on the death of a shareholder
Disclaimer: Based on an unofficial print of the Indian Succession Act, 1925 showing amendments up to the Indian Succession (Amendment) Act, 2002 (26 of 2002), as consulted on 2 October 2026. It explains the words of the statute only; later amendments, State amendments and rules, court fees and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.