Payment of Gratuity and Succession Certificate for Pension dt 01.06.1980

Payment of Gratuity and Succession Certificate for Pension dt 01.06.1980

OFFICE MEMORANDUM

Subject: Succession Certificate

According to Rule 4.7 of the West Pakistan Civil Services Pension Rules, only the members of a deceased Govt. servant’s family, as defined in the said Rule, are entitled to receive gratuity if the deceased employee had failed to nominate any dependent to receive such payment. Other relatives like brothers, sisters, father and mother become entitled to receive gratuity only if the deceased Government servant has not left behind any family. Cases have, however, come to the notice of Government in which the subordinate civil courts have made declaratory judgements in the form of succession certificate in favor of persons not entitled to any payment under these rules. Competent administrative authorities have been found to be in doubt whether payment of dues should be made in accordance with the Rules or on the basis of declaratory judgement of civil courts. An apprehension is expressed by some authorities that payment of dues in accordance with rules might entail proceedings for contempt of court.

2. The factual position, as advised by law department, is that a succession certificate is mainly for the benefit and protection of the debtor and not the creditor. It is intended to provide a dishonored to the debtor so that he may not be called upon to make payment of the claim all over again. It is not a complete and final adjudication of the rights of inheritance of the various heirs. It is simply a declaration in favor of a particular person on the basis of which the debtor may, if he so likes, make payment of the debt to the person holding the succession certificate.

The Government as framed its own Rules as to how the dues of a deceased person are to be paid, it is free to make payment of the dues in accordance with those Rules and the parties aggrieved can approach civil court and claim their part of the share from the person who has received the amount from the debtor. A succession certificate is not a mandatory order or a direction from the court that the amount must necessarily be paid to the person to whom the succession certificate has been granted. Accordingly, the question of any contempt of court does not arise if it is decided to pay the amount in accordance with the Rules and not in accordance with succession certificate.

3. The above position may kindly be brought to the notice of all Pension Sanctioning authorities and Drawing & Disbursing Officers for settlement of claims for Pension and G.P. Fund accordingly in all cases where the courts have given declaratory judgements.