Succession Certificate By The Widow To Claim The PF Amount

Hi,

Recently, my husband passed away, and he had nominated his mother for the PF amount in office records. I would like to know if we have the right to claim the PF amount. The HR department at the office is requesting a Succession certificate to process the claim. However, my mother-in-law is not supportive. I am seeking assistance with this matter as I have a young child who is one and a half years old.

Your help in resolving this issue would be greatly appreciated.

Thank you.

Even if the nominee takes the payment, she does so on behalf of the Class I legal heirs of her deceased son. Therefore, you and your child have all the legal rights to claim dues from the nominee. Obtaining a succession certificate establishes your legal right to claim PF dues. However, it is advisable that you sit down and discuss the matter with other elders so that your mother-in-law is not left in a financially precarious situation; after all, a mother has expectations.

Thanks,
Sushil

Thank you for the acknowledgment. I wish to point out that a mother falls in the list of Class I heirs under the Hindu Succession Act. Therefore, the mother, son, and widow are entitled to equal shares, even if the widow obtains a succession certificate.

Thanks,
Sushil

It is not very often that we see legal view matching humane view, especially in such matters. I add my appreciation to that of Mr. Divekar and Mr. Luthra.

What will be the court charges for a 3-lakh amount? My mother-in-law is against me, but she won't sign any NOC. Now, she is not interested in discussing anything. If the situation is like this, what can I do? Can you suggest something to me?

So now, even my son and I will have the rights to claim the PF amount. How many days does it take to get the succession certificate?

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Court fees will not be much. Ask a local district court civil lawyer; it may be nominal. However, the procedure is lengthy. Through the mediation of a lawyer, make her understand the extent of her legal share. Once it is locked in litigation, neither she, yourself, nor the child will be able to get anything for a considerable period. Firstly, make an application before the office not to disburse anything out of the PF amount. If she does not agree, file an application to obtain a succession certificate and suitable interim injunction against the office or nominee immediately.

Thanks,
Sushil

Dear all,

Wife and children have the full legal right to the pension even in the absence of proper nomination or NOC from dependent parents. Concerning EPF accumulations, it can be divided equally between the wife and mother if an NOC or succession certificate cannot be produced.

Please correct me if something is written incorrectly.

P K Sharma

Nomination of EPF would become invalid after the acquisition of one's own family, i.e., after marriage. The wife may inform the office of the employee, with a copy to the RPFO concerned, providing all relevant details of the employee. She should state that the deceased employee probably forgot to change the nomination and also that he has a child with her. The request to the EPFO should be to remit the dues to the legal heir, including her share, thus making the payment to the nominee invalid in law.

It is not clear from the facts whether the deceased husband made the nomination after marriage or before. In any case, the mother is also a member of the family under the definition of family, so the nomination subsists. Even if it is held that the nomination does not subsist, then under para 70(ii) of the EPF scheme, these members - mother, wife, and child - shall take an equal share, which the EPF office should implement.

Thanks

Sushil

With every marriage, the previous nomination automatically becomes NULL as per law. Therefore, if the nomination is made before this marriage, then the nomination has already become void.

Under the definition of family, for PF purposes, father and mother are also included. Therefore, in this case, it will be wise to share the PF amounts equally. However, for Family Pension Purposes, only the wife and children are eligible, and you can claim this exclusively along with the child. The EDLI amount too will have to be shared just like the PF amount.

Similar problem cropped up in Pushpa v Jiya Bai decided by the MP High Court in 1997. There, the wife sought to obtain a succession certificate despite the nomination made by the deceased in favor of his mother. The nomination was upheld as it was made in favor of a member of the family, i.e., the mother. It was held that the nominee gave due discharge to the authorities but cannot have an absolute right over the amount. The nominee has to give the amount to which the legal heirs are entitled. Similarly, the Apex court held in CK Prahalada v State of Karnataka in 2008 that the nominee or holder of the succession certificate has to hand over the property to the legal heirs entitled to the legal rights of the property. Thus, obtaining a succession certificate does not make the holder the absolute owner of the property.

In view of the MP HC decision stated above, it cannot be said that the nomination made in favor of a family member becomes null. Furthermore, the father does not appear to be included in the definition of family.

Thanks,

Sushil

I beg to differ with Mr. Luthra. The lawyers charge 10% of the total amount claimed as fees. I got a succession certificate for my deceased sister's assets, hence I know.

Under the Advocates Act, rules have been framed regarding conduct of Advocates. Following is the relevant rule:
"RULES ON AN ADVOCATE’S DUTY TOWARDS THE CLIENT
10. Not charge depending on success of matters
An advocate should not charge for his services depending on the success of the matter undertaken. He also shall not charge for his services as a percentage of the amount or property received after the success of the matter."
In every profession every types of professionals are there!
Thanks
Sushil

I am not clear about the mother's name as the nominee. It should be either the father or the wife.

Paragraph 2(g) of the Employees' Provident Fund Scheme defines "family" to include, among other things, dependent parents. Therefore, please read paragraph 70(ii) in conjunction with it.

Thanks,
Sushil

With due respect to all seniors responding above, I am asking only for academic purposes.

Does that mean that "Nomination is a useless process, which has no legal protection"?

Please refer to the above decision of Pushpa v Jiya Bai, wherein it is clearly held that a nomination is valid if it has been given to a family member. The nominee gives effective discharge to the authorities, but the nominee does not have absolute right over the accumulated EPF dues. He has to hand over the respective shares to the legal heirs of the deceased as per their entitlement under the relevant law.

Thanks,
Sushil

Thank you, Sushil! I am just trying to understand all dynamics of this process.

If the nomination is considered as valid, would an application made before the EPF office, 'not to disburse anything out of the PF amount,' be justified? Can we say that in this case, the mother can request immediate discharge of the amount? Does she have to sign any declaration that she is the only legal heir for the descendant and produce any NOC? If not, then she should be given all the amount anyway. The dispute of sharing these assets between legal heirs will be settled in mutual agreement/family court.

In short, whoever completes the procedure first (wife to produce a succession certificate to the EPF office, OR mother to request discharge of the amount) would get their first-hand on the amount? Also, the widowed wife may have to bear charges not only for the succession certificate, but possibly also for running the case in family court for this dispute.

Thanks in advance for sharing your views! Amod.

If a nomination is valid, then the amount has to be given to the nominee, who is a member of the family, to discharge the authorities. Even the succession certificate is not needed. See the case of Jiya Bai. The necessity of obtaining an injunction is suggested in contemplation that the mother may not spend away the shares of other legal heirs. As stated in the apex court, the nominee or succession certificate holder has to deliver the appropriate share to the legal heirs and for minors to his/her guardian.

Thanks,
Sushil

Dear All,

Adding to this thread, can anyone let me know what happens if a person has nominated his sister before his marriage? In the case of any event, are his wife and child entitled to claim the PF amount?

With Regards,
Nandini

Nomination made in favor of the sister of a female member after the marriage of the female member becomes invalid under para 61 of the EPF Scheme. It should be done after her marriage in favor of a family member as defined in para 2(g) of the Scheme.

Thanks,

Sushil

Dear Mr. Sushil,

Thank you for your email. What if the sister is already married and separated from her husband at the time of nomination? Are the wife and child entitled to the claim?

With Regards,
Nandini

Wife and child are members of the family of a male member, and they are entitled to an equal share of the PF dues of the male member after his demise. Nomination should be made after marriage in favor of family member or members as defined in para 2(g) of the Scheme. Nomination in favor of a sister is invalidated after the marriage of the male member.

Thanks,

Sushil

If your husband writes anyone, his mother, before your marriage, then you will be entitled to a claim because obviously he wrote a nominee when you were absent in his life.

Dear Sir,

I am Gayathri. I had a conversation regarding the PF amount of my husband. Now, my mother-in-law has signed the NOC stating that she does not need the PF amount or any claims. She has written a note requesting that all the claims be given to her daughter-in-law.

How many days does it take for the process of obtaining a succession certificate? We are eagerly awaiting the release of all the amounts to us, sir. Can you please assist me with this query?

Thank you.

Instead of seeking a succession certificate, persuade your mother-in-law in whose favor the nomination lies to withdraw the amount promptly instead of wasting time and money in court. Then, both of you can decide on how to distribute the amount. The PF authorities may not have any objection to paying her as the nominee.

Thanks,
Sushil

Hi, my mother-in-law has signed a NOC stating that she doesn't need the PF amount or any claims. How long does the process of obtaining a succession certificate take? Can you please tell me what the next steps in the process will be?

Please ask her to claim the PF amount as the nominee and then disburse the amount to you and your child. You can provide her with a receipt of the money on behalf of yourself and your child. This way, there will be no need to go to court to obtain a succession certificate.

Thanks,
Sushil

Hi,

Actually, my mother has signed the NOC stating that she doesn't need any PF amount or any claims from my husband's office. What will be the process for this? Will the NOC be accepted, and how many days will it take for the process to be completed? Can you please provide me with this information?

You tell your grandmother that it is in the family's interest that you should not be compelled to go through court processes to obtain litigation. Her own grandson will be deprived of immediate benefits of PF money to meet his education expenses, among others. Additionally, she can share some amount from that PF fund to cover medical expenses. As a valid nominee, she may withdraw the PF amount on your behalf and your son's behalf and disburse it to you. Initially, she was reluctant to give anything, but now she has decided to surrender everything for you and her grandson. Take some more time to help her understand. Family issues should ideally be resolved within the family. If no resolution is achieved, inquire with EPFO whether a Tehsildar's certificate for both you and your son, as legal heirs, would be sufficient. They may require you to fill an indemnity bond to safeguard their interests. As previously mentioned, in cases where a nominee is unavailable, EPFO may release the PF dues to legal heirs, as defined under the EPF Act and Para 70 of the EPF Scheme. The key is to avoid resorting to legal action.

Thanks,

Sushil

If the nominee signs an NOC stating that she doesn't need any PF claims or benefits, how many days does it take for the succession certificate? My mother-in-law signed the NOC indicating that she doesn't require any PF money or claims. How many days does the procedure take now?

If you file a case for a succession certificate, she will be impleaded as a defendant and asked to reply to the court's notice. The same problem may arise again. Ask a local lawyer how much time it takes to look into the pendency of cases of all sorts before the court.

Thanks,
Sushil

If the nominee has signed the NOC stating that she doesn't require any PF claims of the deceased person, how many days will it take for the process? I am the wife of the deceased person, so will the PF claims be given to us? Please provide us with feedback regarding this.

If the nominee signs an NOC stating that she doesn't need any PF claims of the deceased person, which can be handed over to my daughter-in-law, she had written the NOC. Do we receive the amount, and how many days does the process of succession with the NOC take? Can you please guide me regarding this?

I had obtained the NOC from my mother-in-law. She stated that she doesn't need any PF claims.

The thing she had signed the NOC because what are the properties she has. She said that my son and I don't have the rights to that property. She asked me to sign a bond paper, so I signed it. I even asked her to sign the NOC for these PF claims. She had signed the NOC for the PF claims.

Now, the question is whether we can claim the amount or not and what will be the process for that and how much time it takes.

It is better if you visit along with some mature person to the local EPF office and provide all these details. Follow up with them. If they decline, then escalate the issue.

Thanks,
Sushil

I had a previous conversation regarding the nominee. I just wanted to confirm if the nominee signs a NOC, then how will the process be? Do we have the right to claim the amount? Can you please suggest me regarding this and how many days it takes for the process.

If the nominee has signed NOC indicating that she does not want the PF money, it means that the nomination does not subsist under para 70(ii) of the EPF Scheme 1952. Under this provision, the PF amount is payable in equal shares to family members as defined under 2(g) of the scheme. You have to demonstrate to the EPF authorities that you and your minor son are the only ones comprising the family, as your mother-in-law has already provided the NOC. They will request relevant proof from you, such as an affidavit and an indemnity bond, to support your claim. You may mention that the succession certificate may not be required because in the absence of family members as defined under para 2(g) of the scheme, the provision of the next subpara (iii) comes into effect, whereby the PF amount is payable to a person legally entitled to it. In this case, such a person would need to obtain a succession certificate. Therefore, para 70(iii) will not be applicable in your situation as the amount can be disbursed under para 70(ii) to the family members in equal shares. It is advisable to inquire with the local PF office about the processing time. It would have been more efficient if your mother-in-law had withdrawn the amount promptly on your behalf.

Thanks,

Sushil

My younger brother has passed away, and he was unmarried at the time of his death. He had nominated our unmarried sister. However, EPFO is now requesting a succession certificate before final settlement. Is it a valid requirement to obtain a succession certificate in this type of case? Please advise.