Nominee is only trustee for legal heirs 

2) hence company is seeking succession certificate 

3) request company to pay dues to your mother submit yours and sisters NOC 

4) you can execute indemnity bond to indemnify company in case any claims are made 

You would not require succession certificate if you submit NOC together with indemnity bond 

if company refuses you have to apply for succession certificate 

legal fees vary depending upon lawyer engaged by you 

- As per law, in case of death of an employee before claiming the PF amount, the amount standing in the deceased employee’s , it can be claimed by either the nominee or the legal heir of the deceased person.

- Further , for claiming the said amount by the nominee or legal heirs, the following documents are needed : -

1. An Application for the withdrawal by Nominees/Legal Heirs

2. Death certificate of the employee

3. Death certificate of nominee

4. Succession Certificate/Letter of administration /Probate of WILL. 

5. Nationalised Bank’s Passbook of the nominees

6. Letter of indemnity 

- If the said amount will be given to the nominee , then legally legal heirs can claim the same from the department , as nominee is only a trustee of legal heirs. 

- Hence, it is required to be submitted succession certificate. 

If your mother had been a nominee to the PF and  other terminal benefits of your deceased father's service terminal benefits, your mother should send a letter to the authority concerned that she was made the nominee hence the terminal benefits are to be settled to her, this letter should be sent by registered post.

If the authority still insists on succession certificate then she can file a writ petition against the employer before high court seeking justice and remedy to this problem.

If you confirm that there exists a valid nomination in the service records of your father, your mother should immediately approach the authorities concerned, if necessary she can attach the NOC by her children along with the legal heirship certificate to her application.

she may even seek the audience of the competent authority if need arises to solve the issue amicably.

In this case succession certificate is not required as nomination has been clearly made. Yes you can do the aforesaid

Hi 

1) In general, the company vide Section 4 of Gratuity act  and vide section 8 of PF Act  should make payment of PF and gratuity to the nominee within a period of 30 days from the date of an application submitted by legal heirs. 

2)  Also in your case, since all the legal heirs (i.e you, your sister and mother) are consenting to transfer the entire amount to your mother, it is sufficient that the company can release the monies to the nominee based on an application along with an indemnity bond executed by the Legal Heirs on a Rs100 Stamp Paper. 

3) So, technically the company seems to be buying time by insisting on succession certificate only to delay the payment of Full and Final Settlement of Deceased employee. 

4) So, please submit an application along with indemnity bond executed by all the legal heirs on Rs100 Stamp Paper to the companies and in case the company does not release the payment within 30 days from the date of application, you are entitled to claim damages / compensation @18% per annum for every day of default. 

Hope this information is useful. 

It makes no sense in aggravating the issue 

offer to give an indemnity bond and NOC of other legal heirs 

- Nominee is entitled to get amount of insurance after the death of policyholder , as per Insurance Act. but this not applied in another organisation .

You were advised to inform your mother to initiate legal action by first issuing a legal notice to the company demanding the terminal dues of the deceased on the basis of nominee to the deceased. 

Subsequently,  she can file a suit seeking direction to the employer to settle all the terminal  dues of the deceased on the basis of nominee to the deceased by following due procedures of law. 

The company cannot frame its own rules or regulations in this regard. 

It has to follow the law of the land.

Hence you better discuss in detail with a local experienced lawyer and proceed as suggested. 

It's illegal they can't have