Apply for letters of administration from district court as father died intestate
Enclose father death certificate
schedule of property
Notice would be issued to legal heirs
it takes around 6 months if there is no contest
Death of sole proprietor (My Father) - Ownership of land registered on firm name.
My father died 4 months ago.My father was owner of a proprietor firm registered in 2003, which is not operational since 2006. We didn't apply for any firm closure after 2006. As my father died and we as legal heir want to own the land registered on firm name. I went Jurisdiction Office, Officer (Patwari) said, they cannot do the transfer to legal heirs directly. They need something as a proof to transfer as the land is registered on firm name, not on the person name. My quesion is : 1.What kind of proof we can provide to have ownership of land registered on firm name ? 2. What will be the correct department to get the proof from ? Thanks
Asked 2 years ago in Business Law
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
9 Answers
1) You can first activate the company name with company registrar till current financial year, since it's not active from 2006.
2) Once all rights get possession on company's name, then later on get property transfer on any one Director name later take decision in AGM to transfer land on legal heirs name.
You need to cancel the registration of firm first as the proprietor is no more it cannot be transferred in your name. Make an application the municipal authority with death certificate and your aadhar/voter id or any other document that shows your relation of father. Once the registration is cancelled you can approach patwari and the property transferred in your name.
As father's name is there in records you need to submit his death certificate and your documents showing you as son to patwari.
- Since the said property is in the name of firm , then you can apply for getting cancelled the proprietorship of the said firm before the Registrar of the companies after submitting proof of death of father.
- Further , after getting cancellation report of the firm , you can move an application before the registrar to transfer the property in the name of legal heirs.
- There may be requirement of letter of administration from the court .
Dear Client,
You may file an application for the cancellation of proprietorship of such a firm at the Registrar of Companies. You would be required to show a Government recognized Identity Proof, especially the Aadhar Card and the Pan Card, along with your father's death certificate to prove that you are the legal heir of the deceased.
Once this has been done, you may approach the Patwari for transferring the said land to your name.
Thank you.
Registered deed for purchase or transfer of said land.
Registration dept sub registrar office
The firm does not exist independently. Thus, when the sole proprietor dies, the firm also ceases to exist. More particularly says that, since proprietorship concern has no perpetual existence, sole proprietorship ceases to exist if the proprietor dies.
Please do understand that registrations such as service tax, PAN and other governmental requirements will be either in your father’s name or in the name of the firm. In either case, only your father is responsible for both.
If a person dies intestate, then the applicant is seeking administrative rights pertaining to the deceased estate files for the Letter of Administration.. The Letter of Administration would grant the same administrative rights to the beneficiaries that an executor would have enjoyed.
First apply legal heirship certificate / Succession Certificate and then
Apply for Letter of Administration .
Under Indian law, a sole proprietorship does not have a perpetual succession, which means the business will immediately come to an end, the moment the sole proprietor dies or becomes insolvent.
As per the Indian Succession act, after the death of the sole Proprietor, his/her legal heirs do not automatically start to inherit the old business of the deceased, but they only get to inherit the assets. Where the sole proprietor had made a will, the executor /administrator will follow the will and accordingly deal with the assets and debts. However, when there is no will, the assets will either be sold to any of the family members, upon the wish of the beneficiary or executor/administrator. In case a beneficiary buys the business of the sole proprietor, then he may either choose to continue the business with the assets under his name or he might also sell the business to any of the family members or might elect some other person to operate it or might even choose a partner for running the same.
In a case where there are any debts in the business, the executor/administrator will have to liquidate all assets of the business and settle such debt. The effect of the death of the sole proprietor is that the business cannot run and exist after the death of the owner. Hence after the death of the owner either the business must be wound up completely or transferred to any other person or should be dissolved as per the will of the deceased. In the case of Commissioner of C. Ex. Vs. Shree Ambica steel industries, “late Smt. Bimla Rani was the proprietor of the respondent-firm M/s. Shree Ambica Steel Industries. After her death, the legal heir applied for cancellation of Excise registration in the name of the firm, and the registration was admittedly canceled by the Department in October 2006. It was held that since sole Proprietorship has to separate legal identity from that of the owner, hence after her death the company ceased to exist. Also, the notice issued against such a firm by Ambica Steel Industries, Mandi Gobindgarh was considered a bad law as it was against a non-existing Firm. This circumstance in itself is sufficient to dismiss the appeal filed by the Department”.
Under Indian law, the legal heirs of the deceased have the option of winding up the business after filling GST and Tax under section 29(1) and section 93(1)(b) of CGST Act, 2017.
a sole proprietorship is not a separate legal entity
the true owner is the proprietor himself
so after his demise, his legal heirs would become entitled to the property
the legal heirs have to obtain a letter of administration from the Court or an heirship certificate and thereafter apply for mutation in the revenue records
