Facts of the case
Ratan Lal executed a Will on 15.10.1977 expressing his interest to convey a part of his estate to Jain Bal Ashram which is run by the Jain Society, registered under the Societies Registration Act, 1860. Ratan Lal passed away in the year 1978 and the Society filed an application for the grant of Letters of Administration, which was challenged by the Appellants, who argued that, as per the provision of Sec. 236 of the Indian Succession Act, such Letters of Administration cannot be granted to an association of individuals unless it is a company which satisfies the conditions prescribed by rules to be made by the State Government in this behalf. The matter was heard by the High Court, which held that a Letter of Administration could be granted in favour of a Society. Aggrieved by this decision, a Special Leave Petition was filed by the Petitioner under Article 136 of the Indian Constitution (which provides Supreme Court the discretionary power to hear appeals in cases where substantial questions are involved).
Issue before the court
- Whether a Society registered under the Societies Registration Act, 1860 is entitled to obtain Letters of Administration under Section 236 of the Indian Succession Act, 1925 ?
Judgement
The Hon’ble Supreme Court held that a Society registered under the Societies Registration Act, 1860, is not entitled to obtain Letters of Administration under Section 236 of the Indian Succession Act, 1925. The Court clarified that the societies are considered as “associations of individuals” and does not fall under the ambit of “Companies” as specified by the Act.