Section 176 of The Navy Act, 1957
On receipt of the surplus referred to in sub-section (7) of section 171 or clause (ii) of section 172 or sub-section (4) of section 175, the prescribed person shall,--
- (a)if he knows of a legal representative of the deceased, pay the surplus to that representative;
- (b)if the surplus does not exceed 1[the prescribed amount not exceeding rupees on lakh in value] if he thinks fit, pay or deliver to any person appearing to him to be entitled to receive the same, without requiring such person to produce any probate, letters of administration, succession certificate or other conclusive evidence of title;
- (c)if the prescribed person does not know of any such representative to whom the surplus could be paid under clause (a), or if the surplus has not been disposed of under clause (b), publish every year a notice in the prescribed form and manner for six consecutive years; and if no claim to the surplus is made by the legal representative of the deceased within six months even after the publication of the last of such notices, the prescribed person shall deposit the surplus together with any income or accumulation of income accrue therefrom, to the credit of the Central Government: Provided that such deposit shall not prejudice the claims of any person to such surplus or any part thereof, if he is otherwise entitled to it.
Summary
- This provision outlines how a prescribed person must distribute any leftover money from a deceased person's estate, known as the surplus.
- If the legal representative of the deceased is known, the surplus is paid directly to them.
- If the surplus is under a set limit not exceeding one lakh rupees, it can be paid to someone who appears entitled without requiring official court documents like a succession certificate.
- If the representative is unknown and the money is not paid out, a notice must be published every year for six consecutive years.
- If no claim is made within six months of the final notice, the money is deposited to the Central Government, though rightful claimants can still claim it later.
Practical examples
FAQ
1. What is the monetary limit for paying out a surplus without a probate under Section 176 of The Navy Act 1957?
Under Section 176 of The Navy Act 1957, the prescribed amount for paying out without official evidence of title cannot exceed one lakh rupees in value.
2. How long must notices be published if no heir is found under Section 176 of the naval statute?
Section 176 of the naval statute requires the prescribed person to publish a notice every year for six consecutive years.
3. What happens if a legal heir shows up after the money is given to the government under Section 176 of the 1957 Navy rules?
According to Section 176 of the 1957 Navy rules, depositing the money with the Central Government does not prejudice the claims of any person who is otherwise entitled to that surplus.
4. Can the prescribed person pay the known legal representative immediately under Section 176 of this defence law?
Yes, Section 176 of this defence law states that if the prescribed person knows of a legal representative, they shall pay the surplus to that representative right away.
Test yourself
Q1.Under Section 176 of The Navy Act 1957, what is the maximum value of a surplus that can be paid out without requiring a succession certificate?
Q2.If no legal representative is known, how often and for how long must a notice be published under Section 176 of the naval law?
Q3.According to Section 176 of the 1957 Navy Act, how long must the prescribed person wait after the final notice before depositing unclaimed funds with the Central Government?
Q4.Looking at both Section 176 and Section 175 of The Navy Act 1957, where might the surplus money originally come from before the prescribed person handles it?