The Administrators-General Act, 1963- Administrating the Ownership of Ownerless Properties

The title and duties of an ownerless property can vary from one region to the next as numerous countries and regions have their administrative procedures for managing the estates of a deceased person. When the ownership of a property comes to a person who has not made a will or has not assigned any person as an heir, then on their passing, the ownership of such an estate becomes questionable. In such cases, the ownership of the property is determined by the Administrator General.

Who is an Administrator General?

The Administrator General is a government agent or office in charge of administering the estates of people who have passed away but did not leave a will or name an executor. In some jurisdictions, the Administrator General may be tasked with managing the property of minors or those incapable of managing their affairs. In most cases, this responsibility falls under the purview of succession law and estate management.

The Administrators General Act, 1963

The Administrators General Act of 1963 was created to combine and amend the regulations concerning the position and responsibilities of the Administrator General in India. The Act is divided into 64 Sections and 8 Chapters.

The Act addresses several topics, such as asset management, certificate granting, and fees. The Act lays out rules for the Administrator-General to follow to safeguard assets from waste. Financial issues, such as account audits and collecting fees to pay for administrative expenditures, are also covered.

The definition clause mentions the Assets under Section 2(a) of the Administrators General Act of 1963, which refer to any movable and immovable possessions owned by a deceased individual. These assets can be used to cover their debts, and bequests or assets can be divided among heirs and closest relatives.

Section 2(b) of the Administrators General Act of 1963 mentions Letters of Administration, which contain various forms of letters of administration, regardless of whether they are general or have a copy of the will attached. These Letters of Administration can have time limitations or possess other specific conditions.

The Office of the Administrator General

Chapter III of the Administrative General Act of 1963 is divided into three segments related to the Grant of letters of administration and probate, Revocation of Grants, and General.

Under the first Segment, Section 9 details the Administrator General’s right to request the administration of an estate.

• When a person dies and has assets worth more than Rs 10 Lakh within a specific state.
• When within one month of a person’s death, no individual with rights to assets has applied within the state for probate or letters of administration for these assets.
• When no other proceeding is instituted for claiming the right on such assets by any entitled person.

Section 9(2) states that the Administrator-General will only initiate actions if they are convinced of a risk of assets being stolen, damaged, or wasted if they do not take action.

Section 10 of the Act talks about the Power of the Administrator-General to gather and retain assets.

When an individual dies and leaves assets of more than Rs 10 lakhs, and if the High Court in that state is convinced of an immediate risk of these assets being misused, damaged, or wasted, then it can upon the request of the Administrator-General or any concerned party, instruct the Administrator-General to perform the following duties:

• Gather and take control of these assets.
• Manage, safeguard, realise, sell, or invest them as per the High Court’s instructions or,
• When no instructions are given, then by the relevant provisions of this Act manage, safeguard, realise, sell, or invest these assets.

As per Section 10(2), if the High Court passes such orders, then the Administrator General becomes entitled to the following:

• Maintain any suit or proceeding for recovery of assets
• Submit application for letters of administration of the deceased’s estate
• Withhold from the estate’s assets any fees that are applicable as per the Act
• Reimburse from the estate’s assets any expenses which he/she has incurred in connection with these assets.

Under the second segment, Section 14 of the Act details the recall of the Administrator General’s administration and grant of probate.

When an executor or close relative of the deceased proves to the High Court that they have a legitimate claim for the probate of the will or letters of administration, then the letters of administration previously granted to the Administrator-General:

• Will be annulled if the will of the deceased is proven.
• Can be annulled if an application for this purpose is submitted within 6 months after the Administrator-General was granted the authority, and the High Court is convinced that there is no unreasonable delay in applying.

In such cases, the probate or letters of administration can be granted to the executor or next-of-kin, as appropriate.

Grant of Certificate

Section 29 of the Act discusses in what cases the Administrator General may grant the certificate.

If a person dies and the Administrator-General of the estate is convinced that the total value of their assets, excluding money in a government savings bank or a provident fund regulated by the Provident Funds Act, 1925, is not more than Rs. 10 Lakh, then

the Administrator-General can issue a certificate to a person with a legitimate claim to these assets, allowing them to receive those assets of Rs 10 Lakh Rupees left by the deceased.

Section 29(2) states that a certificate cannot be issued until at least a month has passed since the death of the person.

However, within that one month, the executor, widow, or another individual entitled to manage the deceased’s estate submits a written request for it, and the Administrator-General approves it, then the certificate can be granted.

Section 29(3) states that a certificate cannot be issued under this section when the probate of the deceased’s will or letters of administration for their estate have already been granted.

Section 30 of the Act states Grant of Certificate to the creditors:

• If, within 3 months of a person’s death, no person with a legitimate interest other than a creditor has obtained a certificate from the Administrator-General or probate/letters of administration, then the Administrator-General can grant a certificate to the creditor.
• If the Administrator-General refuses to administer the estate, a creditor can request a certificate similar to the certificate granted under Section 29, and
• Creditors may need to provide security for proper estate administration if requested by the Administrator-General.

Liability Under the Administrators General Act

Chapter V Section 38 details the liability of the government. The government is responsible for covering all debts that the Administrator-General would have to pay if they were a private administrator.

If the liability is not in any way related to the Administrator-General or their officers, then neither the Administrator-General nor the government is responsible.

Audit of the Administrator General’s Accounts Under the Act

As per Chapter VII, Section 43: Under Audit, the financial records of every Administrator-General must undergo an annual audit under the direction of the State Government by following the prescribed procedures.

Section 44 of the Act states that the Auditor will examine accounts and report the same to the State Government.

Fees under the Administrators General Act

Chapter VI Section 41 of the Act describes the framework for the State Government to establish fees for the services the Administrator-General provides. These fees can vary based on the type of estate or responsibilities involved and cover the salaries and other costs associated with this Act.

Conclusion

The Administrator General is responsible for ensuring that the assets are dispersed by Indian succession and inheritance rules and for safeguarding the interests of the beneficiaries of these estates. Additionally, this agency serves as a trustee for several religious and charitable trusts. The Act ensures that resources are managed effectively, and legitimate beneficiaries receive their entitled amount.