Is there a Waiver in Arrears of Penalty for Deceased Individuals?

arrears of deceasedThe proposition

There are various corporate laws, which are applicable on any working individual. However, certain issues have been missing in those laws. Recently, a proposition was made regarding abolition of waiver on arrear penalty matters applicable to those who are no more.

An application was addressed to the ministry of finance, government of India, central board of excise and customs, department of revenue. The application was written on 18 June 2013. It clearly states that, according to the meeting held amongst the chief commissioners and directors this proposal was accepted and registered on 28 October 2012.

In the letter, it clearly states that the practice of various cases related to matters continue to proceed and often the heirs of the defaulters are harassed. However, some personnel during the meeting objected this proposal and it was not accepted widely. Still a thorough observation was conducted regarding the recovery of penalty amount imposed on those who are dead. Generally, in the situations the legal heir has to bear it. As the case goes on, the personal properties left by the dead person, occupy the immediate position.

The after effects

This had raised uproar amongst the ruling courts. Difference of opinion was observed. While the ruling courts of Patna and Kerala allowed this to continue, the honorable justice of Kolkata and Allahabad supported this proposal and said that it was not correct to collect the remaining amount from the heir if a person faces sudden death. The deceased ones are those who have to face this without their fault.

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The question

However, as it is clearly seen that this decision could not reach anywhere and thus, is still undecided. The decision of such proceedings depends upon the bench though they cannot be stated as a law as of now. Many such cases have been observed lying in files. These cases gradually build up a burden on the person concerned. It is difficult at times to come out of it, as the proceedings seem to go on for years. The heir suffers the faults of his master. In fact, in certain cases, the proceedings never end and the one after the legal heir has to carry it forward. Thus, the vital question remains that should a person completely unaware of a debt are the one to solve it or fill for it.

The way out

No definite judgment has been taken as of yet, as said above. However, rights have been given to the judicial system to justify such cases with their sense and perception. Thus, a judicial bench has every right to claim the penalty from the legal heir of the dead ones or may give them a lease. Hence, it remains a probing problem and no statutory rule has been claimed or no provisions will be made in this regard.