Special relaxation for payment of minor's share without guardianship certificate

(4) Special relaxation for payment of minor's share without guardianship certificate, up to the extent of Rs. 10,000. - 1. Decision No. (3) lays down that the payment of a minor's share of death/retirement gratuity is to be made to the person producing a guardianship certificate when there is no surviving parent or the surviving parent is a Muslim lady. It has been represented that in many cases, the production of guardianship certificate causes great inconvenience and entails delays in the settlement of the claims. 2. It has been decided in modification of the above decision that payment of death/retirement gratuity to the extent of Rs. 10,000 (or the first Rs. 10,000 where the amount payable exceeds Rs. 10,000) in favour of a minor may be made to his/her guardian, in the absence of a natural guardian, without the production of a formal guardianship certificate but subject to the production of an indemnity bond with suitable sureties to the satisfaction of the sanctioning authority. The balance in excess of Rs. 10,000, if any, would become payable on the production of a certificate of guardianship. 3. It is essential, however, that there should be adequate prima facie grounds for making payment as in paragraph 2 above, to the person claiming it. Such ground can exist only if he is shown by a sworn declaration to be a de facto guardian and his bona fides have been ascertained. Even if a guardian has not yet been appointed by the Court, if the minor and his property are in the custody of some person, such person is in law a de facto guardian. The authorities making the payment should, therefore, require the person who comes forward to claim payment on behalf of the minor, to satisfy them by an affidavit that he is in charge of the property of the minor and is looking after it or that, if the minor has no property other than the gratuity, the minor is in his custody and care. The affidavit so to be produced is in addition to the indemnity bond with suitable sureties. 4. The indemnity bond which is to be required to be produced by a de facto guardian of minor(s) for payment of death/retirement gratuity to the extent of Rs. 10,000 should be executed in the form appended below. 5. It has been decided that the stamp duty payable on the indemnity bond will be borne by the Government. The indemnity bond should, therefore, be executed on any durable plain paper. 6. The indemnity bond should be signed by the obligor and the surety/sureties or their respective attorneys appointed by power(s) of attorney. The indemnity bond on behalf of the President should be accepted by an officer duly authorised under Article 209 (1) of the Constitution. [G.I., M.F's., O.M. No. 10 (3)-E. V (A)/61, dated the 29th June, 1971, O.M. No. F. 10 (6)-E. V (A)/65, dated the 11th February, 1966 and Dept. of P. & P.W's, O.M. No. 7/9/89-P. & P.W. (D), dated the 5th July, 1989.]