Nishant Kumar (ZSM) 24 December 2011

Dues settlement agreement

Hi Seniors!

I am new to the Lawyers Club India. I'm working as a Manager-HR with a infrastructure company in gurgaon. I need a help for making a Dues Settlement Agreement for a Senior Management Employee for the company, who has died recently. this agreement has to be described in 2 points;

1. Total full & Final amount to be deposited in the bank a/c of the son (Minor, newely bornd) of the said employee (Bank A/c has been opened by our company).

2. Car transfer Agreement : The said employee has purchased a car on the loan of the comapny for the purpose of business as well as personal use. However, the loan amount taken by the employee has been completed before his death, we have to do the Car transfer formalities for his family. In this Agreement, we wish to be agree to transfer the car to the mother of the said employee. and also, wish to agree that it will be free of any charges (i.e., free of cost)

Now, I have to draft a letter as "Dues Settlement Agreement" including the above mentioned point. please help me in the drafting of the same as I'm a new learner in labour laws.

Looking forwardfor a kind cooperations from the members of "Lawyer Club India".

With Warm Regards,

Nishant Kumar

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1 Replies

Kumar Doab (FIN) 24 December 2011

The spouse of the deceased employee is class 1 legal heir. Has the spouse surrendered right in favor of son and mother of deceased employee? The bank a/c in the name of minor (newly born) son must be a u/g if yes who is the guardian?

Did the employee nominate any one in company records e.g. group insurance, group mediclaim insurance, PF, gratuity etc. If the deceased employee was Hindu :

"When a Hindu male dies intestate his property devolves around his legal heirs. Section 10 of the Hindu Succession Act, 1956 gives in detail the list of Class I heirs who are go be given first preference while dividing the property of the deceased. Rule 1 of this Section provides for a share of property for the widow of the deceased. Rule 2 of this Section provides for a share each for the surviving sons and daughters and the mother of the deceased."

It shall be appropriate to obtain legal opinion from your legal cell/lawyer of your company in writing, and place it on record.