Subject to the provisions of this Part, the certificate of the District Judge shall, with respect to the debts and securities specified therein, be conclusive as against the persons owing such debts or liable on such securities, and shall, notwithstanding any contravention of section 370, or other defect, afford full indemnity to all such persons as regards all payments made, or dealings had, in good faith in respect of such debts or securities to or with the person to whom the certificate was granted.
Legal Commentary & Landmark Judgments: Section 381
Section 381 codifies the supreme legal effect of a succession certificate, enacting that it affords full and absolute indemnity to all debtors making payments in good faith to the certificate holder.
Section 381 is the shield that banks and financial institutions rely upon. Once presented with a genuine succession certificate under Section 381, a bank manager has no legal justification to withhold funds or question the family arrangements of the heirs; paying the holder gives the bank absolute statutory immunity.