The term ‘Close relative’ means a relative as defined under the Companies Act, 1956/2013:
A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely:-
1. Father:
Provided that the term “Father” includes step-father.
2. Mother:
Provided that the term “Mother” includes step-mother.
3. Son:
Provided that the term “Son” includes step-son.
4. Son’s Wife.
5. Daughter.
6. Daughter’s husband.
7. Brother:
Provided that the term “Brother” includes step-brother.
8. Sister:
Provided that the term “Sister” includes step-sister.
The list given as above is very crystal clear. However, following needs to be understood.
Father, mother, son, brother and sister include the step-counterparts but there is no specific mention about step-daughter. Plain interpretation of the section indicates that step daughter is not a relative.
We get one more surprising thing here. In one case, a person can be relative of another in one way, but the reverse way, the person is not a relative.
For example, Mr. A has a step daughter Ms. B. So for Ms. B, Mr. A, being a step-father, is a relative. However, for Mr. A, Ms. B is not a relative as step-daughter is not a relative.
It is worth considering that son’s wife includes step son’s wife. However, daughter’s husband does not include step daughter’s husband.
On division of a Hindu Undivided Family, the members of the family, except included in the above list of relatives, cease to be relatives. Also, if we compare with Companies Act, 1956, the list of relatives is drastically cut short. The following table will show the comparison of respective acts.
| Act of 1956 | Act of 2013 |
U/s 6: MEANING OF "RELATIVE"
A person shall be deemed to be a relative of another, if, and only if,
(a) they are members of a Hindu undivided family ; or
(b) they are husband and wife ; or
(c) the one is related to the other in the manner indicated in Schedule IA.
|
U/s 2(77) ‘‘relative’’, with reference to any person, means anyone who is related to another, if—
(i) they are members of a Hindu Undivided Family;
(ii) they are husband and wife; or
(iii) one person is related to the other in such manner as may be prescribed.
|
| Schedule IA | As prescribed |
| Father | Father (including step-father) |
| Mother (including step-mother) | Mother (including step-mother) |
| Son (including step-son) | Son (including step-son) |
| Son's wife | Son's wife |
| Daughter (including step-daughter) | Daughter |
| Father's father | Daughter's husband |
| Father's mother | Brother (including step-brothers) |
| Mother's mother | Sister (including step-sister) |
| Mother's father | -x- |
| Son's son | -x- |
| Son's son's wife | -x- |
| Son's daughter | -x- |
| Son's daughter's husband | -x- |
| Daughter's husband | -x- |
| Daughter's son | -x- |
| Daughter's son's wife | -x- |
| Daughter's daughter | -x- |
| Daughter's daughter's husband | -x- |
| Brother (including step-brothers) | -x- |
| Brother's wife | -x- |
| Sister (including step-sister) | -x- |
| Sister's husband | -x- |
To conclude on a lighter note, the Companies Act, 1956 considered the joint family size concept, whereas, the Companies Act, 2013 as taken into account the modern family size, i.e. the nuclear family and has reduced the list of relatives from the long list to a small list.
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