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Report No. 110

V. Legacies

41.32. Section 326-Contingent liabilities.-

According to section 326, if the estate of the deceased is subject to any contingent liabilities, an executor or administration is not bound to pay any legacy without a sufficient indemnity to meet the liabilities whenever they may become due.

The section needs no change.

41.33. Section 327-Abatement of general legacies.-

Section 327 provides that if the assets, after payment of debts, necessary expenses and specific legacies, are not sufficient to pay all the general legacies in full, the latter shall abate or be diminished in equal proportions, and, in the absence of any direction to the contrary in the will, the executor has no right to pay one legatee in preference to another, or to retain any money on account of a legacy to himself or to any person for whom he is a trustee.

The section needs no change.

41.34. Section 328-No abatement of specific legacies.-

Section 328 provides that where there is specific legacy, and the assets are sufficient for the payment of debts and necessary expenses, the thing specified must be delivered to the legatee without any abatement.

This section also needs no change.

41.35. Section 329-Preferential claim in respect of demonstrative legacy.-

Section 329 provides as under:-

"329. Where there is a demonstrative legacy and the assets are sufficient for the payment of debts and necessary expenses, the legatee has a preferential claim for payment of his legacy out of the fund from which the legacy is directed to be paid until such fund is exhausted and if, after the fund is exhausted, part of the legacy still remains unpaid, he is entitled to rank for the remainder against the general assets as for legacy of the amount of such unpaid remainders."

The section needs no change, having created no problem.

41.36. Section 330, illustration to be revised.-

Section 330 provides that if the assets are not sufficient to answer the debts and the specific legacies, an abatement shall be made from the latter rate ably in proportion to their respect he amounts. The illustration reads as under:-

Illustration

"A has bequeathed to B a diamond ring valued at 500 rupees, and to C a horse, valued at 1,000 rupees. It is found necessary to sell all the effects of the testator; and his assets, after payment of debts, are only 1,000 rupees. Of this sum rupees 333-5-4 are to be paid to B, and rupees 666-10-8 to C."

The illustration to the section should be revised, so as to express the amounts in decimal coinage. We recommend accordingly.

41.37. Section 331-A legacy for life.-

Section 331 provides that for the purpose of abatement, a legacy for life, a sum appropriate by the will to produce an annuity, and the value of an annuity when no sum has been appropriated to produce it, shall be treated as general legacies.

The section needs no change.



The Indian Succession Act, 1925 Back




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