The Indian Succession Act, 1925

Chapter XII.- Of the Refunding of Legacies

356. Refund of legacy paid under Court's orders.-

When an executor or administrator has paid a legacy under the order of a Court, he is entitled to call upon the legatee to refund in the event of the assets proving insufficient to pay all the legacies.

357. No refund if paid voluntarily.-

When an executor or administrator has voluntarily paid a legacy, he cannot call upon a legatee to refund in the event of the assets proving insufficient to pay all the legacies.

358. Refund when legacy has become due on performance of condition within further time allowed under section 137.-

When the time prescribed by the will for the performance of a condition has elapsed, without the condition having been performed, and the executor or administrator has thereupon, without fraud, distributed the assets; in such case, if further time has been allowed under section 137 for the performance of the condition, and the condition has been performed accordingly, the legacy cannot be claimed from the executor or administrator, but those to whom he has paid it are liable to refund the amount.

359. When each legatee compellable to refund in proportion.-

When the executor or administrator has paid away the assets in legacies, and he is afterwards obliged to discharge a debt of which he had no previous notice, he is entitled to call upon each legatee to refund in proportion.

360. Distribution of assets.-

Where an executor or administrator has given such notices as the High Court may, by any general rule, prescribe or, if no such rule has been made, as the High Court would give in an administration-suit, for creditors and others to sent in to him their claims against the state of the deceased, he shall, at the expiration of the time therein named for sending in claims, be at liberty to distribute the assets, or any part thereof, in discharge of such lawful claims as he knows of, and shall not be liable for the assets so distributed to any person of whose claim he shall not have had notice at the time of such distribution:

Provided that nothing herein contained shall prejudice the right of any creditor or claimant to follow the assets, or any part thereof, in the hands of the persons who may have received the same respectively.

361. Creditor may call upon legatee to refund.-

A creditor who has not received payment of his debt may call upon a legatee who has received paymeni of his legacy to refund, whether the assets of the testator's estate were or were not sufficient at the time of his death to pay both debts and legacies; and whether the payment of the legacy by the executor or administrator was voluntary or not.

362. When legatee, not satisfied or compelled to refund under section 361, cannot oblige one paid in full to refund.-

If the assets were sufficient to satisfy all the legacies at the time of the testator's death, a legatee who has not received payment of his legacy, or who has been compelled to refund under section 361, cannot oblige one who has received payment in full to refund, whether the legacy were paid to him with or without suit, although the assets have subsequently become deficient by the wasting of the executor.

363. When unsatisfied legatee must first proceed against executor, if solvent.-

If the assets were not sufficient to satisfy all the legacies at the time of the testator's death, a legatee who has not received payment of his legacy must, before he can call on a satisfied legatee to refund, first proceed against the executor or administrator if he is solvent; but if the executor or administrator is insolvent or not liable to pay, the unsatisfied legatee can oblige each satisfied legatee to refund in proportion.

364. Limit to refunding of one legatee to another.-

The refunding of one legatee to another shall not exceed the sum by which the satisfied legacy ought to have been reduced if the estate had been properly administered. Illustration A has bequeathed 240 rupees, to B, 480 rupees to C, and 720 rupees to D. The assets are only 1,200 rupees and, if properly administered, would give 200 rupees to B, 400 rupees to C and 600 rupees to D. C and D have been paid their legacies in full leaving nothing to B. B can oblige C to refund 80 rupees, and D to refund 120 rupees.

365. Refunding to be without interest.-

The refunding shall in all cases be without interest.

366. Residue after usual payments to be paid to residuary legatee.-

The surplus or residue of the deceased's property, after payment of debts and legacies, shall be paid to the residuary legatee when any has been appointed by the will.

367. Transfer of assets from India to executor or administrator in country of domicile for distribution.-

Where a person not having his domicile in ¹[India] has died leaving assets both in if ¹[India] and in the country in which he had his domicile at the time of his death, and there has been a grant of probate or letters of administration in ¹[India] with respect to the assets there a grant of administration in the country of domicile with respect to the assets in that country, the executor or administrator, as the case may be, in ¹[India], after having given such notices as are mentioned in section 360, and after having discharged, at the expiration of the time therein named, such lawful claims as he knows of, may, instead of himself distributing any surplus or residue of the deceased's property to persons residing out of ¹[India] who are entitled thereto, transfer, with the consent of the executor or administrator, as the case may be, in the country of domicile, the surplus or residue to him for distribution to those persons.

1. Subs. by Act 3 of 1951, s. 3 and the Schedule, for "the States".

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