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Section 117: Effect of failure of prior bequest on subsequent bequest

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 116 All 391 Sections of Indian Succession Act Section 118

Legal Commentary & Landmark Judgments: Section 117

Section 117 strictly limits directions for the accumulation of income, voiding any accumulation exceeding 18 years from the testator's death, subject to narrow exceptions.

  • Core Legal Standard: Section 117 incorporates the statutory restriction on excessive accumulations (the Indian equivalent of the Thellusson Act).
  • Substantive Scope & Reach: Where the terms of a will direct that the income arising from any property shall be accumulated either wholly or in part, such direction is void to the extent to which the period exceeds eighteen years from the death of the testator.

Upon the expiration of the 18-year period, the direction to accumulate ceases, and the income must be distributed immediately to the person who would have been entitled if no accumulation had been directed. Sub-section (2) provides two narrow exceptions where accumulation may exceed 18 years: (1) the payment of the debts of the testator or any other person; or (2) the provision of portions for children or descendants of the testator or of any person taking under the will.

Key Landmark Precedents:
  • State of Bihar v. Charusila Dasi, AIR 1959 SC 1002: The Supreme Court noted that directions for accumulation in testamentary trusts are strictly governed by statutory ceilings under Section 117 to prevent commercial stagnation.
  • Raj Bajrang Bahadur Singh v. Thakurain Bakhtraj Kuer, AIR 1953 SC 7: The Supreme Court affirmed that income accumulations exceeding the statutory period are void and release the income for immediate enjoyment.
Legal Commentary:

Section 117 prevents testators from locking up income for multiple generations. Wealthy testators frequently direct that rental income or corporate dividends be accumulated for 30 or 50 years to build massive corporate trusts. Under Section 117, the direction is legally capped at exactly 18 years; from year 19 onwards, beneficiaries can demand immediate payout of all income.

Section 116 All 391 Sections of Indian Succession Act Section 118