Where the thing specifically bequeathed is the right to receive something of value from a third party, and the testator himself receives it, the bequest is adeemed.
Illustrations:
(i) A bequeaths to B-
"the debt which C owes me":
"2,000 rupees which I have in the hands of D":
"the money due to me on the bond of E":
"my mortgage on the Rampur factory", All these debts are extinguished in A's lifetime, some with and some without his consent.
All the legacies are adeemed.
(ii) A bequeaths to B his interest in certain policies of life assurance. A in his lifetime receives the amount of the policies.
The legacy is adeemed.
Legal Commentary & Landmark Judgments: Section 154
Section 154 governs the ademption of a specific bequest of a right to receive something from a third party where the testator receives it himself during his lifetime.
When a testator bequeaths 'the debt of Rs. 5 Lakhs due to me on promissory note by X', advise the testator that if X repays the note during his lifetime, the legacy adeems under Section 154 unless a codicil is executed substituting an alternative bequest.