Where the interest or produce of a fund is bequeathed to any person, and the will affords no indication of an intention that the enjoyment of the bequest should be of limited duration, the principal, as well as the interest, shall belong to the legatee.
Illustrations:
(i) A bequeaths to B the interest of his 5 per cent. promissory notes of the Central Government. There is no other clause in the will affecting those securities. B is entitled to A's 5 per cent. promissory notes of the Central Government.
(ii) A bequeaths the interest of his 51/2 per cent. promissory notes of the Central Government to B for his life, and after his death to C. B is entitled to the interest of the notes during his life, and C is entitled to the notes upon B's death.
(iii) A bequeaths to B the rents of his lands at X. B is entitled to the lands.
Legal Commentary & Landmark Judgments: Section 172
Section 172 establishes the statutory rule that a bequest of the interest or produce of an entire fund, without limitation as to time, carries the corpus of the fund itself.
In will construction suits where a will states 'I give the rent and profits of my commercial shop to my son X' without adding 'for life' or naming a remainderman, invoke Section 172; son X is the full absolute owner of the shop, not a mere life-tenant.