Indian Succession Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 175 of Indian Succession Act: Testamentary & Estate Administration Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
Where an annuity is bequeathed, but the assets of the testator are not sufficient to pay all the legacies given by the will, the annuity shall abate in the same proportion as the other pecuniary legacies given by the will.
Section 175 empowers an annuitant to have a sufficient fund set apart out of the testator's estate to secure the regular payment of the annuity.
Right to Capital Security: Where an annuity is given by will and no specific fund is charged with its payment, the annuitant is entitled to have a sufficient fund invested in trustee securities to produce the annuity.
Protection of Annuitant: Prevents residuary legatees from dissipating or distributing the estate assets before the annuitant's lifelong income is permanently secured.
Devolution of Surplus Fund: Upon the death of the annuitant, the invested fund falls back into the residuary estate and is distributed to the residuary legatees.
Key Landmark Precedents:
F.S. Gandhi v. Commissioner of Wealth Tax (1990) 3 SCC 624: The Supreme Court affirmed that Section 175 gives the annuitant a legally enforceable right to compel executors to set apart and invest an adequate capital sum to secure regular payments.
Ranganathan Chettiar v. Periakaruppan Chettiar AIR 1957 SC 815: Held that setting apart an annuity fund under Section 175 takes precedence over distributions to general and residuary legatees.
Courtroom Practice & Strategic Litigation Guidance:
If executors attempt to distribute estate assets to residuary heirs while an annuity remains active, counsel for the annuitant should file an urgent application under Section 175 for an injunction restraining distribution until an escrow fund is created.
Legal Commentary & Landmark Judgments: Section 175
Section 175 empowers an annuitant to have a sufficient fund set apart out of the testator's estate to secure the regular payment of the annuity.
If executors attempt to distribute estate assets to residuary heirs while an annuity remains active, counsel for the annuitant should file an urgent application under Section 175 for an injunction restraining distribution until an escrow fund is created.