(1) If the deceased has died intestate and was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person, administration of his estate may be granted to any person who, according to the rules for the distribution of the estate applicable in the case of such deceased, would be entitled to the whole or any part of such deceased's estate.
(2) When several such persons apply for such administration, it shall be in the discretion of the Court to grant it to any one or more of them.
(3) When no such person applies, it may be granted to a creditor of the deceased.
Legal Commentary & Landmark Judgments: Section 218
Section 218 governs the grant of letters of administration for Hindus, Muslims, Buddhists, Sikhs, and Jainas dying intestate, providing that administration may be granted to any person entitled to the estate under their personal law of intestate succession.
Sub-section (2) provides that when several persons apply, the court possesses discretion to grant administration to any one or more of them. Under sub-section (3), when no such person applies, administration may be granted to a creditor of the deceased. Crucially, the court does not determine complex questions of title under Section 218; it grants administration to the person possessing the paramount statutory right under personal succession rules (e.g., Class I heirs under the Hindu Succession Act).
Section 218 is the primary vehicle for obtaining letters of administration when a Hindu dies without a will leaving substantial disputed assets or uncollected debts. The applicant must demonstrate that they are a Class I legal heir. Where rival heirs apply, the court will either appoint them jointly or select the heir having the largest beneficial stake.