All demands whatsoever and all rights to prosecute or defend any action or special proceeding existing in favour of or against a person at the time of his decease, survive to and against his executors or administrators;
except causes of action for defamation, assault, as defined in the Indian Penal Code (45 of 1860), or other personal injuries not causing the death of the party;
and except also cases where, after the death of the party, the relief sought could not be enjoyed or granting it would be nugatory.
Illustrations:
(i) A collision takes place on a railway in consequence of some neglect or default of an official, and a passenger is severely hurt, but not so as to cause death. He afterwards dies without having brought any action. action does not survive.
(ii) A sues for divorce. A dies.
The cause of action does not survive to his representative.
Legal Commentary & Landmark Judgments: Section 306
Section 306 codifies the statutory survival of causes of action, providing that all demands and rights of action survive to and against the executor or administrator, except purely personal torts under the maxim actio personalis moritur cum persona.
The section carves out an explicit, narrow statutory exception reflecting the maxim actio personalis moritur cum persona (a personal right of action dies with the person): causes of action for defamation, assault, or other personal injuries not causing the death of the party, and cases where the recovery of damages is associated with the person itself, do NOT survive. All contractual rights, property disputes, debts, and torts causing damage to estate property survive unimpaired.
Section 306 is vital in civil litigation upon the death of a litigant. If a plaintiff dies while suing for defamation or simple bodily assault, the suit abates completely under Section 306. But if the suit involves recovery of money, breach of contract, property damages, or economic injury, the executor or administrator has the statutory right to be substituted under Order XXII Rule 3 CPC and continue the prosecution.