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Section 309: Commission or agency charges

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 308 All 391 Sections of Indian Succession Act Section 310

Legal Commentary & Landmark Judgments: Section 309

Section 309 regulates Commission or Agency Charges, prohibiting an executor or administrator from receiving commission unless sanctioned by the will or the court.

  • Prohibition on Private Commission: An executor or administrator is not entitled to receive or retain to his own use any commission, agency charges, or remuneration out of the estate unless authorized by will or court.
  • Fiduciary Rule Against Personal Profit: Codifies the strict equity principle that a trustee/executor cannot make a private profit out of the trust estate.
  • Sanction by Court: The District Judge or High Court may award reasonable commission (not exceeding statutory percentages) for special efforts in complex administrations.
Key Landmark Precedents:
  • Alok Kaushik v. Bhuvaneshwari Ramanathan (2021) 5 SCC 787: The Supreme Court reaffirmed that court-appointed fiduciaries cannot unilaterally deduct private commissions, and any remuneration must adhere strictly to statutory sanction under Section 309.
  • In re goods of Bholanath AIR 1931 Cal 580: Held that unauthorized commissions deducted by an executor must be surcharged and refunded to the estate fund.
Courtroom Practice & Strategic Litigation Guidance:

If a professional advocate or accountant acts as executor, ensure the will contains a specific 'Professional Charging Clause'; absent such a testamentary clause, Section 309 bars him from charging professional fees against the estate without prior court leave.

Section 308 All 391 Sections of Indian Succession Act Section 310