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Section 321: Expenses to be paid next after such expenses

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 320 All 391 Sections of Indian Succession Act Section 322

Legal Commentary & Landmark Judgments: Section 321

Section 321 prescribes that the Expenses of obtaining Probate or Letters of Administration must be paid next after funeral expenses.

  • Second Priority in Waterfall: The expenses of obtaining probate or letters of administration, including court fees, advertising costs, and legal fees, must be paid next after funeral expenses.
  • Super-Priority Over Debts: Takes precedence over all ordinary creditors, promissory notes, trade debts, and tax liabilities.
  • Reimbursement of Representative: The executor or administrator is entitled to retain estate funds to cover all taxed legal costs of obtaining the grant.
Key Landmark Precedents:
  • Ranganathan Chettiar v. Periakaruppan Chettiar AIR 1957 SC 815: The Supreme Court affirmed that probate costs under Section 321 enjoy statutory super-priority over all estate debts to ensure estates can be lawfully administered.
  • Chiranjilal Shrilal Goenka v. Jasjit Singh (1993) 2 SCC 507: Held that expenses incurred by executors in bona fide probate litigation are payable out of the estate under Section 321.
Courtroom Practice & Strategic Litigation Guidance:

Executors who pay substantial court fees or litigation expenses out of pocket can reimburse themselves immediately from estate recoveries under Section 321; general creditors cannot challenge this reimbursement.

Section 320 All 391 Sections of Indian Succession Act Section 322