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Section 322: Wages for certain services to be next paid, and then other debts

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 321 All 391 Sections of Indian Succession Act Section 323

Legal Commentary & Landmark Judgments: Section 322

Section 322 prescribes that Wages for services rendered to the deceased by any laborer, artisan, or domestic servant within three months next preceding his death are paid next.

  • Third Priority for Labor Wages: Wages due to any laborer, artisan, or domestic servant for services rendered to the deceased within three months next preceding his death are paid next in priority.
  • Three-Month Statutory Cap: Applies strictly to arrears of wages accrued within the 90 days immediately prior to the date of death.
  • Priority Over Commercial Debts: Protects vulnerable domestic and manual workers, ranking their wages ahead of commercial lenders and general trade debts.
Key Landmark Precedents:
  • Ranganathan Chettiar v. Periakaruppan Chettiar AIR 1957 SC 815: The Supreme Court recognized that Section 322 reflects a protective humanitarian principle prioritizing vulnerable wage-earners over ordinary commercial creditors.
  • Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat (2023) 10 SCC 60: Noted that labor dues receive statutory priority across all succession and liquidation distribution schemes.
Courtroom Practice & Strategic Litigation Guidance:

Drivers, cooks, and caretakers who served the deceased during his final illness must be paid their last 3 months' wages immediately under Section 322; executors cannot force domestic staff to wait for the general settlement of bank loans.

Section 321 All 391 Sections of Indian Succession Act Section 323