Home  /  Indian Succession Act  /  Section 327

Section 327: Abatement of general legacies

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 326 All 391 Sections of Indian Succession Act Section 328

Legal Commentary & Landmark Judgments: Section 327

Section 327 governs the Abatement of General Legacies where estate assets are insufficient to pay all legacies in full.

  • Rateable Abatement of General Legacies: If the assets of the estate after payment of debts are not sufficient to pay all legacies in full, general legacies abate rateably among themselves.
  • Proportional Reduction: Each general legatee suffers an equal percentage reduction of his bequest to match available funds.
  • No Priority Among General Legatees: General cash bequests have no priority among themselves unless the testator has explicitly declared that a particular legacy shall be paid first.
Key Landmark Precedents:
  • Ranganathan Chettiar v. Periakaruppan Chettiar AIR 1957 SC 815: The Supreme Court held that under Section 327, general legacies abate pari passu upon an asset shortfall, and an executor cannot prefer one relative over another without explicit will instructions.
  • Subramaniam v. Ramaswamy (1932) 34 BOMLR 1612: Affirmed that general pecuniary legacies bear the entire initial brunt of estate insolvency under Section 327.
Courtroom Practice & Strategic Litigation Guidance:

If a will gives Rs. 10 Lakhs to A and Rs. 5 Lakhs to B, but only Rs. 9 Lakhs remains after paying debts (a 40% shortfall), calculate a 40% abatement under Section 327: pay Rs. 6 Lakhs to A and Rs. 3 Lakhs to B; the executor cannot pay A in full and give B nothing.

Section 326 All 391 Sections of Indian Succession Act Section 328