Section 328: Non-abatement of specific legacy when assets sufficient to pay debts

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925

Legal Commentary & Landmark Judgments: Section 328

Section 328 codifies the paramount rule of Non-Abatement of Specific Legacies, providing that specific legacies do not abate until general legacies are completely exhausted.

  • Total Immunity from General Abatement: Where the assets of the estate are insufficient to pay all debts and legacies, specific legacies do not abate until all general legacies have been completely wiped out.
  • Exhaustion of General Fund First: General cash legacies and the residuary estate must be entirely depleted to pay debts before a specific legacy can be touched.
  • Proportionate Abatement Among Themselves: Only if the general estate is completely exhausted and debts still remain do specific legacies abate rateably among themselves.
Key Landmark Precedents:
  • Ranganathan Chettiar v. Periakaruppan Chettiar AIR 1957 SC 815: The Supreme Court delivered an authoritative ruling on Section 328, affirming that specific legacies are statutorily insulated from abatement and enjoy absolute preference over general cash bequests.
  • Subramaniam v. Ramaswamy (1932) 34 BOMLR 1612: The Privy Council affirmed that specific legatees are entitled to receive their specific assets intact so long as general funds suffice to pay creditors.
Courtroom Practice & Strategic Litigation Guidance:

In estate insolvency disputes, defend specific legatees (e.g. someone left a specific house or car) by citing Section 328; the executor must exhaust all bank accounts, cash, and general legacies before he can sell the specifically bequeathed house to pay debts.