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Section 341: Investment of sum bequeathed, where legacy, not specific, given for life

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 340 All 391 Sections of Indian Succession Act Section 342

Legal Commentary & Landmark Judgments: Section 341

Section 341 mandates that where a non-specific sum of money is bequeathed to a person for life, the executor must invest the sum in authorized trustee securities to generate income for the life tenant and preserve capital for the remainderman.

  • Non-Specific Pecuniary Bequest for Life: Applies to general pecuniary bequests where a capital sum is given to a beneficiary for their lifetime with a gift over to another upon death.
  • Statutory Mandate for Investment: The executor is strictly prohibited from paying the capital corpus to the life tenant; the principal must be invested in government securities or authorized investments under Section 20 of the Indian Trusts Act, 1882.
  • Allocation of Returns: The interest or income generated from the authorized investment belongs exclusively to the life tenant during their lifetime, while the corpus remains preserved for the ultimate beneficiary.
Key Landmark Precedents:
  • In re Campbell; Campbell v. Campbell [1893] 3 Ch 468: Held that where a pecuniary legacy is given to a person for life with remainder over, it is the duty of the executors to invest the money in trustee securities and pay the income to the tenant for life.
  • Narasimha v - Venkatalakshmamma, AIR 1928 Mad 713: The Madras High Court held that an executor paying the corpus of a life estate directly to the life tenant commits devastavit and remains personally liable to the remainderman for the full amount.
Courtroom Practice & Strategic Litigation Guidance:

Remaindermen suspecting that executors intend to deliver capital funds directly to a life tenant should immediately apply under Section 302 of the Act or institute a suit under Order XXXIX Rules 1 and 2 CPC for an injunction directing deposit in authorized government securities or the court registry.

Section 340 All 391 Sections of Indian Succession Act Section 342