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Section 343: Procedure when no fund charged with, or appropriated to, annuity

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 342 All 391 Sections of Indian Succession Act Section 344

Legal Commentary & Landmark Judgments: Section 343

Section 343 prescribes the administrative procedure when an annuity is bequeathed without any specific fund charged with or appropriated to its payment, requiring the executor to set apart sufficient general assets for authorized investment.

  • Uncharged Testamentary Annuity: Applies where the testator grants a recurring annual sum but fails to designate or mortgage any specific immovable or movable property to secure it.
  • Appropriation of General Assets: The executor is legally bound to set apart a sufficient portion of the general estate and invest it in authorized government securities producing an annual yield equal to the annuity.
  • Ultimate Reversion to Residue: Upon the cessation or death of the annuitant, the appropriated investment fund immediately drops into the residuary estate for the benefit of the residuary legatee.
Key Landmark Precedents:
  • Harbin v. Masterman [1896] 1 Ch 351: The Court of Appeal held that an annuitant is entitled to have such an amount of government securities set aside as will produce the annual sum, and once set aside, the remainder of the estate may be distributed.
  • In re Parry; Scott v. Leak (1889) 42 Ch D 570: Affirmed that the executor must calculate the appropriation based on the prevailing yield of government securities, ensuring the annuitant is immune to private investment risks.
Courtroom Practice & Strategic Litigation Guidance:

Residuary legatees should file an application under Section 302 to compel the executor to appropriate a fund under Section 343, so that the balance of the estate can be released and distributed to them without waiting for the annuitant's death.

Section 342 All 391 Sections of Indian Succession Act Section 344