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Section 346: Investment of residue bequeathed for life, with direction to invest in specified securities

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 345 All 391 Sections of Indian Succession Act Section 347

Legal Commentary & Landmark Judgments: Section 346

Section 346 directs the executor to adhere strictly to the testator's specified investment mandate when the residue is bequeathed for life with explicit instructions to invest in designated securities.

  • Express Testamentary Investment Clause: Applies where the testator explicitly specifies the particular class, category, or type of securities in which the residuary estate must be invested.
  • Binding Nature of Testator's Direction: The executor has no discretionary authority to depart from the specified investments, provided they remain lawful and available in the market.
  • Immunity for Prescribed Investments: An executor investing strictly in compliance with the testator's specified mandate is protected from liability for depreciation in value, absent fraud or bad faith.
Key Landmark Precedents:
  • Cadogan v. Earl of Essex (1854) 2 Drew 227: Held that where a testator prescribes a specific mode of investment, the executor is bound to carry out the mandate and is not at liberty to substitute alternative securities without judicial sanction.
  • In re Smith; Smith v. Thompson [1896] 1 Ch 71: Established that an executor who faithfully follows the testator's explicit investment direction is protected from devastavit unless guilty of willful misconduct.
Courtroom Practice & Strategic Litigation Guidance:

Executors faced with obsolete or non-existent securities designated in an ancient will must not invest arbitrarily; they must approach the High Court under Section 302 or Section 34 of the Indian Trusts Act for directions to substitute modern trustee securities.

Section 345 All 391 Sections of Indian Succession Act Section 347