Indian Succession Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 353 of Indian Succession Act: Testamentary & Estate Administration Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
The rate of interest shall be four per cent. per annum in all cases except when the testator was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person, in which case it shall be six per cent. per annum.
Section 353 prescribes the statutory benchmark rate of interest on testamentary legacies, capping the default statutory entitlement at six per cent per annum unless varied by the testator.
Statutory Rate of Six Per Cent: The fixed statutory rate applicable to all delayed legacies, annuities in arrear, or refund claims under the Act is six per cent (6%) per annum.
Overriding Testamentary Autonomy: The testator may expressly stipulate a higher or lower rate of interest in the will, which supersedes the default statutory rate.
Distinction from Commercial Interest: The statutory rate under Section 353 operates independently of the discretionary commercial interest provisions of Section 34 of the Code of Civil Procedure.
Key Landmark Precedents:
Wood v. Penoyre (1807) 13 Ves 325: Held that the statutory rate of interest on legacies is fixed by law to avoid fluctuating market assessments during executorial accounting.
Chhotey Lal v. Ram Chandra, AIR 1944 All 210: The Allahabad High Court held that in a testamentary suit for recovery of a legacy, the court has no jurisdiction to enhance the interest rate beyond 6% per annum in the absence of a higher rate stipulated in the will.
Courtroom Practice & Strategic Litigation Guidance:
Testamentary draftsmen should specify floating or bank-linked interest rates in wills if protection against high inflation is desired. In litigation, calculate legacy arrears strictly at 6% under Section 353 to ensure decree compliance without risk of appellate modification.
Legal Commentary & Landmark Judgments: Section 353
Section 353 prescribes the statutory benchmark rate of interest on testamentary legacies, capping the default statutory entitlement at six per cent per annum unless varied by the testator.
Testamentary draftsmen should specify floating or bank-linked interest rates in wills if protection against high inflation is desired. In litigation, calculate legacy arrears strictly at 6% under Section 353 to ensure decree compliance without risk of appellate modification.