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Section 354: No interest on arrears of annuity within first year after testator's death

Indian Succession Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1925
Section 353 All 391 Sections of Indian Succession Act Section 355

Legal Commentary & Landmark Judgments: Section 354

Section 354 enacts an express statutory bar against the recovery of interest on arrears of an annuity during the first year following the testator's demise.

  • First-Year Moratorium for Annuities: No interest is payable upon any arrears of an annuity that accrue during the first twelve calendar months next after the testator's death.
  • Subsequent Arrears Eligibility: Interest becomes chargeable on defaulted annuity installments only after the expiration of the first year, provided a demand has been made.
  • Protection of Estate Administration: Prevents annuitants from compounding debt obligations against an estate while the executor is compiling assets and ascertaining estate liabilities.
Key Landmark Precedents:
  • Booth v. Coulton (1870) LR 5 Ch App 684: Held that arrears of an annuity do not carry interest as of course, and under statutory rules, no interest is claimable on the first year's installments.
  • Torre v. Browne (1855) 5 HLC 555: The House of Lords established that interest on annuity arrears is not awarded unless there has been gross misconduct or deliberate evasion by the personal representative.
Courtroom Practice & Strategic Litigation Guidance:

Counsel defending executors must strike out any claim by an annuitant for interest on annuity sums relating to the first year after demise, citing Section 354 as an absolute statutory bar.

Section 353 All 391 Sections of Indian Succession Act Section 355