CHAPTER XII.--Of the Refunding of LegaciesCentral

Section 363 of The Indian Succession Act, 1925 in hindi

If the assets were not sufficient to satisfy all the legacies at the time of the testator's death, a legatee who has not received payment of his legacy must, before he can call on a satisfied legatee to refund, first proceed against the executor or administrator if he is solvent; but if the executor or administrator is insolvent or not liable to pay, the unsatisfied legatee can oblige each satisfied legatee to refund in proportion.

Summary

This rule requires an unpaid legatee to sue the executor first before asking other legatees for a refund, but only if the estate lacked funds from the very beginning.
A legatee is a person who is supposed to receive an inheritance.
If the estate did not have enough money for all legacies at death, an unpaid legatee must first proceed against the executor if the executor is solvent.
Solvent means having enough money to pay debts.
If the executor is insolvent or not liable to pay, the unpaid legatee can then force the satisfied legatees to refund money proportionally.

Practical examples

1An estate only has 50,000 rupees total, but the will gives 50,000 to Amit and 50,000 to Priya. The executor foolishly pays Amit the full 50,000. Priya gets nothing. Priya must first sue the executor for her share. Since the executor is a wealthy businessman and is solvent, Priya collects from him. She cannot bother Amit.

2Using the same scenario, Priya sues the executor, but the executor is completely bankrupt (insolvent). Because the estate lacked funds at the time of death and the executor cannot pay, Priya can legally demand that Amit refund a proportional amount of his legacy so they both get a fair share.

FAQ

1. Under Section 363 of The Indian Succession Act, 1925, who must an unpaid legatee sue first if the estate lacked funds from the start?

Under Section 363 of the 1925 Act, the unpaid legatee must first proceed against the executor or administrator, provided that the executor is solvent.

2. When can an unpaid legatee demand a refund from another legatee under Section 363 of the succession law?

Under Section 363 of the succession law, an unpaid legatee can oblige a satisfied legatee to refund in proportion if the assets were insufficient at death and the executor is insolvent or not liable to pay.

3. Does Section 363 of the 1925 Act apply if the estate originally had plenty of money?

No. Section 363 of The Indian Succession Act, 1925 explicitly applies only if the assets were not sufficient to satisfy all the legacies at the time of the testator's death.

Test yourself

Q1.Under Section 363 of The Indian Succession Act, 1925, what is the prerequisite for this entire rule to apply?

Q2.According to Section 363 of the succession law, who is the first target for an unpaid legatee seeking their money?

Q3.Under Section 363 of The Indian Succession Act, 1925, when is the unpaid legatee allowed to seek a refund from other satisfied legatees?

Q4.How much must the satisfied legatees refund under Section 363 of the 1925 Act?

362PreviousSection 362 When legatee, not satisfied or compelled to refund under section 361, cannot oblige one paid in full to refund.364NextSection 364 Limit to refunding of one legatee to another.

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