CHAPTER XII.--Of the Refunding of LegaciesCentral

Section 364 of The Indian Succession Act, 1925 in hindi

The refunding of one legatee to another shall not exceed the sum by which the satisfied legacy ought to have been reduced if the estate had been properly administered. Illustrations A has bequeathed 240 rupees, to B, 480 rupees to C, and 720 rupees to D. The assets are only 1,200 rupees and, if properly administered, would give 200 rupees to B, 400 rupees to C and 600 rupees to D. C and D have been paid their legacies in full leaving nothing to B. B can oblige C to refund 80 rupees, and D to refund 120 rupees.

Summary

This provision caps the amount one legatee, meaning a person receiving an inheritance, can force another to refund.
A refund forced by an unpaid heir cannot exceed the amount by which the paid heir's share should have been reduced during a proper distribution.
This ensures that a person who received their share in full only pays back the exact amount they were overpaid due to the estate's shortage.

Practical examples

1A grandfather leaves 200 dollars to John, 400 dollars to Mary, and 600 dollars to Luke. The total estate only has 600 dollars, but the executor mistakenly gives 400 dollars to Mary and 200 dollars to Luke. John gets nothing. John can only force Mary to refund her exact overpayment amount, which is 200 dollars, not her whole inheritance.

2An uncle leaves equal shares of 1000 dollars to two nieces. The estate only has 1000 dollars total. The executor pays the first niece the full 1000 dollars. The second niece can force the first niece to refund exactly 500 dollars.

FAQ

1. Under Section 364 of the Indian Succession Act 1925, how much can I ask another legatee to refund to me?

Under Section 364 of the Indian Succession Act 1925, you can only ask them to refund the specific amount by which their legacy should have been reduced if the estate was administered correctly.

2. Does Section 364 of the inheritance law force a legatee to return their entire gift?

No, Section 364 of the inheritance law only requires them to return the excess amount they received above what their fair share should have been.

3. What happens if an estate is properly administered under Section 364 of the succession rules?

If the estate is properly administered, there are no overpayments, so Section 364 of the succession rules would not require any legatee to refund money to another.

Test yourself

Q1.Under Section 364 of The Indian Succession Act, 1925, what is the maximum amount one legatee can force another legatee to refund?

Q2.Which situation directly triggers the rule in Section 364 of the 1925 Succession Act?

Q3.According to the text of Section 364 of the Indian Succession law, what is the standard used to calculate the refund limit?

Q4.If an estate is short on money, how does Section 364 of the inheritance act protect a legatee who already received their share?

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