Succession Act, 1925 — Section 154: Ademption of specific bequest of right to receive something from third party

154. Ademption of specific bequest of right to receive something from third party. Where the thing specifically bequeathed is the right to receive something of value from a third party, and the testator himself receives it, the bequest is adeemed. Illustrations

(i)A bequeaths to B― “the debt which C owes me”: “2, 000 rupees which I have in the hands of D”: “the money due to me on the bond of E”: “my mortgage on the 1[Rahimyarkhan] factory”. All these debts are extinguished in A’s lifetime, some with and some without his consent. All the legacies are adeemed.

(ii)A bequeaths to B his interest in certain policies of his life assurance. A in his lifetime receives the amount of the policies. The legacy is adeemed. 155. Ademption pro tanto by testator’s receipt of part of entire thing specifically bequeathed. The receipt by the testator of a part of an entire thing specifically bequeathed shall operate as an ademption of the legacy to the extent of the sum so received. Illustration A bequeaths to B “the debt due to me by C”. The debt amounts to 10, 000 rupees. C pays to A 5,000 rupees the one-half of the debt. The legacy is revoked by ademption, so far as regards the 5,000 rupees received by A. 156. Ademption pro tento by testator’s receipt of portion of entire fund of which portion has been specifically bequeathed. If a portion of an entire fund or stock is specifically bequeathed, the receipt by the testator of a portion of the fund or stock shall operate as an ademption only to the extent of the amount so received; and the residue of the fund or stock shall be applicable to the discharge of the specific legacy. Illustration A bequeaths to B one-half of the sum of 10,000 rupees due to him from W. A in his lifetime receives 6,000 rupees, part of the 10,000 rupees. The 4, 000 rupees which are due from W to A at the time of his death belong to B under the specific bequest. 157. Order of payment where portion of fund specifically bequeathed to one legatee, and legacy charged. on same fund to another, and, testator having received portion of that fund, remainder insufficient to pay both legacies. Where a portion of a fund is specifically bequeathed to one legatee, and a legacy charged on the same fund is bequeathed to another legatee, then, if the testator receives a portion of that fund, and the remainder of the fund is insufficient to pay both the specific and the demonstrative legacy, the specific legacy shall be paid first, and the residue (if any) of the fund shall be applied so far as it will extend in payment of the demonstrative legacy, and the rest of the demonstrative legacy shall be paid out of the general assets of the testator. Illustration A bequeaths to B 1,000 rupees, part of the debt of 2,000 rupees due to him from W. He also bequeaths to C 1,000 rupees to be paid out of the debt due to him from W. A afterwards receives