Indian Succession Act,1925
Act No : 39
Section :
Application of moveable property to payment of debts where domicilenot in India.
324. Application of moveable property to payment of debts wheredomicile not in India.-(1) If the domicile of the deceased was not in1*[India], the application of his moveable property to the payment ofhis debts is to be regulated by the law of 1*[India]. (2) No creditor who has received payment of a part of his debt byvirtue of sub-section (1) shall be entitled to share in the proceedsof the immoveable estate of the deceased unless he brings such paymentinto account for the benefit of the other creditors. (3) This section shall not apply where the deceased was a Hindu,Muhammadan, Buddhist, Sikh or Jaina or an exempted person. Illustration A dies, having his domicile in a country where instruments underseal have priority over instruments not under seal leaving moveableproperty to the value of 5,000 rupees, and immoveable property to thevalue of 10,000 rupees, debts on instruments under seal to the amountof 10,000 rupees, and debts on instruments not under seal to the sameamount. The creditors holding instruments under seal receive half oftheir debts out of the proceeds of the moveable estate. The proceedsof the immoveable estate are to be applied in payment of the debts oninstruments not under seal until one-half of such debts has beendischarged. This will leave 5,000 rupees which are to be distributedrateably amongst all the creditors without distinction, in proportionto the amount which may remain due to them.
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