Indian Succession Act,1925
Act No : 39
Section :
Exoneration of specific legatee's stock in joint-stock company.
170. Exoneration of specific legatee's stock in joint-stockcompany.-In the absence of any direction in the will, where there is aspecific bequest of stock in a joint-stock company, if any call orother payment is due from the testator at the time of his death inrespect of the stock, such call or payment shall, as between thetestator's estate and the legatee, be borne by the estate; but, if anycall or other payment becomes due in respect of such stock after thetestator's death, the same shall, as between the testator's estate andthe legatee, be borne by the legatee, if he accepts the bequest. Illustrations (i) A bequeaths to B his shares in a certain railway. At A'sdeath there was due from him the sum of 100 rupees in respect of eachshare, being the amount of a call which had been duly made, and thesum of five rupees in respect of each share, being the amount ofinterest which had accrued due in respect of the call. These paymentsmust be borne by A's estate. (ii) A has agreed to take 50 shares in an intended joint-stockcompany, and has contracted to pay up 100 rupees in respect of eachshare, which sum must be paid before his title to the shares can becompleted. A bequeaths these shares to B. The estate of A must makegood the payments which were necessary to complete A's title. (iii) A bequeaths to B his shares in a certain railway. B acceptsthe legacy. After A's death, a call is made in respect of the shares.B must pay the call. (iv) A bequeaths to B his shares in a joint-stock company. Baccepts the bequest. Afterwards the affairs of the company are woundup, and each shareholder is called upon for contribution. The amountof the contribution must be borne by the legatee. (v) A is the owner of ten shares in a railway company. At ameeting held during his lifetime a call is made of fifty rupees pershare, payable by three instalments. A bequeaths his shares to B, anddies between the day fixed for the payment of the first and the dayfixed for the payment of the second instalment, and without havingpaid the first instalment. A's estate must pay the first instalment,and B, if he accepts the legacy, must pay the remaining instalments.
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