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Smart Summary

Factual and Procedural Background

This summons was filed by the plaintiffs seeking directions from the Court regarding the administration of the estate of the late Ramchandra Lalji, who died in 1925, and the construction of his will dated 12th August 1924. The primary dispute concerns the interpretation of clauses 4 and 7 of the will, which deal with the distribution of rents from a property located at Shaikh Memon Street.

Legal Issues Presented

  1. Whether the legacies bequeathed by clauses 4 and 7 of the will in favour of the daughters and wife are specific legacies or demonstrative legacies under the Succession Act.
  2. The effect of any change in the rental income of the Shaikh Memon Street property on the amount payable under these legacies.

Arguments of the Parties

Plaintiffs' Arguments

  • The legacies in favour of the daughters and wife are demonstrative legacies.
  • Rely on the canon of construction that in case of doubt, a legacy should be construed as demonstrative rather than specific.
  • Refer to decisions such as 13 Bom LR 3194 and 4 Ves 177 supporting this view.

Defendant's Arguments

  • On proper construction of clauses 4 and 7, the bequests are specific legacies.
  • Reference to Section 142 of the Succession Act defining ‘specific legacy’ as a bequest of a specified part of the property distinguished from other parts.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Section 142 of the Succession Act Definition of ‘specific legacy’ as a bequest of a specified part of the testator's property. Used to determine whether the bequests in the will constitute specific legacies.
Section 150 of the Succession Act Definition of ‘demonstrative legacy’ as a legacy payable out of a particular fund or stock. Considered to distinguish demonstrative legacies from specific legacies based on the source of payment.
13 Bom LR 3194 Canon of construction favoring demonstrative legacy in case of doubt. Referenced by plaintiffs but found not directly applicable to the facts of this will.
4 Ves 177 Support for construction of legacies as demonstrative in ambiguous cases. Referenced by plaintiffs but not deemed decisive by the Court for this will.
Bai Bhicaji v. Bai Dinbai Recognition that rents of immoveable property may give rise to specific legacies. Supported the Court’s conclusion that the bequests are specific legacies.
Williams on Executors (12th Edn.), Vol. 2, p. 755 Legal commentary distinguishing specific and demonstrative legacies with illustrations. Guided the Court’s understanding of rent-based legacies and their classification.

Court's Reasoning and Analysis

The Court examined the language of clauses 4 and 7 of the will and the relevant statutory definitions under Sections 142 and 150 of the Succession Act. It noted that the testator expressly mentioned the average monthly rent of the Shaikh Memon Street property and then directed specific monthly sums to be paid from that rent to his wife and daughters for their lifetimes and for family expenses. The Court emphasized that the testator’s intention was to deal with a specific fund—the rents from the particular property—and not to create a mere annuity payable out of any source.

The Court distinguished between specific and demonstrative legacies by focusing on whether the legacy constituted a bequest of a particular property or merely a direction to pay from a fund. It found that the bequests here were specific because they related directly to rents from a known immoveable property, supported by the statutory illustration and relevant case law such as Bai Bhicaji v. Bai Dinbai.

The Court further considered the practical effect of the reduced rents (now about Rs. 500 instead of Rs. 1,000) and held that the legacies would abate proportionately to the decrease in rental income, reflecting the basis of the bequest.

Holding and Implications

The Court held that the bequests contained in clause 7 of the will are specific legacies.

The legacies to the wife and daughters are to be paid from the rents of the Shaikh Memon Street property, and the amounts payable shall abate proportionately if the rental income decreases. Costs between attorney and client are to be paid out of the estate. No broader precedent was established beyond the direct application to the construction of this will and the administration of the estate.

    Bhagirathibai v. Advocate General

    1. This Summons has been taken out by the plaintiffs to obtain directions from the Court for the administration of the estate of the late Ramchandra Lalji who died in 1925 and the construction of, his will dated 12th August 1924.

    2. Question No. 1. — The first question is about the construction of clauses 4 and 7 of the will, relevant portions whereof run as under:

    4… The average montly rent of my said Shaikh Memon Street property is about Rs. 1,000.

    7. I direct my executors and trustees to pay cat of the said monthly rents of my said Shaikh Memon Street property a sum of Rs. 125 to each of my three daughters and Rs. 125 to my wife Bhagirthibai every month for their respective lifetime and Rs. 600 every month to my wife and on my wife's death to my daughter Soonderbai for the family expenses for food, rent etc. of my wife and three daughters with their respective husbands or the survivors or survivor of them and if for any reason my three daughters and my wife live separately then the said amount is to be distributed equally amongst the four or the survivors or survivor of them.

    3. On behalf of the plaintiffs it is urged that the legacies bequeathed by this clause in favour of the daughters and wife are demonstrative legacies. Under the will, the residue goes to charity and therefore the defendant, on the other hand submits that on a proper construction of the above clauses there is a specific bequest. Section 142 of the Succession Act, defines ‘specific legacy’ in the following terms:

    Where the testator bequeaths to any person a specified part of his property, which is distinguished from all other parts of his property, the legacy is said to be specific.

    4. Amongst the illustrations the following is relevant on this point: “(iv) A bequeaths to B … an annuity of 500 rupees out of the rents of his zamindari of W.” This is a specific bequest. S. 150 of the said Act defines ‘demonstrative legacy’ in these terms:

    Where the testator bequeaths a certain sum of money, or a certain quantity of any other commodity and refers to a particular fund or stook so as to constitute the same the primary fund or stook out of which payment is to be made, the legacy is said to be demonstrative.

    Explanation. — The distinction batmen a specific legacy and a demonstrative legacy consists in this, that—where specified property is given to the legatee, the legacy is specific; where the legacy is directed to be paid cat of specified property, it is demonstrative.

    5. The relevant Illustration runs in these terms: A bequeaths to B an annuity and directs it to be paid “out of rents arising from my taluk of Ramnagar”. This is a demonstrative legacy.

    6. In Williams on Executors (12th Edn.), Vol. 2, at p. 755 it is observed as follows:

    So a bequest of a rent cat of a term of years is specific. Thus where the testator bequeathed 401 a year to A for life, cat of his chattel estate at Kenn, and 102, a year to B for life, cat of the same estate, which he gave to C, these several foaquesta were held specific: 1 P. Wms 4031.

    But if the testator's meaning is to give the legatee an annuity at all events, though he directs it to be paid out of an estate or the rents of it, the legacy is not specific but demonstrative; 2 Mad 223;2 6 HLC 885.3

    7. The plaintiffs urge that according to the recognized canon of construction in case of doubt, a legacy should be construed as demonstrative rather than specific. They also rely on the decisions in 13 Bom LR 3194 and 4 Ves 177.5 The true test to determine whether a particular bequest is specific or demonstrative, so far as India is concerned, is mentioned in the Explanation to S. 150. For that, the only guiding factor can be the exact words used in the will and no other. While the authorities quoted decide the meaning of particular words used in a particular will, I do not think they are useful in determining the exact construction of the words used in this will. In the will before the Court, the testator started by saying that the average monthly rent of his property at Sheikh Memon Street was about Rs. 1,000 and in clause 7 directed a division of that rent amongst the persons mentioned in as clause 7 of his will. The Court has there, for before it the mind of the testator working on the footing that he had this Sheikh Memon Street property. He knew what rents were realized therefrom and by clause 7 he was dividing the rents of that property amongst the legatees mentioned in the clause. Beading that clause as a whole,) it seems to me that he was dealing with specific property belonging to him and the intention was not to give a bequest in any event and the rents of the property indicated a primary fund from which the bequest was to be given. The Illustration to S. 142, mentioned above, applies exactly to the facts here and supports the construction of the clause put by me. The decision in Bai Bhicaji v. Bai Dinbai recognizes that in respect of rents of immoveable property, the question whether it is a specific legacy may arise, and the English decisions cited therein do not go against such disposal to be considered as specific bequests. In my opinion therefore the bequests contained in clause 7 of the will are specific bequests. The executors intimate that the rents have now come down to about Rs. 500. The result is that the bequests in favour of the parties mentioned therein shall abate to the extent of the abatement of the rent in fact, as compared to Rs. 1,000, which was the basis of the bequest. My answer to this question is therefore in the negative. Costs of both parties, as between attorney and client, to come out of the estate.

    W.D/A.L

    8. Answer accordingly.

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    Bhagirathibai v. Advocate General
    (Nov 20, 1936)