Sections 162-166 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Ademption is the loss of a specific legacy because the thing is gone or has changed kind. Sections 162 to 166 list five situations in which the Act says that, although something has happened to the thing, the legacy is not adeemed. They finish the chapter on ademption that began at section 152.
As per the text of the Act consulted, the legacy is not adeemed in these cases: where the thing bequeathed is a sum or commodity to be received from a third person and the testator receives it but keeps it apart from the general mass of his property (s.162); where the thing changes by operation of law, or in the course of executing a legal instrument under which it was held (s.163); where it changes without the testator's knowledge or sanction (s.164); where stock lent on condition of replacement is replaced (s.165); and where stock sold is replaced by an equal quantity of the same stock that belongs to the testator at death (s.166).
Section 162: money received from a third person but kept apart
Section 162 starts from a distinction. Section 154 treats the bequest of a right to receive something from a third party as adeemed when the testator receives it. Section 162 covers a different kind of gift: where the thing bequeathed is not the right to receive something of value from a third person, but the money or other commodity which may be received from the third person by the testator himself or by his representatives. In that case, the receipt of such money or commodity by the testator does not constitute an ademption. But if he mixes it up with the general mass of his property, the legacy is adeemed.
The Act's illustration: A bequeaths to B whatever sum may be received from his claim on C. A receives the whole of his claim on C and sets it apart from the general mass of his property. The legacy is not adeemed.
The reading, in plain terms: the legatee's gift is the money when it comes, wherever it comes from. If the testator receives it and puts it in a separate place, the gift stays attached to it. If he mixes it with his other money, the gift cannot be traced and is adeemed. For the earlier rule see our article on sections 152 to 156.
If you are an executor and you cannot tell whether a particular sum was kept apart or mixed, a legal consultation helps before the legacy is paid or refused.
Section 163: change by operation of law
Where a thing specifically bequeathed undergoes a change between the date of the will and the testator's death, and the change takes place by operation of law, or in the course of execution of the provisions of any legal instrument under which the thing bequeathed was held, the legacy is not adeemed by reason of such change.
The Act's three illustrations:
- A bequeaths to B all the money which he has in the 5 and a half per cent loan of the Central Government. The securities for that loan are converted during A's lifetime into 5 per cent stock.
- A bequeaths to B the sum of 2,000 invested in Consols in the names of trustees for A. The sum is transferred by the trustees into A's own name.
- A bequeaths to B the sum of 10,000 rupees in promissory notes of the Central Government which he has power under his marriage settlement to dispose of by will. Afterwards, in A's lifetime, the fund is converted into Consols by virtue of an authority contained in the settlement.
No one of these legacies has been adeemed. The copy prints a "#" sign after the figure 2,000 in the second illustration, where a currency sign is evidently meant; it is flagged here and not corrected.
The common point in the three illustrations is that the testator did not choose the change. It came from a conversion of a loan, from a transfer by trustees, or from the terms of a settlement.
Section 164: change without the testator's knowledge or sanction
Where a thing specifically bequeathed undergoes a change between the date of the will and the testator's death, and the change takes place without the knowledge or sanction of the testator, the legacy is not adeemed. The Act's illustration: A bequeaths to B all his 3 per cent Consols. The Consols are, without A's knowledge, sold by his agent, and the proceeds converted into East India Stock. The legacy is not adeemed.
Compare section 158, where the testator himself sells the stock and the legacy is adeemed; see our article on sections 157 to 161. The text turns on the testator's knowledge or sanction. The section does not say what is to be handed to the legatee after the change in the illustration; it says only that the legacy is not adeemed.
Sections 165 and 166: stock lent, and stock sold and replaced
These two sections have no illustrations.
- Section 165. Where stock which has been specifically bequeathed is lent to a third party on condition that it shall be replaced, and it is replaced accordingly, the legacy is not adeemed.
- Section 166. Where stock specifically bequeathed is sold, and an equal quantity of the same stock is afterwards purchased and belongs to the testator at his death, the legacy is not adeemed.
The sections look alike but cover different facts. In 165 the stock is lent and returned; in 166 the stock is sold and the same quantity of the same stock is bought back. In both, at the testator's death the testator holds the stock again.
The five sections together
| Section | What happened | Result |
|---|---|---|
| 162 | The thing bequeathed is the money or commodity to be received from a third person; the testator receives it | Not adeemed if kept apart from the general mass; adeemed if mixed with it |
| 163 | Change by operation of law, or in the course of executing a legal instrument | Not adeemed |
| 164 | Change without the testator's knowledge or sanction | Not adeemed |
| 165 | Stock lent on condition of replacement, and replaced | Not adeemed |
| 166 | Stock sold, equal quantity of the same stock bought and held at death | Not adeemed |
Examples with invented names
Section 162. Lalit's will gives "whatever I recover from the claim against Mohan Traders" to his brother. Lalit recovers the sum and keeps it in a separate account marked for that purpose. The legacy is not adeemed. If he had paid it into his general savings account along with his other money, section 162 would treat the legacy as adeemed.
Section 164. Neeta's will gives "my 300 units in a particular mutual fund" to her son. Her financial agent, without telling her, switches the units into another scheme. If the change was without her knowledge or sanction, the text of section 164 says the legacy is not adeemed.
Section 166. Omkar's will gives "my 100 shares of Delta Ltd." to his daughter. He sells the 100 shares, and later buys 100 shares of the same company, which he holds at death. Under section 166 the legacy is not adeemed.
Where the sections apply
Schedule III lists sections 162 to 166 among the sections of Part VI that section 57 applies to the wills and codicils of Hindus, Buddhists, Sikhs and Jainas described there. Section 58 as printed says Part VI does not apply to the testamentary succession to the property of any Muhammadan. See our article on wills of Hindus, Buddhists, Sikhs and Jainas and Schedule III. The print consulted shows amendments only up to the Indian Succession (Amendment) Act, 2002 (26 of 2002); check for later amendments.
Need help with a legacy that has changed form?
If shares or loans named in a will were converted, replaced or switched, the effect on the legacy depends on how and why the change happened. You can start with a legal consultation.
Key takeaways
- Money or commodity to be received from a third person: not adeemed if kept apart; adeemed if mixed with the general mass (s.162).
- Changes by operation of law or under a legal instrument do not adeem (s.163).
- Changes without the testator's knowledge or sanction do not adeem (s.164).
- Stock lent and replaced does not adeem (s.165).
- Stock sold and an equal quantity of the same stock bought back and held at death does not adeem (s.166).
Read next
- Sections 157 to 161: ademption of stock and of goods described by place
- Sections 167 and 168: pledge or incumbrance on the thing bequeathed
- Sections 152 to 156: ademption of a specific legacy
- Ambiguous clauses in a will
Disclaimer: Based on an unofficial print of the Indian Succession Act, 1925 showing amendments up to the Indian Succession (Amendment) Act, 2002 (26 of 2002), as consulted on 2 October 2026. It explains the words of the statute only; later amendments, State amendments and rules, court fees and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.