Sections 319-325 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.
Once an executor or administrator has a grant, the Act tells him to collect the estate and then to pay the deceased's debts in a set order before any legacy is paid. Sections 319 to 325 give that order. This article walks through it step by step, as per the text of the Act consulted.
The executor or administrator shall collect, with reasonable diligence, the property of the deceased and the debts due to him at death (s.319). Payment follows this order: funeral expenses and death-bed charges first (s.320); then the expenses of obtaining probate or letters of administration (s.321); then wages for services rendered within three months before death, and then other debts according to priorities, if any (s.322). Save as aforesaid, debts are paid equally and rateably (s.323). Debts of every description must be paid before any legacy (s.325).
Section 319: collect the estate
The executor or administrator shall collect, with reasonable diligence, the property of the deceased and the debts that were due to him at the time of his death. "Reasonable diligence" is the standard in the text; it does not define it further. This is the practical start of administration: identify what the deceased owned and what others owed him. The power to sue for surviving claims is in s.305, explained in our article on sections 305 and 306.
The order of payment, step by step
| Order | What is paid | Section | Words of the text |
|---|---|---|---|
| 1 | Funeral expenses and death-bed charges | 320 | Funeral expenses to a reasonable amount, according to the degree and quality of the deceased, and death-bed charges, including fees for medical attendance, and board and lodging for one month previous to his death, shall be paid before all debts |
| 2 | Expenses of obtaining probate or letters of administration | 321 | Including the costs of any judicial proceedings necessary for administering the estate; paid next after the funeral expenses and death-bed charges |
| 3 | Wages for certain services | 322 | Wages due for services rendered to the deceased within three months next preceding his death by any labourer, artisan or domestic servant |
| 4 | Other debts | 322, 323 | According to their respective priorities (if any); save as aforesaid, no creditor has priority over another and all are paid equally and rateably |
| 5 | Legacies | 325 | Only after debts of every description |
Section 320 in detail
Two items come "before all debts". The first is funeral expenses "to a reasonable amount, according to the degree and quality of the deceased". The second is death-bed charges, which the section says include fees for medical attendance and board and lodging for one month previous to his death. The figure "one month" is as printed.
Section 321 and costs
The expenses of obtaining probate or letters of administration, "including the costs incurred for or in respect of any judicial proceedings that may be necessary for administering the estate", are paid next after funeral expenses and death-bed charges. The text consulted prints no amount for any of these costs.
If you are an executor facing creditors' claims and are unsure of the order, you can ask us for a legal consultation before making any payment.
Section 322: wages, then other debts
Wages due for services rendered to the deceased within three months next preceding his death by any labourer, artisan or domestic servant are paid next. Then the other debts of the deceased are paid "according to their respective priorities (if any)". The words "(if any)" show that the Act itself does not create further ranks among other debts.
Section 323: equal and rateable payment
"Save as aforesaid", no creditor has a right of priority over another. The executor or administrator shall pay all such debts as he knows of, "including his own", equally and rateably as far as the assets of the deceased extend. The copy consulted prints "the assets of the deceased Will extend" in place of "will extend"; it reads as a printing slip and the sense is unaffected. The words "including his own" mean that if the executor is himself a creditor, his debt is paid in the same way and not ahead of the others.
An invented example: Mr. Sethi dies leaving assets that, after funeral expenses, death-bed charges, costs of probate and wages due to his driver, stand at Rs. 3,00,000 against ordinary debts of Rs. 4,50,000 owed to three creditors, one of whom is his executor son. Under s.323 the son does not take his own debt first: all the ordinary debts are paid equally and rateably as far as the assets extend.
Section 324: movable property where domicile is not in India
Section 324 is a special rule. The copy consulted prints the heading with "" and sub-sections (1) and (2) run together without a full stop ("the law of (2) No creditor ..."); that is a printing slip and the sense can be read through.
- (1) If the domicile of the deceased was not in India, the application of his movable property to the payment of his debts is to be regulated by the law of India.
- (2) No creditor who has received payment of a part of his debt by virtue of sub-section (1) is entitled to share in the proceeds of the immovable estate unless he brings that payment into account for the benefit of the other creditors.
- (3) The section does not apply where the deceased was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person.
The Act's illustration
A dies with his domicile in a country where instruments under seal have priority over instruments not under seal. He leaves movable property worth 5,000 rupees, immovable property worth 10,000 rupees, debts on instruments under seal of 10,000 rupees and debts on instruments not under seal of 10,000 rupees. The creditors holding instruments under seal receive half of their debts out of the movable estate. The immovable estate is applied to the debts not under seal until one-half of them is discharged. That leaves 5,000 rupees, distributed rateably among all the creditors in proportion to what remains due. This is the Act's own illustration with old sums, not a current example. Domicile itself is dealt with in Part II of the Act.
Section 325: debts before legacies
"Debts of every description must be paid before any legacy." This is the last rung. Rules about what happens if the assets are not enough for all legacies are in the next group of sections, explained in our article on sections 326 to 331. The general role of the executor is in our guide on executor duties under a will.
Later amendments are not shown in the text consulted and should be checked.
Need help ordering the payments?
If you are an executor or administrator with several creditors and a will that leaves legacies, we can explain the order the Act sets and help you prepare the payments schedule. Start with our legal consultation service.
Key takeaways
- Collect the estate and the debts due to the deceased with reasonable diligence (s.319).
- Pay first the funeral expenses and death-bed charges (s.320), then the costs of obtaining the grant (s.321), then three months' wages and then other debts by priority (s.322).
- Save as aforesaid, creditors, including the executor, are paid equally and rateably (s.323).
- Section 324 deals with movable property of a deceased domiciled outside India and does not apply to the classes named in sub-section (3).
- Debts of every description come before any legacy (s.325).
Read next
- Sections 316-318: funeral, inventory and account of the estate
- Sections 326-331: indemnity before paying legacies and abatement of legacies
- Sections 305-306: rights of action that survive to the executor or administrator
- Executor duties under a will: probate, inventory and distribution
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.