The Supreme Court has suggested the Law Commission of India to re-examine Section 306 of the Indian Succession Act, 1925, considering whether the provision should be expanded to permit continuation of certain tortious claims against the estate of a deceased wrongdoer.
The Bench of Justices JK Maheshwari and Atul S Chandurkar made the observations while deciding a medical negligence matter arising from proceedings before the National Consumer Disputes Redressal Commission (NCDRC).
Section 306 of the Indian Succession Act incorporates the common law principle of ‘actio personalis moritur cum persona,’ under which certain personal causes of action come to an end upon the death of either the claimant or the alleged wrongdoer. The provision generally permits legal rights and liabilities to survive through legal representatives, but carves out exceptions relating to defamation, assault, and other personal injuries not causing death, as well as cases where the relief sought becomes ineffective after the death of a party.
The issue before the Supreme Court arose after a doctor accused of medical negligence died during the pendency of proceedings before the NCDRC. His legal heirs challenged the continuation of the proceedings, contending that the allegations related to the personal negligent acts of the deceased doctor and that any liability arising out of such acts stood extinguished upon his death under the exceptions contained in Section 306 of the 1925 Act.
The appellants argued that pecuniary claims arising from personal negligence could not be enforced against the legal representatives of the deceased and that such liability could not survive against the estate.
The Supreme Court, however, upheld the findings of the NCDRC and held that the exceptions contained in Section 306 must be interpreted narrowly. The Court observed that only purely personal causes of action, such as claims relating to defamation or personal injury, would abate upon death, whereas claims involving pecuniary loss or impact on the estate would continue against the legal representatives to the extent of the estate inherited by them.
While affirming continuation of the proceedings, the Bench also expressed concern regarding the limited scope of Section 306 and observed that the present legal position may not adequately address cases involving financial loss caused by the wrongful acts of a deceased person.
Referring to developments in English law, where certain tort liabilities survive against the estate of a deceased person, the Court observed that there may be a need for a broader policy review of the statutory framework in India. The Bench stated that the question of expanding liability under Section 306 involved significant policy considerations better examined by expert bodies such as the Law Commission of India.
The Court indicated that the existing provision appears inconsistent in preventing certain claims from proceeding against the estate of a deceased wrongdoer, particularly where the wrongful act has caused pecuniary damage to the victim or complainant.
The judgment further clarified that any liability of legal heirs would remain restricted to the extent of the property or share inherited from the deceased and would not create personal liability beyond the estate devolved upon them.
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