Administrator pendente lite may exercise shareholder rights to preserve estate assets, subject to probate court control.

An administrator pendente lite appointed in probate proceedings may be authorised to preserve and administer estate shares as representative of the deceased estate. Under Section 247 of the Indian Succession Act, the administrator has the powers of a general administrator, subject to the probate court's control, except for distribution of the estate. Where shares form a substantial part of the estate, this includes taking steps to have the shares recorded in the administrator's representative name, collecting dividends, and exercising incidental shareholder rights such as voting and other membership rights, so far as consistent with company law.

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Issues: Whether an administrator pendente lite appointed in probate proceedings can be authorised to exercise the rights incidental to shares forming part of the estate, including getting the shares recorded in the administrator's name as representative of the estate and exercising voting and other shareholder rights.

Analysis: Section 247 of the Indian Succession Act, 1925 empowers the probate court to appoint an administrator pendente lite who has all the rights and powers of a general administrator except the right of distributing the estate, and such administrator acts under the immediate control of the court. Where the estate substantially consists of shares, administration of the estate requires preservation of those assets and effective exercise of the proprietary incidents attached to them. The court held that the administrator pendente lite may approach the companies as representative of the deceased estate to preserve and administer the shares, collect dividends, and exercise rights incidental to ownership, including voting and other member rights, subject to the law governing the companies and to the control of the probate court. The administrator does not take title in his own right, but acts as representative of the estate for the limited purpose of administration.

Conclusion: The administrator pendente lite can be authorised to exercise the rights and powers incidental to the shares for administration and preservation of the estate, including taking steps before the companies as representative of the deceased estate, but cannot distribute the estate.

Ratio Decidendi: An administrator pendente lite appointed under Section 247 of the Indian Succession Act, 1925 has the powers of a general administrator over estate assets, including shares, except distribution, and may exercise the incidental rights necessary for effective administration under the court's control.

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