Maintenance allowance under jagir law is a personal statutory right and not property passing on death for estate duty.

A widow's maintenance allowance payable from jagir compensation under section 27 of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952, read with rule 37D, was treated as a personal statutory entitlement determined by the Jagir Commissioner after inquiry and objections. The allowance was payable in the widow's own right, not by succession or inheritance from the deceased jagirdar, and therefore did not amount to property passing on death under section 5 of the Estate Duty Act, 1953. The commuted value of the maintenance allowance was held not includible in the deceased's dutiable estate.

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Issues: Whether the commuted value of maintenance allowance payable to the widow under section 27 of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952, out of the compensation payable on resumption of the jagir, formed part of the dutiable estate of the deceased under section 5 of the Estate Duty Act, 1953.

Analysis: Section 27 of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952, read with rule 37D of the Rajasthan Land Reforms and Resumption of Jagirs Rules, 1954, creates a right in favour of a person entitled to maintenance under the existing jagir law to receive such maintenance out of the compensation payable to the jagirdar. The maintenance is determined by the Jagir Commissioner after inquiry and objections, and once so determined, it is payable to the maintenance-holder in her own right. It is not acquired by succession or inheritance from the deceased jagirdar, nor is it property which passes on death within the meaning of section 5 of the Estate Duty Act, 1953. The allowance is a personal maintenance payment and is not transferable as part of the estate.

Conclusion: The amount of Rs. 1,08,000 representing the commuted value of the widow's maintenance allowance was not includible in the dutiable estate of the deceased.

Ratio Decidendi: A maintenance allowance payable under section 27 of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952, out of compensation for resumed jagir is a personal statutory entitlement of the dependant and does not constitute property passing on death for estate duty purposes.

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