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Section 108: When lapsed share goes as undisposed of
Where a share which lapses is a part of the general residue bequeathed by the Will, that share shall go as undisposed of. Illustration The testator bequeaths me residue of his estate to A, B and C, to be equally divided between them. A dies before the testator. His one-third of the residue goes as undisposed of.
Source: official text of The Indian Succession Act, 1925 as published on India Code (PDF). All sections of the Indian Succession Act, 1925.