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Section 152: Ademption explained
If anything which has been specifically bequeathed does not belong to the testator at the time of his death, or has been converted into property of a different kind, the legacy is a deemed; that is, it cannot take effect, by reason of the subject-matter having been withdrawn from the operation of the will. Illustrations (i) A bequeaths to B— “the diamond ring presented to me by C”: “my gold chain”: “a certain bale of wool”: “a certain piece of cloth”: “all my household goods which shall be in or about my dwelling-house in M. Street in Calcutta, at the time of my death.” A in his life time,— sells or gives away the ring: converts the chain into a cup: converts the wool into cloth: makes the cloth into a garment: takes another house into which he removes all his goods. Each of these legacies is adeemed. (ii) A bequeaths to B— “the sum of 1,000 rupees, in a certain chest”: “all the horses in my stable”.
Source: official text of The Indian Succession Act, 1925 as published on India Code (PDF). All sections of the Indian Succession Act, 1925.