Section 278: Payment of debts of deceased service person

(1) Where probate of the will or administration with or without the will annexed of the estate of a deceased person, subject to service law under this Act, is not taken out, and an officer of the Armed Forces, the Accountant-General or any public department, before disposing of the money and personal property of the deceased, has notice of a debt due by the deceased, he or it shall, notwithstanding anything to the contrary in this Part of this Act, apply the money and property as may remain in his or its authority or control, or so much thereof as may he required in or towards the payment of the debt, if he or it is satisfied that-
(a) the claimant has proved the debt to the satisfaction of the commanding officer or of the officer acting on behalf of the commanding officer;
(b) a demand for the payment of the debt was made within one year after the death of the person; and
(c) the debt was incurred within three years before the death of the person.
(2) A person claiming to be a creditor of a deceased person subject to service law under this Act shall not be entitled to obtain payment of his debt out of any money in the hands of an officer of the Armed Forces or of the Accountant-General or any public department except by means of a claim on an officer responsible for the deceased person's pay, and proceeding thereupon under and in accordance with this Act.
(3) If the estate is being administered by a customary court, any Government debt payable from the estate shall be paid by the officer concerned before the balance of the estate is passed to the Customary Court, and that court shall thereafter be responsible to see that all other debts are settled before final distribution of the estate of the deceased service person.