Section 305 of Indian Succession Act, 1925 states that, "An executor or administrator has the same power to sue in respect of all causes of action that survive the deceased, and may exercise the same power for the recovery of debts as the deceased has when living.
In simplied way an Executor or an Administrator has the right to take legal action on any issues that can still be surviving after the deceased. This includes the right to collect any debts owed to the deceased, just as the deceased could have done when he/she was alive.
Example: A before passing away had lent Rs.1,00,000/- to his friend B with a written agreement for repayment within a year. Unfortunately A dies before the debt is repaid. According to section stated above, A's Executor appointed in his will or Administrator has the legal authority and right to sue B for the recovery of the outstanding Rs.1,00,000/- just as A could have if he were alive.