TRUST ACT-INDIAN

8/16/2019 TRUST ACT-INDIAN

1/40

CONTENTS

Preface to the Sixth Edition vAcknowledgement vi

Preface to the Fifth Edition viiPreface to the Th ird Edition viiiPreface to the Second Edition ixPreface to the First Edition xTable of Cases liList of Abbreviation s cxiiList of Sta tutes Referred cxiv

THE IN D IAN TRU STS ACT , 1882INTRODUCTION

1. Origin and Development of Trusts in England 4Resulting Trust 6Resulting, Implied or Constructive Trust 7Unjust Enrichment: Approach to 7

2. Conception of Trusts in Hindu and Moh amm edan Law 9

3. Sum mary of the Act 10Schem e of the Act 10Local Extent 10Savings 10

4. Religions: Freedom and Religion: Constitution of India, Articles 25 and 26 105. Definition of Trus t 126. Creation of Trust 12

Requisites of Valid Trus t 12Parties 12Lawful Purp ose 12Capacity of Parties 13Declaration 13Subject-matter 13Acceptance 13

7. Duties of the Trus tee 14Preliminary Duties 14Positive Duties 14Negative Du ties 15

8. Rights and Pow ers of the Trustees 15Powers 16

9. Liabilities of the Trustee 1610. Rights of the Beneficiary 1711. Liab ilities of the Beneficiary 18


2/40

The Indian Trusts Act, 1882

12. Vacating the Office of Trus tee 1813 . Extinction of Trus ts 1814. Ce rtain Ob ligations in the N atu re of Trusts 19

Du ties & Liabilities 20Bona fide Purcha sers 20

15. Charitable Trusts and section 11, Income-tax Act 2016. Exem ption un der Stamp Act 2017. Trusts und er State Laws 21

Revisional Pow er of Com missioner of End ow m ents - Section 43 and92 of A.P. Cha ritable and En do w m en ts Act, 1987 21

Cv pres doctrin e 26Removal of Trustee - Section 6 of N agp ur Im prove me nt Tru sts Act, 1936 36Tem ples of Society are Public - Section 3(15) of Orissa H in du Religious

En dow m ents Act, 1952 37W hether Tem ple is Private or Public - Section 44 of Orissa H in du

Religious End ow m ents Act, 1951 38A ppo intm ent of Interim Trustee - Section 7 of Orissa H ind u Religious

End ow m ents Act, 1970 40Appointment of Non-Mandatory Trustee - Section 27 and 41 of

Orissa H ind u Religious End ow m ents Act, 1970 41H ereditary T rustees - Determ ination - Section 3(vi) of Orissa H ind u

Religious En dow m ent s Act, 1952 41Excessive De legation - Section 79 of Rajasthan Public Tru sts Ac t, 1959 41Registration - Section 7 an d 8 of M.P. Public Tru sts Act, 1951 42Rajasthan Public Trust s Act (42 of 1959), section 73 - Bar to

Civil Co urts Jurisdiction 43Rajasthan Public Trusts Act (42 of 1959), section 77. Exemption from

prov ision s of Act. 43Rajasthan Pub lic Tru sts Act (42 of 1959), section 52 - Tem ple 43Rajasthan Public Trusts Act (42 of 1959), sections 52, 53 and 76

Rajasthan Public Tru sts Rules (1962) 43

Rajasthan Public T rusts A ct (42 of 1959), section 52 Con stitutio n ofM anagem ent of Com mittee of Dev asthan. 43M aintainability of Suit - Section 22 of Rajasthan Public Tru sts Act, 1959 43Ap pointm ent of Head ship - Section 26 of Tam il N ad u Religious and

Charitable End ow m ents Act, 1959 44Deed of Settlement - Section 77 of Tamil N ad u H ind u Religious a nd

Cha ritable En dow m ents Act, 1927 44Religious Institution - Section 63 of Tamil N ad u H in du Religious and

Charitable End ow m ents Act, 1951 45

Religious Institution or private temple - Section 6(2) of Tamil NaduHin du Religious and Charitable End ow m ents Act, 1959 45Power of Com missioner - Section 60 of Tamil Na du H ind u Religious

and Charitable End ow m ents Act, 1959 45M aintainability of Suit regard ing t rust s - Sections 5 an d 108 of

Tamil N adu H ind u Religious and Charitable End ow m ent Act, 1959 46


3/40

Contents xiii

Religious Endowment - Section 6(17) of Tamil Nadu Hindu Charitableand End ow m ents Act, 1959 46

Tamil Nadu Hin du Religious and Charitable Endowm ents Act(22 of 1959), Section 107, Freedom to M anage Religious Affairs -Den om inational Temple 46

Private Trust or Public Charity - Section 6(17) of Tamil N ad u H induReligious and Charitable End ow m ents Act, 1959 47

Right of Priest to Offerings - Section 45 of Tamil Nadu HinduReligious Charitable End ow m ents Act, 1959 47

Tem ple wh ether Public or Private - Section 63 of Tamil N ad uHi ndu Religious and Charitable Endow ments A ct 1959 48

H eredita ry Trustee - Section 6 of Tamil Na du Religious andCh aritab le Institutio ns Act, 1959 49

Minimum Strength Required for Functioning of Board - Section 73 ofTravancore-Cochin Hin du Religious Institutions Act, 1950 52

18. Trusts und er UK Laws 52Trusts: Pension Scheme 52 Resulting Trust: Surrend er of Lease 52Con structive Trust 53Land Trust 54Con structive Trust: Bribe 55Com mo n Intention of Trustees 55

Prop erty Shared by Co-hab itates 55 Division of Pro perty 56Purch ase of Prop erty in Joint Na m e 56Creation of Trust by Prisoner's Prop erty 56Trust of Land 57Perpe tuity Point 58Power of Adva nceme nt 58Right to Prope rty 59Du ty of Trus tee 59 Provision of Reverter 61 Joint O w ners hip 61 Right of pre-e m ption 62Co-owners: App roach by Court 62Trust for Sale 62Interest of Charge 62Beneficial Interest in Matrimonial Ho me 62Discretionary Pow ers of Trustees 63

Trustees are Arbiters of Beneficiary 63Trust und er Will 63Pow er to Advancem ent of Benefit 63Trust: Age nt and Principal 64Intension to Create a Trust 64Trust: Priso ner's Private Cash Account 65


4/40

xiv The Indian Trusts Act, 1882

Imp lied Trust 65Obligations Asserted by Trusts 66Sub stitution of Trust 66Trust: Electricity Su pp ly Pen sion Schem e 66Tru st of land : Joint Interest 66

Creation of Trust: Prisoner's Prop erty 67Severance from the Beneficial Joint Tenan cy 68Status of Com panies as Trustees 68Pow er of Ap poin tme nt of Trustee 68App ointmen t of New Trustee 68Con structive Trust: Conv eyance into Joint Na m es 68Prop erty in Joint Na me s 70 Settlement and Trust : M eaning of 70

Sole Ow nership in the Dwelling Ho use 70Con structive Trustee: Liable to Accoun t as Con structive Trustee 70 Beneficial Ow ne rship 71Trust - Pension Scheme 71Sham Trust 71Sham Trust: Dive rsion from Asset 72Qu istclose Trust 72Con structive Trust: Frau dulen t Claim 73

Reverter is Useful Enco uragem ent to Cha ritably M inded Perso ns 73Rev erter is an Event no t a Proce ss 73Pu rpo se of the Trust 73Ado ption of Ne w Trust Purpo se 74Resulting Tru sts 74Resu lting Trust Solution 75Beneficial Ow ne rship 75Secret Tru st 75Constructive Trustee and Con structive Trust 75Express Power to Ap poin t a Ne w Trustee 76 Status of Com panies as Tru stee 76

CHAPTER IPRELIMINARY

1. Short t i t le , com me ncem en t 77Local exten t 77

S a v i n g s 77

1. Interp retation of the Act 792. Interpretation - Tw o Views 793. Ap plicability of the Act 804. Scope and Object 815. M utual Relations of the M embe rs of an Un divided Fam ily as De term ined

by any Customary or Personal Law 82


5/40

Contents xv

M anager of Joint H ind u Family 82Hin du Widow 83Karanavan of Malabar Tarward 83

6. Private & Public Trusts - Distinction 837. Public or Private, Religious or Charitable En dow m ents 84

M eaning of Charitable Purpose 848. Trust of Ch aritable or Religious N atu re - H ind u Law 859. Public and Ch aritable Trusts - Proof 85

10. Public and Ch aritable Trusts - English Law App licable 8611. Hin du and Mo hamm edan Religious Endow ments 8612. Do ctrine of Cypres 8613 . Ap plication of Cypres Doctrine to Charities 8814. Failure of Purp ose - Doctrine of Cypres 88

15. Trusts to Distribute Prize Taken in War Am ong the Ca pto rs 8916. Co nstitutio n of Com mittee of M anag em ent of Public Trust - D iscretion of

Go vern m ent - Rajasthan Public Trusts Act, 1959 8917. Dev asthan Commissioner is Statutory Authority - Rajasthan Public

Tr us ts Act, 1959 8918. Es top pel - Section 52 of Rajasthan Pub lic Trusts Act, 1959 9019. Res Judicata - Section 52 of Rajasthan Pub lic Tru sts Act, 1959 9020. Jurisdiction of Civil Court against the Ord er of Com missioner un der

section 6(3) of H.P. Hin du Public Religious Institutions an d Ch aritable

En dow me nts Act, 1984 9021 . Finding of Com missioner regarding Temple Property - H.P. Hin du

Public Religious Institutions and Cha ritable End ow men ts Act, 1984 9022. Revo lution of Gift 9023 . Right of Trustee 9124. Transfer of Du ties of Trustees 9125. Objection to Notice 9126. Ca use of Action 9227. Use of Trust Fun d 92

2. Re peal of Enactm ents 921. Gen eral 932. List of Am ending Acts and Ad aptation Orde rs 93

3 . Interpretation-c lause.— trust 93 auth or of the trust ; trus tee ; beneficiary ; trust pro per ty ; beneficial interest ; instr um ent of trus t 93 brea ch of trus t 93 reg iste red , exp ress ions def ined in Act 9 of 1872 94

1. Origin of Tru st in England 962. N atur e of Trust 973. Tru st for Whom 974. Conception of Trust - Hin du and M oham medan Law 985. Con ception of Trust - English and M oham med an Law - Distinction 98


6/40

x v i The Indian Trusts Act, 1882

6. Legal and Equitable Estates not Recognised in India 987. Definitions of Trust

Coke's Definition 99Justice Sto ry's Definition 99Lord Lind ley's Definition 99

8. Ingredients 1 0 19. Constitution of Trust - Com mu nication to Trustee - Test of Co m pletene ss 102

10. Validity of Trust 1 0 2

11. Credit ent ries - If Sufficient to Create Tru st 10312. Trust Deed and Evid ence Act, 1872, section 75 10313 . Classification of Tru sts 1 °3

Simple an d Special 103M inisterial and Discretion ary 104

Lawful and Unlawful 104Trust Declared by Act of Parties and by Op eratio n of Law 104Express an d Im plied Tru st 104Co nstructive Trust 105Resulting Trust 105Executed an d Executory Tru st 106

Exam ple of Executory Trust 106Public or Private Trust 106Deb enture Trust 107Security De posit 107Fu nd s De posited in Co urt by the Plaintiff 109

14. Religions and Cha ritable Pu rpo se - Eviden ce - Nece ssity 10915. A dd ing Trust to the List of Public Trusts 11016. Bombay Pub lic Tru sts Act, 1950, section s 2(13) an d (19) 11017. Res Judicata - Canadian Position l H18. Pub lic and Private Tru sts - Poin ts of Similarity 11119. Trust Distinguished from Certain Othe r Legal Relations l H

Trust and Con tract 112Trust and Agen cy 112Trustee and Ag ent 113Gift W ithout Consideration bu t Acted U pon 113Gift: Love an d Affection 113Tru st and Bailment 114Trust and Pow er 114Trust and Gift 114

Benami Transaction and Cestui que Trust H4

Trust and Settleme nt 115Trust and M anagem ent of Property 115Trust and Will 116Trust and Executor 116Ob ligations in N atur e of Trust an d Trust - Distinction 116


7/40


8/40

x v i i i The Indian Trusts Act, 1882

54. Jurisdiction to Try Civil Suit - Section 79 Bom bay Pub lic Tru st Act, 1950 13755. Insolvency of Trust 13856. Beneficiary 138

CHAPTER 11

OF THE CREATION OF TRUSTS4. Lawful pu rpo se 140

1. Princip le of the section 1412. Lawful Pu rpo se 1423 . Forbidd en by Law 1424. Clause (a): Trusts Forb idden by Law 1425. Defeating the Prov isions of La w 1436. Claus e (b): Tru st Cr eated Defeating Pro vision s of Law 143

7. Frau dule nt 1448. Clause (c): Fra ud ule nt Tru st 144

Trus t for Benefit of Cr edito rs - Fra ud ule nt 1459. Injury to Perso n or Pro per ty of A no the r 145

10. Public Policy - M ean ing 14511. Public Policy - 2 Schoo ls 14612. Public Policy - Un ruly Ho rse 14713 . Public P ol ic y - N ot Static 149

14. Clause (e): Trusts wh ich are Imm oral or O ppo sed to Public Policy 150Trusts for Illegitimate Ch ildre n 150Trusts in Co nsideration of Imm oral Relations 150Trusts Offending Ag ainst M orality and Religion 150Trusts in Restraint of M arriage 151

15. Trus ts Offending Ag ainst the Law of Per petu ities 151Restraint on Alien ation 151Insu ranc e for Life 151

Trusts which are Unreason able 152Trust for Su perstitiou s Pu rpos es 15216. Effect of Creatin g a Tru st for Illegal Pu rpose 152

Rules in Eng lish Law 15217. Trus ts Partly Lawful an d Partly Unlaw ful 15318. Trust for Discharging Deb t of Settlor-lawful 15419. Surety Bond - Co nside ration Lawful - Tru st Valid 15420. Exp lanation 155

5, Trus t of im m ov ab le proper ty 155Trus t of m ov ab le proper ty 1551. Scope and Ap plicability 1562. Trust of Imm ovable Prope rty - Registration Nece ssary 1563. Cha llenge to Registration of Trust by Revision - M aintain ability -

Bom bay Public Tru st Act 1564. De-reg istration of Tru st 156


9/40

Contents xix

5. Im portance of Place of Registration 1576. Prescriptive Righ t 1577. Registration of Trust w ithou t H earing Tenant— Validity 1578. Section 92 CPC and Rajasthan Pub lic Trust Act, 1959 - U nreg istered T rust -

Maintain ability of Suit 1579. Composition Deed 158

10. Co mp rom ise Decree 15811. Tran sm utation of Possession 15912. Instru m ent Creating Trust - Construction 15913 . Trust of Movable Property 15914. Declaration of Trust - Divesting of Ownersh ip 15915. Trust und er M oham m edan Law 160

16. Principle Underly ing the Proviso 16017. Agreem ents Contrary to Principles of M oham m edan Law 16118. Section 10 of Limitation Act, 1908, and section 5 Tru sts Act 16219. Section 60, CPC, 1908, and section 5, Trusts Act, 1882 16320. Ag reem ent Contrary to Christian law 163

6. C rea tion of trust 1631. Scope 1652. Section 229, Com pan ies Act, 1913 and section 6, Trusts Act, 1882 166

3. Th ereb y - Mean ing of 1664. Instru m ent of Trust - Alm ost Tripartite Transaction 1675. W ithout Declaration - W hether Trust can be Implied? 1676. Requisites - Three Certainties of Trust 1677. Ce rtainty of W ords 168

Pu rpo se to be Ascertained by Facts and Circum stances 169Erro rs - True Significance of Instrum ent 169Precatory W ords to be Av oided 169

Death of Beneficiary - Effect 1698. Certain ty of Subject-matter 1709. Certain ty Objects 171

Certain ty as to Beneficiary an d The ir Interest 171Vague Direction of Testator 172Ascerta inm ent of Object and Subject of Tru st 173Do nation Certificate - By Co mpany in Liquida tion 173Deity 173

Disc retionary Trust 174Tru st for Charitable Purpose 174M em orand um of Com promise and Power-of-Attorney 175Staff of Bank 175

10. Un certainty - English Law 17511. Trusts Void for Un certainty as to Pro perty and to Beneficiaries -

Distinction 17612. Intention to Create a Trust 176


10/40

The Indian Trusts Act, 1882

13. Sham Transactions 1 7 7

14. Intention of Gra ntor Will Preva il 17715. Necessity for Clear Inten tion 17716. Nec essity of Co m m unic ation to the Beneficiary 178

17. Transfers the Tru st-pro pe rty to the Tru stee 178Different from English Law 17918. Certain of Trust Deed - True Test 17919. Su pple m entary Deed - Effect 17920. Sham an d Fictitious Deed 17921. Usufructuary Mo rtgage and Sale Deed - No Trust Created 17922. Instrumen t Creating Trust - Co nstruction 18023 . Co nstruction of Instru m en t of Trust - Pu rpo se 18024. Construc tion of Deed - Recitals Su bo rdina te to O pe rativ e P art 18025. Secret Tru st 18126. Intention - O ral Eviden ce 18227. Oral Tru st 18428. Oral Evidence as to Secret Tru sts in W ills 18429. Trust Crea ted by Will 18430. Transfer of Pro perty - M ean ing 18531. No Transfer of Ow nersh ip - N o Trust Created 18532. Trust - Transfer of Imm ovab le Pro pe rty to Oneself 18533. Trustee is O wn er of Tru st Pro perty 18634. Express Tru st 18635. Implied Trust 18636. Illusory Tru st 18837. De claration of Trust 188

Evidence of De claration to be Clear and Distinct 18838. Credit Entries - W heth er Dec laration 18939. Creation of Wakf - M oha m m eda n Law 190

40. Va lidity of Wakf 19041. Section 3 of M ussalm an Wakf Validity Act, 1913 19042. Tru st in Favo ur of Society 19043 . Death of Beneficiaries - Clau se in Tru st Deed - A pp oin tm en t of Tru stee 19044. Co ncerne d Deity Identifiable - N o Am bigu ity 19045. Money in Dharmarda JQiata 191

46 . Creation of Trust for Ch arity - No n-Perfo rman ce of Ch arity - Effect 19147. Gift by Disciples to G uru 191

48. Om ission to A pp oin t a Truste e - Effect 19249. Aw ard Setting Term s of Trust - N ot Bad 19250. Sections 6 an d 34 - Ob ligation in N atu re of Tru st 19251 . Sections 3 and 130 of Transfer of Prop erty Act, 1882 and sections 5 an d 6

of this Act ' 19252. Specified Purp ose - Lim itation an d Trust Act 19353 . Revoc ation of Trust an d Validity 193


11/40

Contents xxi

54. Subseq uent Con duct 19355 . Com prom ise Decree 19356. Validity of Trust 19457. Co nstitution of Trust - Communication of Trustee - Test of Co mpleteness 194

58. Trustee and Cestui Que

Trust - Same Person 19559. Con stitution of T iu s t- Com mu nication to Trustee 1957. W ho m ay create trusts 195

1. Co m petent to Co ntract 1962. Cap acity to Contract 1963. Law : Section 11, Contract Act 1974. M inor's Contracts 1975. Majority Act 197

6. M oham m edan Personal Law 1987. Bu rden of Proof 1988. M inor's Fraud: Con version of Co ntractual Ob ligation to Torts - Validity 1999. False Rep resentation by Minor - Equ itable Rem edy - Refund of

Consideration 20010. Infant of the Age of Discretion - Remedy un de r Specific Relief Act 20111. M ino r's Liability to Refund Co nsideration 20112. No M isrepresentation or Fraud by Minor - Effect 20113. Suit by and Ag ainst Minors - Doctrine of Restitution 20214. Age of Majority 20315. Person of Sound Mind 20416. Who May Create Trust 204

The Cro w n 204Co rporate Bodies 204Infants 204Alien 204Lunatics 205Convict 205

17. Trust of H indu Joint Family Prope rty 20518. Sub-section (b): Trusts by Minor 20519. Principal Civil Co urt of Original Jurisdiction 20620. Object of Construing Instrum ent Creating Trust 20621. Validity of Trust - Determination 206

8. Su bje ct of Trust 2081. Scope 2082. Tru st 2083. Beneficiary 2094. Beneficial Interest 2095. Beneficial Interest under a Subsisting Trus t 2106. Property Transferable to the Beneficiary 2107. Pro per ty Inalienable by Statute 2108. Prop erty Inalienab le by Reason of Public Policy 211


12/40

xxii The Indian Trusts Act, 1882

9. Trust of Movable Prop erty Situated Abro ad10. Chose-in-action11. Property W hen Capable of Being Held on Trust

9. Who may be beneficiaryDisclaimer by beneficiary1. Scope2. May3 . Beneficiary4. M eanin g of Beneficiaries, in section 11, Bihar Agricultural Incom e-tax

Act, 19385. W ho m ay be Beneficiary

The CrownUnborn Child

Unborn Child - Australian PositionCorporationAlienSettlor and His WifeCreditors - Weather Beneficiaries

6. Doc trine of Acceleration of Sub sequ ent Interests10. Who may be trustee

No one bou nd to accept trust

Acceptance of trustDisclaimer of trust1. W ho ma y be Trustee

The CrownAlienCorporationMarried WomenInfant

ConvictIllegitimacyInsolventBeneficiary as trusteeExecutorDonor

2. Acceptance of Trust3. Accep tance of Part of Tru sts

4. M ode of Acceptance5. Accep tance by Acquiescence6. Trust Co m plete - Possession to Trustee7, Trust Accep ted - No Defence Ag ainst Trus t Av ailable8. No n-accep tance of Tru steeship - De ath - Effect9. Disclaimer

211211211

212212

212213213

213214214214

214214215215215215

215215

215216217

217217217

218218

218218218218218219219219

219220220220220221


13/40

10.11.

12.13.14.15.16.17.

Disclaimer Distinguished from ReleaseModes of Disclaimer

Disclaimer by DeedOther Forms of Disclaimer

Time for DisclaimerDelay in DisclaimerProof of DisclaimerEffect of DisclaimerCosts of DisclaimerJurisdiction of Court

C o n t e n t s xxi i i

2 2 1

2 2 1

2 2 1

2 2 1

2 2 2

2 2 2

2 2 2

2 2 2

2 2 2

2 2 3

CHAPTER 111

OF THE DUTIES A N D LIABILITIES O TRUSTEES

11. Tru stee to execu te trust 2241. Prin ciple of the Section 225

Jurisdiction of Co urt in Emergency 225Jurisdic tion to be Exercised with Great Caution 225Ceremony of Testator's Grand-daughter and Litigation Expenses ofWidow 225Sale of Property 226

2. Land Acqu isition Act, 1894 and Trusts Act, 1882 - Acquisition of Trust

Pro perty - No Conflict in Prov isions 2263. English Law 2264. Exceptions 2275. W here the Beneficiary is Incom petent to Contract 2276. Modification by Beneficiaries to Trust 2277. Modification of Du ties of Trustees - Pow er of Beneficiaries 2278. Ad m inistration of Trust by Co-trustees 2279. Duty to Obey the Directions of the Settlor 227

10. Appoin tment of trustee - G ende r Bias 22811. Ap poin tm ent of Com mittee of Trust 228

12. Trustee to inform him self of s tate of t rust property 22 81. Scope 2292. Duty of Trustee 2303. New Trustees 2304. Transfer of Trust Property to Himself 2305. To get in Trust-moneys 231

6. Delay in Getting in Trust Property 2317. Retention of Trust Money by Co-trustee 2318. Resigna tion by One of the Co -trustees - Effect 2319. Discretion of Trus tee not Absolute 231

10. Trustees are not Insurers 23211. Insufficient or Haza rdous Security 232


14/40

xxiv The Indian Trusts Act, 1882

13. Tr uste e to protect t i t le to t rust prop erty 232

1. Scope 2332. Duty to Protect and Preserve Trust-property 2333. Successive Renewal of Lease - A.P. Charitable and H ind u R eligious

Institutions and Endowments Act, 1966 and Madras Hindu Religious

and Charitable End ow me nts Act, 1951 2344. M ismanag eme nt of Trust-prope rty 2345. Trustee m us t bring Ac tions, etc. 2366. Suit by De Facto Trustee 2367. Suit by Trustee 2368. Suit by Trustee Ag ainst Banker for Tru st M one y 2379. Suit Between Co -trustees 237

10. Reg istration 237

11. Du ty to Repair Trust Pro perty 23712. Validity of Lease of Tem ple Prop erty for Repair - Religious En do wm en ts

Act (20 of 1863) 23713. Letting an d Cu ltivation 23814. Protection of Timbe r 23815. Cu stod y of Title Dee ds 23816. Trustee ma y Place Trust Mo ney in a Bank as an Interim Inve stme nt 23817. Trustee s m ust Ob tain Possession of Pro perty 23818. Bom bay Pub lic Tru sts Act, 1950, section 50(ii) 23919. A.P. Charitable and Hin du Religious Institutions and End ow m ents Act

(30 of 1987) - Possession of Lessee no t Ad verse 23920. Trustee no t Liable for bonafide Action 239

14. Tru stee no t to set up t i t le ad ver se to be nef iciar y 2391. Du ty of Trustee no t to set-up Adv erse Title or;Ks tertii 2402. Wh at a Trustee should not do 2403. Aid an y Title 2414. Trustee canno t Challenge Trust 241

15. Care requ ired from truste e 2411. Scope 2432. Degree of Ca re Req uired of a Tru stee 2433. Theft by Othe r - Liability of Tru stee 2444. Trustee Acting Foolishly 2455. Sale of Trust Prop erty - Decree Ob tained by Fraud - Effect 2456. Loss Occasioned by Ag ent of Trustee 2457. Trustees Exem ption Clause 245

8. Wilful Neg lect or Defau lt Ca usin g Loss to Beneficiary - Liability ofTru stee ' 245

9. Ne gligen ce of Co-trustee 24610. Policy of Insu ranc e 24611. Ca re as to Cu stody of Title-Deed 24612. Care in Investm ent of Fu nd s 246


15/40

Contents xxv

13. Trustee to Keep Control over Trust Fund 24714. Resignation by one of the Co-trustees - Effect 24715. Trustee Lending Fu nds of Tem ple to his Relative - Act not Protected

un de r section 15 24816. Trustee not to Invest his Ow n Money 24817. Validity of Lease of Tem ple Property for Repair - Religious En dow m ents

Act 20 of 1863) 24816. Co nve rsion of perisha ble property 248

1. Rule in Howe v. Lord Dartmouth 2492. Limits to Application of the Rule 2493. Onus 2494. U nless an Intention to the Con trary may be Inferred 2495. When Trustees may Convert Perishable Prope rty 2496. Property of a W asting N ature 2507. Fu ture or Rev isionary Interest 250

17. Tru stee to be impa rt ial 2501. Scope 2502. Choice of Investm ents 2513. W here the Trustee has a Discretionary Powe r 2514. Disc retionary Pow er of Trus tee - Interference by Cour t 251

18. Trus tee to prevent wa ste 2521. Scope 2522. Du ty to Protect and Preserve Trust-pro perty 2523. Jurisdic tion of Court to Interfere un der the Section 2524. Tru st in Succession - Suit for Injunction to Prevent W aste 2535. No Injunction in Cases of Perm issive Waste 253

19. Accou nts and informat ion 2531. Threefold Du ty of Trustee 2542. Duty to Deliver Accounts 2543. Trustee to Keep Clear and Distinct Accoun ts 2544. Trustee Must not Mix Private Prop erty with Trust Prop erty 2555. Ex-trustee's Liability for Rendition of Accounts 2556. No Obligation Tow ards Strangers 2557. Gift to Family Deity - W hether Right to Accoun ting Exists 2558. Who may Dem and Information 2569. Expenses for Information 256

10. Suit for Accounts Against Trustees 25611. Acquiescence by Beneficiary - Effect 25712. M easu re of Liability 25713. Back Accoun ts - Co urt's Pow er 25814. Cost of Litigation in Suit for Accounts 258

Costs When Awarded to Beneficiaries 258Costs When Aw arded to Trustees 259


16/40

XXVI The Indian Trusts Act, 1882

20. Inve s tm ent of t rus t -m oney 259

1. Scope 2 6 2

2. Applicability 2 6 2

3. Section 20 and section 15 of Tru sts Ac t 2624. Section 35, Bombay Public Tru sts Act an d section 20, Tru sts Act 263

5. Income-tax Act, 1961, section 80-1 an d Incom e of Tr ust 2636. Trust-m oney 2637. Debenture 2638. Investmen ts - Trustee's Du ties 2649. Degree of Care 2 64

10. Pow er of Investment Co ntained in Trust Instrum ent 26411. Inve stm ents - Truste es Discretion 26512. Tru stee's Discretion - Interference by C ou rt 265

13. Investm ent on Personal Security 2

6514. Lending Money on Second M ortgages 26515. Purch ase of Ho use 26616. Cla use (e) 26617. Clau se (f) 266

20A. Pow er to purchase red eem ab le s tock a t a pr em ium 2661. Ge neral 2672. Secu rities 267

2 1. M or tgage o f l and p ledg ed to Go vern m ent unde r Ac t 26 o f 187 1—De po s i t i n Go vernm ent Sav ings Bank 2671. Scope 2672. Secu rities 2683. Immovable Property 2684. M ortgage 268

22 . Sa le by t rus tee d i rec ted to se l l w i th in spe ci f ied t im e 2691. Scope 270

2. Discretion of Trustees to Extend Time for Sale 2703. Sale 2714. Trustee 2715. Civil Co urt of Original Jurisdiction 271

23. L iab ility for brea ch of trust 2721. Scope 2752. Section 23 not Con trolled by section 15 2753. N atu re of a Breach of Trust 276

4. Active Breach of Tru st 2765. Passive Breach of Trust 2766. Frau d 2777. Distinction betw een Fraud and M isrepresentation 2788. Actual and constructive fraud 2789. Fraud mu st Deceive and Cause Dam age 279


17/40

Contents xxvii

10. Fra ud by Silence 27911. Duty to Speak 28012. Filing of Frau dulent Case - Co nsequen ces 28113. Instances of Fraud 28214. M isrepresentation 28315. Misrepresentation and Fraud 28316. M isrepresentation of Fact and Op inion 28417. M isrepresentation on a Point of Law 28418. Breach of Trust - When to be Pleaded 28519. Trustee to Act like a Pru den t Man 28520. Ac tions of Trustee Fettered by Som ebody Else - Effect 28521. Trustee Acted un de r Comp etent Legal Advice - No Defence 28622. Suit for Breach of Trust aga inst Banker 28623 . Breach of Trus t - Person Who is Neither Trus tee Nor Beneficiary 28624. Breach of Trust - Com mo n Account to be Taken 28625. Breach of Trust by Father, Trustee-for-life - Suit 28626. Breach of Trust - Rem oval of Trustees 28727. Breach of Trust - Liability of Expenses Incurred by Trustees 28728 . Breach of Trust - Between Beneficiary and Trustee - Enforcing Trust

Ob ligations again st Transferee 28729. Breach of Trus t - by Solicitor Firm - Position in New Zealand 287

30. Liability for Breach of Trust 288N atu re of Trust Imm aterial 288

31. Civil and Criminal Proceed ings, Both can go Hand in Hand 28832. Breach of Trust - Earlier Services of Trustee 28833. Breach of Trust - Sui t - All Parties must be Before Co urt 28934. When Trus tee Liable for more than he Received 28935. Liability of Estate of Deceased Trustee 28936. Liability of Retired Tru stee 289

37. Measure of Liability 29038. Breach of Tru st - Effect of Rem une ration , Investment, etc. 29039. Lim itations on Liability of Trus tees 29040. Fraud of Beneficiary 29041. Concurrence of Beneficiary 29142. Acquiescence in the Breach 29143. Onus of Acquiescence of Beneficiary 29244. Breach of Trust - Discretion of Court 293

45 . Wilful Default 29346. Beneficiary has a Right to Indem nity 29347. Beneficiary cann ot Repudiate bonafide Acts of Trustee 29448. Liability to Pay m ent of Interest 294

General Laches 294Award of Interest 294


18/40

XXV111 The Indian Trusts Act, 1882

Gen eral Liabilities of 4% Interest per An num 294Assignment of Share in Partnership 295Award of Interest as Damag es 295

49. Rule of Damdupa t - Applicability 29650. Section 73 Con tract Act, section 1 Inte rest Act, 1978 (14 of 1978) and

section 23 , Trus ts Act, 1882 (2 of 1882) 29751. Interest un de r Interest Act, 1978 (14 of 1978) and section 23 , Trusts

Act, 1882 (2 of 1882) and section 80, the Negotiable Instru m entAct, 1881 (26 of 1881) 297

52. Sections 229 an d 230 of Companies Act, 1913 and section 23 of Trus ts Actand section 48 of Provinc ial Insolvency Act, 1920 297

53 . M anager of Joint Hin du Family - Receipt of Interest - Effect 29854. Clause (b): Un reason able Delay in Paying Money to the Beneficiary 29855. Clau se (e) 29856. Investment - Absence of Indep ende nt V aluation 29857. Clau se (f): Ap plicab ility 29858. Illustration (e) 29959. Illustration (f) - Pride v. Fooks 29960. Sections 23, 94 and 95 of Trusts Act 29961. Charitable Trust - Ad ministration by H igh Covirt 300

24. No se t -off a l low ed to t rus tee 300Scope 301

25. N on - l iab i l i ty for predec essor s defau l t 301Scope 301

26. No n- l ia bi l i ty for co- t rus tee s defau l t 301Jo in ing i n receipt for con form ity 3021. Trustees to Act like an Ordinary Prude nt Man 3022. Non-liability in case of Co-trustee's Default 3033- Exceptions to the rule 3034. Gross Negligence of one Trustee - Liability of Co-trustee 3045. Breach by som e Trustees - W hole Body of Trustees need n ot be Sued 3046. In the Absen ce of an Express Declaration to the Contrary in the

Instrument of Trust 3047. Clause (b): W hen a Trustee Allows his Co-trustee to Receive Tru st

Property 3058. Clause (c): W here the Trustee becomes Aw are of a Breach of Trust

Committed or Intended by His Co -trustee 3059. Trustee not Liable for Joining in Receipt for Con formity 305

10. Joint Receipt of Money - Liability of Trustee(s) 30511. Money in hand for Longer Period - Liability of Trustee 30612. Money Spent in Act of Convenience 306

27. Several liability of co trustee 306

Contribution as between co trustees 3061. Scope 307


19/40

Contents xxix

2. Several Liability of Co -trustees 3073. Bank ruptcy of Trustee 3084. Sure ty's Right in Bankruptcy of the Principal 3085. Co ntribution as between Co-trustees 309

6. Suit for Co ntribu tion 3097. Liability of Represe ntatives of the Deceased Tru stee 3098. Contribu tion as to Costs of Suit 3099. Im pou ndin g Fund in Cou rt 310

10. Con tribution wh en not Allowed 31011. Excep tions to the Rule of Contr ibution - English Law 310

W here a Solicitor-trustee has Instigated the Breach 310Where a Trustee has Benefited by the Breach 311

W here a Trustee is also a Beneficiary 31112. Tru stees and Beneficiaries 31213 . Lessee 31214. Person s Acquiring Interest by user and Occu pation 31215. M ortgagee 31216. Reversioners 312

28. N on - l ia bi l i ty of t rustee pa yin g w i tho ut not ice of t ransfer bybenef ic iary 312

Scope 31329. Lia bil i ty of t rustee w he re ben eficiary s interest is forfei ted to

Government 313Scope 313

30. Ind em ni t y of t rus tees 3141. Scope 3142. Burden of Proof 314

CHAPTER IVOF THE RIGHTS A N D POWERS OF TRUSTEES

31. Righ t to t i t le -deed 3151. Object 3152. Right to Possess Instrum ents 3153. Trustee s and Executors 3164. Shebait 3175. Married Wom en 3176. Tenants Ln Tail or for Life 3177. G uardian s of Minors 3188. Co urt of W ard s 3199. Co mmittees of Lunatics and Idiots 319

10. Receiver 31932. Righ t to reim bursem ent of exp ens es 319

Rig ht to be recoup ed for er roneou s over-pa ym ent 3201. Scope 321


20/40

KX The Indian Trusts Act, 1882

2. Trustee's Three Rights to Reim bursem ent of Expenses 3213. Trustee W rongfully Ap pointed 3224. Properly Incurred 3225. Reim bursem ent/Indem nity of Trustee as to Legal Advice 322

6. W hat Expenses Allowed 322Monies Spent in bonafide Litigation 322Costs in Respect of A ppo intm ent 323Costs Incurred Prior to Ap po intm ent 323Travelling Expenses 323Paym ents M ade in the Shape of Public Subscription 323Mon ey Spent in Preservation of Trust Prope rty 323Indemnity 323Extraordinary Expenses 324

7. Expenses of Ca rrying on Business 3248. Rights of Cre ditor of Tru stee 3249. Subrogation - M eaning 324

10. Cre ditor's Right of Subrogation - Its N ature 32411. C red itor's Relief of Sub rogation w he n Ava ilable 32612. Ch ange of Tru stees - Effect on C red itor 's Right 32613 . Trustee Person ally Liable 32714. Tem ple Co mm ittee - Liability of Trustee - Festival Ex pe nd iture - Effect 32715. W hat Expenses Disallowed 32716. Trustee Borrow ing Money - Effect on Cr edito rs Right 32817. Interest on Co sts 32818. Set off of Deb ts Du e by Tru stee 32819. Trustee of Tw o Estates 32820. Trust Estate Fails - Recovery of Exp enses 32821. Expenses Co nstitute a Lien on Pro perty 32922. Trus tee's Lien Entitled to Priority 32923. Lien, how Enforced 32924. Lien does not Extend to Tru stee's Agent 32925. O verp aym ent to the Beneficiary 32926. W here Trustee is also a Beneficiary 33027. Necessary Parties in Proc eeding s for Inde m nity 33028. Sections 14, 32 of Trusts Ac t 330

33. Righ t to in de m nit y from gain er by breach of t rust 3311. Scope 3312. Indem nity - M eaning 3313. Sections 13 and 33 of Tru sts Act 3324. Beneficiary Ga ining Ad van tage from Breach of Tr us t 3325. Effect of Beneficiary's Co mplicity 3326. Im po un din g Beneficiary's Interest 3327. Fraud 332


21/40

Conte?its xxxi

34. Right to apply to Court for opinion in management of trust property 3321. Scope 3342. Section 34, Tru sts Act and section 92, Civil Procedu re Co de 3353. This section and sections 41 and 63(b) of Tamil Nadu Hindu Religious

and Charitable Endow m ents Act, 1959 3354. Section 3 4, Trusts Act and section 7, Ch aritable and Religious Tru sts Act 3355. Sections 34 and 48 of Trusts Act 3366. Jurisdiction of Civil Court - Serious allegations of Fr au d/Fo rg ery -

M ysore Religious & Ch aritable Institu tions Act (7 of 1927) 3367. Op inion, Adv ice or Direction 3368. Any Trustee may Ap ply 3379. Ap plication un de r the section - Nature of 337

10. Co urt under section 34 of Trusts Act 33711. Exercise of Jurisdiction by the Cou rt - Two Co nditions 33812. Pow ers of Co urt under section 34 33813. Power of Cou rt only to be Exercised for Private Tru sts 33914. Ap plication to Sell Trust Property by Trustee - Procedure 34015. Pow er of Co urt to Authorise Sale 34016. Pow er of Co urt - Perm ission to Deviate from Trust Deed 34017. Power of Cou rt - Arrang em ents to Reduce Tax Burden 34018. Po wers of Cou rt - Section 34, Trusts Act; section 43 , Trustees an d

Mortgagees Act; section 10, Official Trustees Act and ChanceryCo urt in England 341

19. Estoppe l and Notice 34520. Cou rt may Au thorise Trustee to Raise Money for Purposes of Trust 34521. M adras Hind u Religious and Charitable Endo wm ents Act, 1951

(as Applicable to M alabar Region of Kerala), sections 20, 23 and 30 346Unan imity or Majority 346

22. Ex traordinary Jurisdiction of Co urt 347

23. Ignorance of C ou rt's Gu idance - Effect 34824. Appeal 34825. Letters Patent (Calcutta) 34826. Disso lution of Trust 34827. Exem ption of Trust Prop erty from W ealth Tax 34928. M anagem ent of Trust 34929. Necessary Parties 34930. Grant of Go vernm ent Land 349

31. Public Cha ritable Trust 35035. Righ t to set t lem ent of accounts 352

1. Cestui Q ueTrust Entitled to Relief -P rin cipl es 3522. Action for Settlement of Accounts 3523. Parties to such Action 3524. Right is Confined to the Actual Fund 3525. Suit for General Accounts after Long Lapse of Time 3536. Settlemen t of Accou nt Narrow ly Watched by C ourts 353


22/40

xxxii The Indian Trusts Act, 1882

36. G ener al auth ori ty of t rustee 353

1. Scope 3542. Pow ers of Trustee s un de r the Section 3553. Vesting of Legal Estate in Tru stee - D ealing by Beneficiary or Trustee -

Permissibility 3574. Onus of Proof of Necessity 3575. M anagem ent of Trust Prope rty by a Co-Trustee 3576. Trus t and Gra nt of Pensio n 3587. Pension, Gratuity and Prov ident Fun d 3588. Sections 34 and 36, Trusts Act 3589. Lease of Temple Property - Presu m ption and Onus 358

37. Po we r to sel l in lots and ei ther b y pu blic auct ion or private contract 3591. Po we rs of Trus tee un de r the Section 3592. Proper Ad vertisemen t Necessary in case of Public Au ctions 3593. Right of Trustee to Sell Tru st Pro perty 3604. Sale by Private Con tract 3605. Deleg ation of Power of Sale 3606. Sections 34 and 37 of Trus ts Act; section 7 of Ch aritable an d Religious

Trusts Act and sections 7 an d 10 of Official Tru stees Act 3617. Sections 2 and 7, Ch aritable an d Religious Tru sts Act (14 of 1920) -

Co urt and its Jurisdiction 361

8. Special Ap peal from an Interim Ord er of a Single Judg e - M aintain abilityund er Allahabad H igh Court Rules - Ap peal against the Or der ofDistrict Judg e - M aintainability 362

9. Rev ocation of Perm ission for Sale of Land - Sections 36(2) an d 41E ofBom bay Public Tru sts Act (29 of 1950) 363

38. Pow er to se l l unde r specia l con di t ion s po we r to bu y- i n and re-se ll 365Tim e al lo w ed for sel l i ng trust property 3651. Scope 3652. Pow er to Postp one Sale 3663. Inad equ ate Price - Trustee Liable 3664. Fiduciary Position - Onus 3665. Con ditions of Sale 3666. Depreciatory Co ndition s 3667. Time for Sale 3678. Discretion as to Sale 3679. Sale of Trust Pro perty by Public Au ction 367

3 9. Power to convey 3 671. Scope 3682. Joint Sales by Tru stees 368

40. Pow er to vary inves tm ents 3681. Scope 3682. Onus of Proof 3693. Variation 3694. Co nsent in W riting 369


23/40

Contents xxxiii

41 . Pow er to app ly property of min ors, etc. , for their m ainte nan ce, etc. 3701. Scope 3702. Guardian 3713. Discretion of Trustees 3714. M inor having Contingent Interest 3715. Administrator of an Estate 371

42 . Pow er to g iv e receipts 3711. Scope 3722. Acceptance of Rent after Default 3723. Qu estion of Title 3724. Any Trustees or Trustee 3725. Religious or Charitable Trusts 372

43. Pow er to com poun d , e tc . 3731. Scope 3742. Applicability of the section to Religious T rusts 3743. Power to Com pound Debts 3744. Goo d Faith is the Test 3745. Unanim ous Consent 3746. Onus on B eneficiary to Prove mala fide 3757. Co mprom ise Relating to an Office of Public Trust 375

8. Compromise at the Expense of Trust Estate 3759. Acting Together 37510. Sole Acting Trustee 37511. Power of Sole Trustee 37612. Sections 43 and 48 of Trusts Act 37613 . Approval of Trustees D ecision to Com prom ise L itigation - Position

in Bermuda 37644 . Po w er to several t rustees of wh om one d i sc la ims o r d ies 376

1. Scope 3772. Vacancy of Trustees - Effect 3773. Modes of Disclaimer 3784. Sections 44 and 76 of the Trusts Act 378

45. S u s p e n s i o n of t rus tee s po w ers by decree 3791. Scope 3792. Hered itary Trustees 379

CHAPTER V

O THE DISABILITIES O TRUSTEES46. Tru stee cann ot reno un ce after acceptance 381

1. Scope 3812. Term ination/Resignation by the Trustee - Continuing Liability -

Australian Position 38147 Trustee cannot delegate 382

1. Scope 382


24/40

x x x i v The Indian Trusts Ad 1882

I. Proper Delegation - Two Essential Conditions 383

3. Principles Underlying sections 47 and 48, against Rules of Delegation 383

4. Co-trustee 3 8 5

5. Sections 46 and 47 of Trusts Act - Rules against Renunciation of theTrust and Delegation of Functions by Trustee 386

6. Trustees must Exercise Prudence in Selection and Supervision of Agents 3867. Where Delegation is a Matter of Necessity 387

8. Fiduciary Duties not Capable of Delegation 387

9. Position of Trustees - Same as of Co-owners 388

10. Where Trustee has to Exercise Judicial Discretion 38811. Arrangements among Trustees for Management of Trust 38912. Delegation and Appointment of Proxy or Attorney 38913. Delegation and Appointment of Managing Trustee 389

14. Delegation and Assignment 38915. Violation of section 47 - Effect 389

48. Co trustees cannot act singly 3921. Scope 393

2. Co-trustees - Joint or Several Authority 3943. All Trustees to Act Collectively Except where the Instrument of

Trust Otherwise Provides 395

4. Position of Trustees - Same as Co-owners 397

5. Sections 34 and 48 of Trusts Act 3976. Appointment of Managing or Executive Trustee - Validity 397

7. Splitting of Rent 397

8. Managing Trustee - Powers 397

9. Lease by Trustees through Attorney 398

10. Jewellery Sold by some Trustees 398I I . Case of Public Trust Different 39812. Failure to Consult Co-trustees - Question of bona fides 39813 . Refusal of Co-trustee 39814. Joint Responsibility of Trustees 39915. Death of Co-trustee-Effect 39916. Trust Property Should be under Control of all Trustees 317. Necessity for Concurrence of all Trustees 40018. Execution of Mortgage by Some of the Trustees - Validity 40019. Acknowledgment of Debt by one Trustees - Validity 40020. Receipts for Money 40021. Borrowing 400

22. Suit by Co-trustee against Non-trustees - Maintainability 40023. Defending the Suit by Trustees 40124. Suit by Trustees against Co-trustees 40125. Suit by Managing Trustees 40226. Non-joinder of all Trustees - Suit not Maintainable 40227. Reference to Arbitration 402


25/40

Contents xxxv

28. Forma Panperis 40229. Suit by Trustees - All Trustees must Ordinarily Join Together and

Sue - Exception to this Principle 40230. Religious Endow ment - Suit by one Trustee against An other Co-trustee -

When 40331. Proof of Bankruptcy 40332. Suit against Legal Representatives of M anaging Trustee 40333. Execu tion Petition on behalf of Trust 404

49. Control of discret ionary pow er 4041. Scope 4042. Princip le Ap plicable to Public Trusts 4043. Rule Laid under sections 49, 51, 52 of the Trusts Act 4044. Discretion and Du ty Distinguished 4055. Interference by Co urt 405

50. Tru stee m ay not charge for servic es 4061. Scope 4062. General Rule 4073. Exception 4074. Solicitor-trustee 4075. Right to Re-imbursement for Expenses 4086. Constructive Trustee 408

51. Tru stee m ay not us e trust property for his o w n profit 4081. Scope 4082. Rule Applies to all Persons in Fiduciary Position - Purchase of Debts 4093. Rule Laid Dow n un der sections 49, 51,52 of Tru sts Act 4094. Section 46, Partn ership Act and sections 51,66 of Trusts Act 4095. Disability of Trus tee and its Rem oval 4106. Trust Money Han de d over to a Person - Effect 4107. Con tract of Sale - Misapplication by Trustee of Money already Paid 4108. Don or Donating Property to Create Trust 410

52. Tru stee for sale or hi s agen t m ay not bu y 4111. Scope 4112. Security Deposit - N atur e - Debt or Trust 4123. Purch ase of Trust Property by Trustee 4124. Trustee Purch asing Prope rty as Agen t of Third Party 4135. Non-m erg ing of Position of Buyer and Seller - Effect 4136. Purchase by Trustee from Himself and from his Cestui Q ue Trust 4137. Pu rchase by near Relative of Trus tee 414

53. Trus tee m ay not bu y benef ic iary s in terest wi th out per m iss ion 414Tru stee for pur chase 4141. Applicability 4142. Pu rchase of a Beneficiary's Interest 4153. Depa rture from English Law 415


26/40

v The Indian Trusts Act, 1882

4. Rule Ex tends to all Pers ons in Fidu ciary Position 4155. Breach of Tru st 4166. Sale by Trustee to his Wife 4167. Person wh o has Recently Ceased to be a Trustee, Buying

Trus t Pro per ty - Validity 41654. Co- t rus tees m ay no t l en d to on e o f the m se lv es 417

1. Scope 4 1 7

2. Ind ian Co ntract Act, sections 155,156 and 157 417

CHAPTER VIOF THE RIGHTS A N D LIABILITIES OF THE BENEFICIARY

55. R igh t to rents and pro fi ts 4191. Righ ts of Beneficiary 419

2. N atu re of Beneficiary's Interest 4193. A ppe al 4204. Sections 3 , 55 and 56 of Tru sts Act - Execution of Dec ree 420

56. Righ t to speci f ic exec ut ion 420Righ t to t ransfer of po sse ss ion 4211. Righ t to Sue for Enforcem ent of Trus t 4222. Right to Co m pel Sale 4233. Delay in Execu ting Term s of the Tru st 4234. O pin ion of Majority of Beneficiaries 4235. Sections 3 ,55 & 56 - Execution of Decree 4236. Rep resentative s of Testato r m ay Institute Suit 4237. Stranger to a Co ntract - Right to Sue 4248. Trustee m ay be Restrained from Violating His Du ty 4249. Right to Transfer of Possession 424

10. W ithho lding of Pro perty by Tru stee - Perm issibility 42411. Beneficiary Imp leaded as Resp onde d - Ap peal can not Execute Decree 425

12. Beneficiary w ith Lim ited Inte rest 42513. Trust Created in Favour of Cred itor Alone - No tice Given - They can

Claim to be Beneficiaries 42514. W ho can Ap ply for Exe cution of Tru st 42615. Restraint on An ticipation 42616. Principle U nde rlying the Do ctrine 42717. Persons Incom petent to Alienate 42718. Com petency to Alienate un der H indu Law 427

19. Com petency to Alienate under M oham med an Law 42920. Com petency Executors or Ad ministrators 42921. Com petency of M inors - un de r sections 28 and 29 of the Gu ard ian

and W ards Act, 1890 43022. Co mp etency of Official Assignees and Receivers 43023. Com petency of Charitable Institution, Shebait or Mutmvalli 43124. Lun atic or Idiot - See the Ind ian Lun acy Act IV of 1912 4 3 1


27/40

Contents xxxvii

25. Vatandar s Interest 43126. The M urshidabad Act 43127. M adra s Imp artible Estates Act 43128. Narva Ho lding 431

29. Investment of the Com pensation Money 43130. Purchase of Other Lands 43231. La nd includes Buildings 43232. Modification of Duties of Trustees 433

57. Rig ht to insp ect and take cop ies of instru m ent of t rust acco unt s, etc. 4341. Right Extend s to Op inions of Cou nsel 4352. Suit by Beneficiary for Accounts - Practice and Proc edure 4353. Knrta no t Strictly Liable to Accounts 435

4. Trustees, Shebaits, Executors and Ad m inistrators, etc. 4365. Ch aritable Prope rties 4366. Ow ner with Limited Interest 4367. Karta of a Mitakshara Joint Family 436

58. Rig ht to transfer ben eficia l interest 4371. Rule 4372. Scope 4383. Subject to the Law for the Time Being in Force 438

4. Notice of Assign ment to Trustees 4385. Reasons for Notice 4396. Rule in Dearie v . Hall 4397. Essentials of such Notice - English Law 4398. Assignee Takes Subject to Equities 4399. Section 6 M arried W om en's Prope rty Act and section 58, section 78(a)

of Trusts Act 44010. Section 4, Incom e-tax Act, 1922 and section 58, Trusts Act, 1882 440

11. Beneficial Interest 44159. Rig ht to sue for exec utio n of t rust 4411. Scope 4422. Trus t shall no t Fail for W ant of Trus tee 4423. Co urt 4424. Applicability 4425. Where for any Other Reason the Execution of a Trus t Becomes

Impracticable 4426. Alienation by Trus tee - Right of Beneficiary to Bring Suit for Possession 4437. Pos ition of Stake Holder in Chit Transac tion - Same as Trustee 443

60. Righ t to proper trustees 44 31. Two Valuable Rights 4452. Tru stee 's Death in the Life-time the Testator 4453. Tru stee's Death after Hav ing Acted as Trustee 4454. Principles Applicable in Appointing New Trustees 445


28/40

XXXVU1 The Indian Trusts Act, 1882

5. Suit for Ap poin tm ent of Ne w Trustees - G rou nd s for Rem oval 4466. Inhe rent Jurisdiction of Co urt 4477. Reference to Arb itration by Co urt 4478. Ap pea l 4479. Ap pointm ent of Ad ditional Trustees 447

10. Proper Pers ons 44811. Alien 44812. Person Dom iciled Ab road 44813 . Person in Insolvent Circum stances 44814. Rescission of M ortgage on M ortga gee 's Failure to Perform H is Pa rt 44915. Illegality un de r Insolve ncy Act 44916. Cestui Que Tru st 45017. Un less the Perso nal Law of the Beneficiary Allo w s O th er w ise 450

61. R igh t to co m pe l to an y act of du ty 450

1. Scope 4 5 0

2. Even Partial Ow ner m ay Ob tain Injunction 4513. Co urt canno t Act in a Sum ma ry M anner un der this section 4524. Co ntract— Go vernm ent as Beneficiary 452

62. W rongful purchase b y t rus tee 4521. Principle un de rlyin g section 62 4532. Scope 4 5 3

3. Wrongful Pur chas e 4544. Ratification by Beneficiary 4545. Such Oth er Expenses (If Any) as he ha s Properly Incur red in the

Preservation at the Prop erty 4556. Judgm ent-debtor has No Two Rights 455

63. Fo l low ing trust property into the ha nd s of third per son s 457Into tha t in to w hic h i t ha s be en conver ted 457

1. Basis of the Ru le 4 5 8

2. Scope 4593. Doctrine of Pra gm atism and Trust 4624. Claim by Official Liq uid ato r 4625. Section N ot Exhaustive 4626. Alienation by Trustee - Rem edy Available to Beneficiary 4637. Mixing Trust-Money w ith Oth er is Proper - If Draw ings from Mixed

Fund Pro per 4638. Trust Am oun t Mixed Up with Other Assets of Trustee - Later Trustee

Becomes Inso lven t an d Official Tru stee A pp oin ted - Effect 4649. Vesting of Pro perty in Trus tee - Essential 464

10. Doctrine of Tracing - Its N atur e and Limits 46411. Right to Follow Trust Property into the H an ds of Third Partie s 46512. The Principle Ap plies to All Perso ns in a Fiduc iary Ca pac ity 46513 . W here Alienee is a Vo lunteer 46614. Som ething Existing in Specie 466


29/40

Contents xxxix

15. Tru st-mo ney Invested in Tr uste e's Business—Effect of Tr uste e'sInsolvency 467

16. Or the H an ds of His Legal Representative or Legatee 46817. Trust Act - Settlement of Acco unt cann ot be Followe d 468

18. Su bseq uen t Purch aser H aving No tice Merely of Trust Ins trum en t - Effect 46819. Illustrations to the section 46820. Pro per ty of Dissolved Trad e Union with its Presiden t 469

64. Sa vin g of rights of certain transferees 4691. Scope 4702. Applicability 4723. Section 64 Exception to section 63 4734. Perso n in Fiducia ry Relationsh ip - Effect of sections 64 and 96 of

Trusts Act 4735. Mo ney Passing in Circulation 4736. Pro perty 4737. Clause (a): Transferee in Goo d Faith for Co nsid eratio n 4748. Tran sfer of Pro perty Act, 1882 (4 of 1882) 4749. English Law 475

10. Conv eyance 47511. Mo ney, Currency No tes or Nego tiable Instrum ents 475

65. Ac qu isi t ion by trustee of t rust property wr ong fully converted 47 51. Scope 4762. Defaulting M ortgage e Pu rcha sing Pro perty from Strange r - Effect 476

66. Righ t in case of ble nd ed property 4761. Scop e 4772. English Law 4793. Section 46, Partnership Act, and sections 51, 66 of Trusts Act 4794. Pre sum ptio n Ag ainst Breach of Trust 4795. Blending by Banker 4806. Mixing Trust Money with O ther is Prop er - If Dra win gs from Mixed

Fund Proper 4807. Trust Am oun t Mixed-Up with Other Assets of Trustee - L ater Trustee

Becomes Inso lven t and Official Trustee A pp oin ted - Effect 4818. Trustee Mixing-Up Trust Prop erty w ith His O w n - Beneficiary Entitled

to that Property 4819. Inso lvenc y of Trustee 481

10. Bu rden of Proof 482

67. W ron gful em pl oy m en t by partner-trustee of trust property forpar tnership purp oses 482

Scope 48368. Liab ility of beneficiar y join ing in breach of trust

1. Scope 4842. Im po un din g Beneficiary's Interest 4843. Principle 485


30/40

xl

69.

70 .

71.

72.

73 .

4.5.6.

1 IK nu un rus s rai, iu« .

Both Original and Derivative Interest can be Im po un de dPosition of Married W om an English Law Different All Wh o Claim unde r H im

Rights and liabilities of beneficiary's transferee

CHAPTER VIIO VAC ATING THE OFFICE OF TRUSTEE

Office how vacated1.2.3.4.

Scope DischargeInsolvency

Power of Revocation of TrustDischarge of trustee1.2.3.4.5.6.7.8.

9.

Discharge of trusteeCla use (c)Clause (d)Clause (e)Clause (f): Removal by CourtDuties of Executor and Trustee DifferenceInsolvency N o ipso facto D ischargeTill Accounts Rendered No DischargeMisconduct of Trustee N o ipso facto Removal

Petition to be discharged from trust1.2.3.4.5.

Proceedings for Discharge Sufficient ReasonCasesCostsEffect of Discharge

Appointment of new trustees on dea th, etc.1.2.3.4.5.6.7.8.

9.10.11.12.13.14.15.

Appointment of TrusteesWhen Appointment of Trustee is MadeAppointmen t of Trustee how a nd by W homPowe r given by Instrumen t of TrustDonee's Powers Its Delegation and ExerciseCasesSpecial Power in Specified EventsImproper Appointment

ConstructionUnder Statutory PowerAppointment of Trustee Resident out of IndiaCon sent of new TrusteeAppointment in WritingPower to Change the Number of TrusteesSections 73 and 74 Relationship

4 8 5

4 8 5

4 8 5

4 8 5

4 8 6

4 8 6

4 8 7

4 8 7

4 8 7

4 8 7

4 8 8

4 8 9

4 8 9

4 8 9

4 8 9

4 9

4 9

4 9

4 9 14 9 1

4 9 1

4 9 1

4 9 2

4 9 2

4 9 2

4 9 3

4 9 6

4 9 6

4 9 6

4 9 7

4 9 7

4 9 7

4 9 8

4 9 8

4 9 8

4 9 9

4 9 9

4 9 9

4 9 9

4 9 9

5


31/40

Contents xli

16. Un fit 50017. Unfit or Personally Incapa ble 50018. Surviving or Continuing Trustee 50019. Legal Represen tative 500

20. Rem oval of Trustees 50121. C ou rt's Primary Consideration 50122. G rou nd s for Removal 50123 . Setting up an Ad verse Title 50224. Denial of Trust 50225. Hostility betw een Trustees 50226. Om ission to keep Accou nts 50227. Breach of Trust 503

28. W ho may sue for Removal 50429. Reference to Arb itration by Co urt 50430. Proc edu re in Suits 50431. Pa rties 50432. Pleadings 50433. Costs 50434. Ap peal 50535. Trust s an d the Cour t Fees Act, 1870 - Scope - Co urt Fees - Schedule II 505

36. Prop erties Ded icated to Religion 50537. Test for Court-fee 50538. Ad valorem Court-fee 50639. Suits un de r section 92 of the Code of Civil Procedure 50640. Suit un de r section 92, CPC - Prohibition 50741. Section 92, CPC - Death of On e of the Ap plicants 50942. Section 92, CPC and Section 69, Partne rship Act - Prohibition 51043. Interest 51244. Defect as to Num ber of Ap plicants 51345 . Suits un der the Religious Endow m ents Act 51346. Rem oval of Several Trustees 51347. Claim for Specific Performance of a Co ntract for Executing a Deed of Trust 51348. Suit of Ap poin tm ent of Mutawalli 51349. M adras Hin du Religious Endo wm ents Act 51450. W rit for Consideration of the Application of the LR of the Deceased Tem ple

Priest - M adras H ind u Religious En dow ments Act 51451. Suit for Declaration by W orshippers of Temple 51452. Mitakshara Law and Trust Prop erty 51553 . Prop erty held in Trust 51554. Res Judicata 516

74. Ap pointm ent by Court 517Rule for selecting ne w trustees 5171. Scope 5182. Applicability 518


32/40

x T h e I n d i a n T r u s t s A c t 1 8 8 2

5 1 9

5 1 9

5 1 9

5 2

5 2

5 2

5 2

5 2

5 2

5 2

5 2 1

5 2 1

5 2 1

5 2 1

5 2 1

5 2 2

5 2 2

5

5

5 2 2

5 2 3

5 2 35

5 2 3

5 2 4

5 2 5

CHAPTER VIIIOF THE EXTINCTION OF TRUSTS

77. Trus t h o w ext in guis hed 5261. Scop e 5262. Discha rge of Trustee s 5273. Clause (a): W hen its Pu rpose is Co mp letely Fulfilled 5274. Clause (b): Wh en its Purpose becomes Unlaw ful 5275. Clause (c): W hen the Fulfilment of the Trust becom es Im possib le 5276. Cyprus Do ctrine 5287. Oth erw ise 5288. Extinguishm ent of Trust - Provision in Trust De ed 5289. Clause (d): Revoc ation of Tru st 528

10. Princip les of N atu ra l Justice 52811. Su it for De claratio n 529

78. Re voc at ion of t rust 5291. Scop e 5302. U nu sua l Provisions 530

3.4.5.6.7.8.9.

10.11.12.13.14.15.

16.17.18.19.

Section 73 and section 74 - RelationshipApp ointment by Court - When M adeProcedureM ode of Ap poin tme nt of Trustee - Bom bay Public Trust ActParties and Notice Principle Civil Court of Original JurisdictionUnfitness - Both Physical and by MisconductCostsAp poin tme nt of Trustee as to a pa rt of TrustSeparate set of TrusteesA ppo intm ent of Receiver by Co urt - PermissibilityPrinciplesW ho may be A ppointed

Public Charity, Court may Appoint Persons Excluded by SettlorBeneficiaryOrder of Court - ConclusiveAppeal

75. Vesting of trust property in new trusteesPowers of new trustee1.2.

3.

ScopeEnglish Law

Legal Representative76. Survival of trust

1.2.3.

ScopeCasesTrust wh en Reverts to Original Fo under


33/40

Contents xliii

3. Province of Co urt 5304. Equ itable Exception 5315. W ills and Trusts, Estoppel against an Executor, Adm inistrato r,

Legatee, or Trustee 5316. Estoppel against the Ow ner w here Property has been Treated as Wakf 5337. Estoppel in Pre-emption Cases 5348. Cla use (a): Revocation w ith the Co nsent of Beneficiaries 5359. Clause (b): Pow er of Revocation Expressly Reserved 535

10. Clause (c): Trust in Favour of Creditors 53611. Principle Un derlying 53612. Clause (c) and English Law 53713 . Ind irect Benefit to Assessee 53714. For such Purp ose - Interpretation 53715. Policy Ho lders - Right against Insurance Co m pany 537

79. Re vocat ion not to defeat wh at t rus tees have du ly do ne 537Revocation not Retrospective 537

CHAPTER IXOF CERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS

80. W here ob lig at i on in nature of t rust is created 538

1. Scope 5382. Con structive Trust 5383. Con structive Trust and Resulting Trust 5394. Fiduciary Re lationship/C onstructive Trust 5395. Fiduciary Du ty - State of Mind of the Person Assisting in Breach of

Du ty and Fraud 5396. Remedial Con structive Trust and Institutional Con structive Trust 5397. Bailee 5408. Pa rtne r 540

9. De Facto Trustee 54081. W here it do es not appear tha t t ransferor in ten de d to d i sp os e of

ben eficial interest 540

82 . Transfer to on e for con sider at ion paid by anoth er 540

83. Trust incapa ble of execu t ion or execu ted w i tho ut e xh au st in gtrust prope rty 54 11- Scope 5412. Resulting Trust 543

3. Tru sts Incapab le of Execution 5444. Doctrine of Cypres 5445. W here the Trust is Com pletely Executed w ithou t Exhau sting the Trust

Property 5456. Section 10(2), Incom e Tax Act, 1922 an d section 83 , Tru sts Act 5457. This section is not Applicable to Em ployees Prov ident Fu nd S46


34/40

The Indian Trusts Act, 188 2

84 . Transfer for i l lega l pu rpo se 5 4 7

1. Scope 5 4 7

2. Pub lic Policy 5 4 8

3. Exception to Pari Delicto Do ctrine 5484. Void Sale 5495. Assu mp tion 5496. W here the Illegal Purpose is no t Carried into Exec ution 5497. Partial Execution of Illegal Pu rpo se 5508. W here the Transferor is no t as Gu ilty as the Tra nsfere e 5509. Defeat the Provisions of An y La w 551

10. Possession of a Fra ud ule nt Transferee 55111. Assistance of Co urt 55112. Repealed Act 551

85. Beq ues t for i l lega l pu rpos e 552Beq ues t o f wh ich r evoca t ion i s p reven ted by coe rc ion 5521. Scope 5522. An d the Revocation of the Bequest is Prevented by Co ercion 5533. English Doc trine of Du ress - Ap plicability 5534. Coercion as a Grou nd of Invalidating a Con tract 5545. Instances of Coercion 5546. An Act Forbidde n by the Penal C od e 5567. Plea ding an d Proof 5568. Prejud ice - M eanin g of 557

86. Transfer pursua nt to resc in dab le contrac t 5571. Scope 5572. W here Property is Transferred in Pu rsuan ce of a Co ntract

wh ich is Liable to Rescission 5573. Fraud 5584. M istake 5585. Tru sts an d Societies 558

87. De btor be co m ing creditor s repre senta t ive 559Interest 559

88. Ad van tage ga in ed by f iduciary 559

1. Basis of the Rule in the section 5612. Scope 5643. Applicability 569

4. Doc trine of Unjust Enrich me nt an d section 88, Tr ust s Act 5705. Fiduciary Relationsh ip and Do ctrine of Unjust En richm ent 5716. Trustee or Execu tor 5717. Partn er 5718. Surviving Partne r 5729. Retiring Partn er 572

10. Pa rtne rs and Ag ents - Section 88 and section 90 573


35/40

Contents xlv

11. Par tner sh ip no t En titled to Benefit - Effect 57312. Liability of Partn er for Acco unts 57313 . Ren ew al of Lease by Pa rtner 57314. Purch ase M ade by Partner 573

15. Continuing Partner 57316. Agent 57317. Attorn ey 57418. Directors of Com pany 57419. M anag ing Director of a Co mp any 57520. Prom otors of a Com pany 57621 . Legal A dvise r 57622. M ortgagee 576

23 . Vendo r 57724. Tenants in Com mo n 57725. Oth er Fiduciary Persons 57726. Oth er Persons Bound in a Fiduciary Character 57827. Ass um ption 58028. Con structive Trust wh ich are not Resulting Trust 58029. Sections 88 an d 90 - No t exhau stive 58130. Gov ernmen t Granting Pattah to Widow 58131. Cred itor-debtor Relationship - Section 88 not App licable 58132. Uncle an d Niece - Fiduciary Relationship 58233. Bank Ho lding Am oun t in Fiduciary Capacity 58234. Illustration (c) 58235. Illustration (f) - Co nstruction 58236. Section 37 Partne rship Act and section 88 Trust Act 58337. Plots Earm arked by Co mp any for Public Building 58338. Interest of O ther Perso ns 58439. Transactions 58440. A dvan tage Gained by Fiduciary 584

89. Ad van tage gai ned by exerc ise of un du e inf lue nce 5841. Principle 5852. Scope 5853. W here U nd ue Influence is Proved as a Fact 5864. Illustrative Cases 5865. W hat Am oun ts to U ndu e Influence 5876. Un due Influence and Fraud 5877. Actual and Presum ed Un due Influence 5888. U nd ue Influence: English Princip les Inap plicab le 5899. Law as to U nd ue Influence 589

10. Fiduciary Relationship 58911. Instanc es 59012. Plea of U nd ue Influence Ag ainst Third Party 590


36/40

xlvi The Indian Trusts Act, 1882

13 . U nd ue Influence by Third Person 59114. Limitation 59115. Limitations on Presum ption 59116. Gift - U nd ue Influence 59317. Particular Instances of U nd ue Influence: Disqualified Pro priet ors 59518. Proof of U nd ue Influence 59519. Ho ld the Ad vantag e 596

90. Adv an tage ga ined by qua l i f i ed ow ner 5961. Princip le 5982. Scope 5983. English and Ind ian Law 6044. Sections 88 and 90 - N ot exha ustive 6045. Acquisition of Pro perty after Dism issal of Suit 6056. Person Inter ested 6057. Properly Incurre d 6058. Ap plicability of section 4(f) of Tru sts Act to Cha pte r 9 of Tr ust s Act 6059. Section not Inconsistent w ith section 63 of the Transfer of Pro perty Act 606

10. Transfer of Prop er ty Act, 1882 (4 of 1882) 60611. Section 4 , Orissa Land Reforms Act and this section 60712. Section 4(f) and section 19 of T.N. Ag ricul tural Relief Ac t and this sec tion 60713 . Ad vantag e Gained by Qualified Ow ner 60814. Co-ow ner 60815. Test of Liability of Co -ow ner 61116. De facto M anager of Joint H ind u Family - Fiduciary Rela tionsh ip - Effect 61117. Default in Pay m ent of Rent by Co-o wn er 61218. Suit for Partition by Co-sha rer 61219. Minor 61220. Co ntracts on Behalf of M inors 61321. Partne r 613

22. M ortgagee 61423. Lessee 62224. Purchase by M ortg age e-A ccep ted Position of Law 62325. Benefit of Provision M ust be Plead ed 62326. Deb enture-ho lders 62427. Receiver 62428. Vindhya Prad esh Gram Panchay at O rdin anc e (24 of 1949) an d this section 62429. Joint Family 625

30. Statuto ry 62791. Property acqu ired w ith notice of ex ist in g contract 627

1. Scope 6272. Acqu ire 6303. Vendee and Vendor 6314. Mo rtgagee 631


37/40

Conlerils xlvii

5. Deb tor and Creditor 6316. Lessee or Tenant in Possession 6327. Th is section an d section 26F of Bengal Tenancy Act 6328. Auction Purch aser 632

9. W hen Vendor Becomes a Trespasser 63210. Section 54 Transfer of Pro per ty Act and this section 63311. Section 3 , Specific Relief Act and section 91, Trusts Act 63312. Sec tion 40(2), T.P. Act, section 27(6) of Specific Relief Ac t and this section 63313 . Th is Act does no t affect section 22 of Lim itation Act 63414. This section an d section 53A, T.P. Act 63415. W hen section 52, T.P. Act and this section are not Ap plicable 63516. Lack of M utuality - Exception 635

92 . Pu rcha se by pe rso n contracting to bu y property to be he ld on trust 6351. Scope 6352. Ac cordingly 6363. Trustee and Co-trustee 6364. Legal Status of Promo tee of a Com pany 637

93. A dv an tag e secre t ly ga ined by on e of several com po un din g creditors 637Scope 637

94. Co nst ruct ive t rus ts in cases not exp ress ly provid ed for 638

95. O bl igor s du t ies , l iabi l i t ies and disab i l i t ies 6381. Scope 6382. Express and not Con structive Trustee un de r Com panies Act 6393. Stam p Du ty 6394. Proviso to the section 6405. Section 23(a) and (f) an d this section 6406. M ortgagee Possessing Prop erty in Fiduciary Capacity - Effect 6407. Sections 3 and 95, Trusts Act an d section 185 of Co m pan ies Act 640

96. Sa vin g of r ights of bonafide purch asers 6401. Scope 6412. Section 96 and section 59A of T.P. Act 6413. Pe rson in Fiduciary Re lationsh ip - Effect of sections 64 and 96 of the Act 6414. Co nstructive Trustee 6415. Any Law for the Time Being in Force 642

THE SCHEDULE.—STATUTE 642

SUITS AGA INST TRUSTEES ETC. A N DLIMITATION ACT

1. G ene ral 6442. Object of Statute of Lim itation 6443. Suits aga inst Trustees and their Representatives - Section 10 -

Limitation Act, 1963 6444. Corre spo nd ing section of Act No. 9 of 1908 645


38/40

xlviii The Indian Trusts Act, 1882

5. Ch ang es in the section of Lim itation Act 6456. Scope and Ap plicability 6457. M eaning of Ass ign 6488. Section 3 , Tru st Act, an d section 10, Lim itation Act 6499. Vested in Tru st for any Specific Pu rp os e 649

10. 'Once a Trust, alwa ys a Tru st' 65111. W hen is Suit nev er Barred - Section 10, Lim itation Act 65212. Trus tee - Section 3 of Tru sts Act and section 2(n) of Lim itation Act 65213 . Executors and Ad m inistrators 65514. Alleged Trustee m ust be O w ner of Prop erty 65615. No t being Assigns for Valuable Co nside ration 65616. Trust m ust be Express 65617. Ves ting 658

18. Trust Prop erty or Accou nts - Suit m ust be to Follow 65819. Benam idar 65920. Per son Entitled to Benefit of section 10, Lim itation Ac t 65921. Trustee de son tort, d e facto Trustee and Co nstructive Trustee -

Distinction 65922. Lim itation for Suit for Recovery of Tru st Pro perty Claim ed by

Ad verse Possession 66023. Ad verse Possession by Trustee 66024. Lim itation Act - Recovery of Possession - De claratory Relief 66125. Section 63 of Tru sts Act an d section 10 of Lim itation Act 66126. Tru st pro pe rty - Article 134, Lim itation Act, 1963 66127. Ca use of Ac tion 66228. Cases un de r Article 134 of Act, 1908 (Now A rticle 92 rea d w ith

Article 61 of Act of 1963) 66229. A case un de r Articles 144 an d 134B, Lim itation Act, 1908 -

Articles 65 an d 96 of Lim itation Act, 1963 66230. Starting Po int of Period of Lim itation— Article 61(a), Lim itation Ac t, 1963 663

31. Part VIII of Schedule of Limitation Act, 19 6 3 -A rt s. 92 to 96 Article 92 66432. Costs w he n aw ard ed to beneficiaries 67533. Costs w he n aw ard ed to trustees 67634. Lim itation Period again st Recipients of Tru st Pro per ty, in En gla nd 676

INTERPRETATION OF LAW ON TRUSTS

677

PRO VISIONS FOR INTERPRETATION OF TRUSTIn Corpus Juris Secundutn

1. Ge neral 6852. Necessity of con struction 6853 . Ap plication of gen eral rules of con structio n 685


39/40

Contents xlix

4. Fav ouring validity and effectiveness 6855. Fav ourin g beneficiaries or others 6856. Favou ring present trusts and vested interests 6857. W hole instrume nt or provision: surplusage 6858. M eaning of w ord s 6859. Repu gnancies 685

MO DEL TRUST DEEDS AN D FORM S

1. Declaration of Trust 6872. Deed for Transferring a Ho use upon Trust 6903. Trust Deed for a Ho spital 6904. Deed of Settlement w ith Appo intm ent of Trustees 6925. Disclaimer by a Trustee 6926. A sho rt form of disclaimer of trust to be endo rsed on the Trust-deed 6937. Ap pointm ent of new trustees 6938. Com position and arrangem ent with creditors— Guidelines 6949. Deed of com position by debto r and sureties to pay a com position of

50 p . in a rup ee to a trustee on behalf of the creditors 69410. Deed of assignm ent by deb tor for benefit of his creditors 69611. Inspectorsip deed for the purp ose of wo rking the debtors business for

the benefit of cred itors 69712. C haritable and religious endow men ts—C ontents of a trust deed 69813 . Trust deed for establishing and run nin g a School 69914. En dow m ent for scholarship to be aw arded to deserving persons for

Indu strial and Technical Education Abroad 70015. End ow m ent for establishing a Hin du Temple 70216. Tru st deed establishing an institute (non-sectarian) for recreation and

social intercourse for the male inhabitants of the city of 70317. Vo luntary conveyance of land to trustees as a site for a hosp ital un de r

the control of the trustees 70518. End ow m ent for establishing a daily new spape r in H indi 70619. Vo luntary conveyance of property to trustees of charity 70720. Disclaimer 70821. Separation deed betwe en husba nd and wife—G uidelines and

specim en forms 70922. Settlements— Contents and natu re of 71023 . Vesting dee d on the settlement of land 71224. Trust instrum ent on the settlement of land 71225. Settlement on m arriage of prop erty belonging to both spouses 71326. Marriage settlement wh ereby the father of the husban d enters into

a covenant to pay an annu ity to the wife dur ing h is life-time withprotective trust 715

27. Post-nuptial settlement by husba nd on himself, his wife and child ren 71528. Settlemen t of property by father on his m inor children 71629. Wakfs-Different classes of 717


40/40

1 The Indian Trusts Act 1882

30. Family settlem ent by way of Wakf Wakfs-Alal-Aulad) 71731. Wakf for public purposes 71832. Short Form of W ill 71933. Will in favour of wife and children 72034. A Com prehensive form of Will 72035. Codicil 72336. Codicil— Another form 72337. Release by a Residuary Legatee to Executor 72438. Release given by beneficiaries to the Executors and Trustees und er a Will 72439. Gift of Land or House 72540. General Power-of-Attorney 725

LAW COM MISSION OF INDIA

Sixteenth Report on the Official Trustees Act 1913 726Seventeenth Report on the Trusts Act 1882 734

APPENDICES

Appendix I.— The Indian Trustees Act, 1866 766Appendix II.— T rustees and Mortgagees Powers Act, 1866 779

Appendix III— The Charitable and Religious Tru sts Act, 1920 789Appendix IV.— The Religious Endo wm ents Act, 1863 793Appendix V.— The Charitable En dow m ents Act, 1890 799

Appendix VI.— The Official Trustees Act, 1913 804Appendix VII.— The M ussalm an W akf Act, 1923 816

Appendix VIII.— The M ussalman Wakf V alidating Act, 1913 831Appendix IX.— The Mussalman Wakf Validating Act, 1930 833Appendix X.— The Wakf Act, 1995 834

Appendix XL— The Public Wakfs (Extension of Limitation) Act, 1959 880Appendix XII.— The Benam i Transa ctions (Prohibition) Act, 1988 882

Appendix XIII. — The Benami Transactions (Prohib ition of the Right to RecoverProperty) O rdinance, 1988 885

Appendix XIV.— The Pow ers-of-Attom ey Act, 1882 886Appendix XV.— The Lim itation Act, 1963 888

• Subject Index 915

TRUST ACT-INDIAN

Documents

Transcript of TRUST ACT-INDIAN