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The Indian Trusts Act, 1882 MCQs Set-2
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1. Impartiality requires that trustee:
a. Favors eldest beneficiary
b. Treats all beneficiaries equally
c. Follows court blindly
d. Acts only on instructions
2. Where trustee has discretionary power:
a. Court always controls
b. Beneficiaries control
c. Government controls
d. Court cannot interfere if exercised reasonably and in good faith
3. Exercise of discretion must be:
a. Arbitrary
b. Reasonable and in good faith
c. Strictly equal always
d. Court-approved
4. Section 18 of the Indian Trusts Act, 1882 deals with:
a. Trustee to prevent waste
b. Accounts and information
c. Investment of trust-money
d. Trustee liability
5. Trustee must act when beneficiary in possession:
a. Transfers property
b. Requests information
c. Commits or threatens destructive or injurious act
d. Refuses income
6. Trustee’s duty in such case is to:
a. Ignore the act
b. Take measures to prevent waste
c. Transfer property
d. Inform court only
7. Section 19 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Accounts and information
c. Trustee liability
d. Investment
8. A trustee is bound to maintain:
a. Personal accounts
b. Oral records
c. Approximate details
d. Clear and accurate accounts
9. Trustee must provide information:
a. Only to court
b. At any time without request
c. At reasonable times on beneficiary’s request
d. Only annually
10. Information provided must relate to:
a. Trustee’s personal affairs
b. Amount and state of trust-property
c. Court proceedings
d. Government rules
11. Section 20 of the Indian Trusts Act, 1882 deals with:
a. Trustee to prevent waste
b. Accounts
c. Investment of trust-money
d. Beneficiary rights
12. Investment is required when trust-property:
a. Is immoveable
b. Is money not immediately required
c. Is movable
d. Is disputed
13. Investment must be made in:
a. Any business
b. Personal accounts
c. Real estate only
d. Authorized securities
14. Investment is subject to:
a. Beneficiary’s will
b. Trustee’s choice
c. Instrument of trust directions
d. Court order only
15. Securities may also be specified by:
a. State Government
b. Court
c. Central Government via notification
d. Beneficiary
16. Consent is required before investment when:
a. Trustee demands
b. Beneficiary is minor
c. There is a competent person entitled to income
d. Court orders
17. Such consent must be:
a. Oral
b. Written
c. Implied
d. Not required
18. The meaning of “securities” is derived from:
a. Indian Contract Act
b. Companies Act
c. Transfer of Property Act
d. Clause h of section 2 of Securities Contracts (Regulation) Act, 1956
19. Section 20A of the Indian Trusts Act, 1882 deals with:
a. Investment of trust-money
b. Power to purchase redeemable stock at a premium
c. Mortgage of land
d. Sale by trustee
20. A trustee may invest in securities even if:
a. They are unsecured
b. They are not authorized
c. They are redeemable and exceed redemption value
d. They are foreign
21. Purchase of redeemable stock at premium is:
a. Prohibited
b. Conditional
c. Allowed under Section 20A
d. Void
22. A trustee may retain redeemable stock:
a. Until resale
b. Until court order
c. For a fixed period
d. Until redemption
23. Section 21 of the Indian Trusts Act, 1882 deals with:
a. Investment restrictions
b. Mortgage and Government Savings Bank deposit
c. Trustee liability
d. Beneficiary rights
24. Section 20 does NOT apply to:
a. Future investments
b. Investments made after the Act
c. Investments made before the Act came into force
d. Unauthorized securities
25. Investment may be made on mortgage of:
a. Movable property
b. Immovable property pledged under Land Improvement Act, 1871
c. Government bonds only
d. Shares
26. Deposit in Government Savings Bank is allowed when trust-money:
a. Exceeds ₹10,000
b. Is below ₹5,000
c. Is exactly ₹3,000
d. Does not exceed ₹3,000
27. Section 22 of the Indian Trusts Act, 1882 deals with:
a. Trustee investment
b. Sale within specified time
c. Trustee duties
d. Mortgage rules
28. Where trustee extends time for sale, burden of proof lies on:
a. Beneficiary
b. Court
c. Trustee
d. Government
29. Trustee must prove that extension:
a. Was necessary
b. Was legal
c. Was profitable
d. Did not prejudice beneficiary
30. Burden does not lie on trustee if extension is authorized by:
a. Beneficiary
b. Government
c. Registrar
d. Principal Civil Court of original jurisdiction
31. Section 23 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Liability for breach of trust
c. Investment rules
d. Beneficiary rights
32. When a trustee commits breach of trust, he is liable to:
a. Pay penalty
b. Face imprisonment
c. Make good the loss caused
d. Transfer property
33. Trustee is not liable if breach is induced by:
a. Court
b. Government
c. Beneficiary’s fraud
d. Third party
34. Trustee is not liable if beneficiary:
a. Was minor
b. Objected
c. Filed suit
d. Consented without coercion or undue influence
35. Acquiescence by beneficiary requires:
a. Written consent
b. Full knowledge of facts and rights
c. Court approval
d. Trustee’s request
36. A trustee is generally not liable to pay:
a. Damages
b. Interest
c. Compensation
d. Costs
37. Trustee must pay interest where he:
a. Acts honestly
b. Has actually received interest
c. Follows instructions
d. Keeps accounts
38. Liability arises where breach consists of:
a. Immediate payment
b. Reasonable delay
c. Unreasonable delay in paying trust-money
d. Early payment
39. Trustee is liable if he:
a. Could not receive interest
b. Ought to have received interest but did not
c. Invested properly
d. Paid timely
40. Trustee is presumed liable where:
a. He denies liability
b. Beneficiary claims
c. Court orders
d. He is presumed to have received interest
41. In cases (b), (c), (d), trustee must pay:
a. Compound interest
b. No interest
c. Simple interest at 6% per annum
d. Market rate interest
42. In case of actual receipt of interest, trustee must:
a. Pay penalty
b. Return principal
c. Account for interest received
d. Pay double interest
43. Court may:
a. Fix higher penalty
b. Modify rate of interest
c. Remove trustee
d. Void trust
44. Failure to invest trust-money properly results in:
a. Simple interest
b. No liability
c. Penalty only
d. Compound interest with half-yearly rests
45. Use of trust-property in business makes trustee liable for:
a. Only principal
b. Either compound interest or net profits
c. Only simple interest
d. No liability
46. Option between profit and interest lies with:
a. Trustee
b. Court
c. Beneficiary
d. Government
47. Section 24 of the Indian Trusts Act, 1882 deals with:
a. Non-liability of trustee
b. No set-off allowed to trustee
c. Co-trustee liability
d. Successor trustee
48. A trustee cannot set-off:
a. Loss against profit
b. Profit against loss from another distinct breach
c. Expenses against income
d. Liability against duty
49. Set-off is disallowed when:
a. Same transaction
b. Same breach
c. Different and distinct breach
d. Court allows
50. Section 25 of the Indian Trusts Act, 1882 deals with:
a. Liability of trustee
b. Co-trustee liability
c. Non-liability for predecessor’s default
d. Set-off rules
51. A successor trustee is:
a. Always liable for predecessor
b. Not liable for acts or defaults of predecessor
c. Liable only for fraud
d. Liable for negligence
52. Section 26 of the Indian Trusts Act, 1882 deals with:
a. Non-liability for co-trustee’s default
b. Trustee liability
c. Beneficiary rights
d. Trustee duties
53. A trustee is generally:
a. Liable for all breaches
b. Not liable for co-trustee’s breach
c. Always liable
d. Jointly liable
54. This rule is subject to:
a. Sections 13 and 15
b. Section 23 only
c. Court discretion
d. Government rules
55. A trustee becomes liable if he:
a. Maintains accounts
b. Acts honestly
c. Delivers property without ensuring proper application
d. Seeks court help
56. Liability arises when trustee:
a. Prevents misuse
b. Fails to enquire about co-trustee’s dealings
c. Reports breach
d. Acts prudently
57. Trustee is liable if co-trustee retains property:
a. For reasonable time
b. With consent
c. As per instructions
d. Longer than reasonably required
58. Liability arises when trustee:
a. Discloses breach
b. Prevents breach
c. Conceals breach or fails to act
d. Reports immediately
59. A co-trustee signing receipt without receiving property is:
a. Liable always
b. Liable partially
c. Not liable merely due to signature
d. Liable for negligence
60. Protection applies when co-trustee:
a. Receives property
b. Signs for conformity only
c. Uses property
d. Transfers property
61. Section 27 of the Indian Trusts Act, 1882 deals with:
a. Indemnity of trustees
b. Several liability of co-trustees
c. Non-liability rules
d. Beneficiary rights
62. Where co-trustees jointly commit breach:
a. Only one is liable
b. Court decides liability
c. Each is liable for whole loss
d. Liability is divided equally
63. Liability also arises when one trustee:
a. Prevents breach
b. Enables breach by neglect
c. Reports breach
d. Acts honestly
64. Contribution between trustees applies when:
a. All are innocent
b. One is less guilty and paid loss
c. Court orders
d. Beneficiary directs
65. Where trustees are equally guilty:
a. Only one pays
b. Court distributes
c. Others must contribute
d. Government pays
66. A trustee guilty of fraud:
a. Can claim contribution
b. Cannot sue for contribution
c. Can recover fully
d. Is exempt
67. Section 28 of the Indian Trusts Act, 1882 deals with:
a. Transfer of trust-property
b. Liability of trustee
c. Non-liability of trustee paying without notice of transfer
d. Beneficiary rights
68. A trustee is not liable where he pays or delivers trust-property:
a. With notice of transfer
b. Without notice of vesting of beneficiary’s interest
c. After court order
d. With beneficiary consent
69. Such payment or delivery must be made to:
a. New transferee
b. Government
c. Trustee himself
d. Person entitled in absence of such vesting
70. Section 29 of the Indian Trusts Act, 1882 deals with:
a. Indemnity
b. Government forfeiture of beneficiary interest
c. Trustee liability
d. Co-trustee duties
71. When beneficiary’s interest is forfeited:
a. Trustee becomes owner
b. Property lapses
c. Trustee holds it for Government’s direction
d. Beneficiary retains rights
72. Directions for such property are given by:
a. Central Government
b. Court
c. Trustee
d. State Government
73. Section 30 of the Indian Trusts Act, 1882 deals with:
a. Trustee liability
b. Indemnity of trustees
c. Beneficiary rights
d. Investment rules
74. Trustees shall be chargeable only for:
a. All trust-property
b. Property of co-trustees
c. Moneys, stocks, funds and securities actually received
d. Court-controlled assets
75. Trustees are not answerable:
a. For their own acts
b. For acts of co-trustees
c. For beneficiary actions
d. For court orders
76. Trustees are not liable for acts of:
a. Beneficiary
b. Government
c. Banker, broker or other person holding trust-property
d. Court
77. Trustees are not liable for:
a. Voluntary losses
b. Intentional acts
c. Fraud
d. Insufficiency or deficiency of securities
78. Trustees are not liable for:
a. Personal negligence
b. Breach of trust
c. Voluntary acts
d. Involuntary losses
79. Section 31 of the Indian Trusts Act, 1882 deals with:
a. Right to title-deed
b. Trustee liability
c. Beneficiary rights
d. Investment rules
80. A trustee is entitled to possess:
a. Only trust-property
b. Only accounts
c. Instrument of trust and title documents
d. Beneficiary records
81. The documents must relate:
a. Partly to trust-property
b. Solely to the trust-property
c. To trustee personally
d. To beneficiary only
82. Right to possession of documents belongs to:
a. Beneficiary
b. Court
c. Government
d. Trustee
83. Section 32 of the Indian Trusts Act, 1882 deals with:
a. Trustee liability
b. Beneficiary rights
c. Right to reimbursement of expenses
d. Investment rules
84. A trustee may reimburse himself for:
a. Personal expenses
b. Expenses properly incurred in execution of trust
c. Court penalties
d. Government dues
85. Such expenses may be paid out of:
a. Trustee’s income
b. Beneficiary’s property
c. Government funds
d. Trust-property
86. Reimbursement includes expenses for:
a. Personal benefit
b. Realisation, preservation or benefit of trust-property
c. Litigation only
d. Investment only
87. Trustee may also incur expenses for:
a. His own benefit
b. Protection or support of beneficiary
c. Court purposes
d. Government
88. If trustee pays from his own pocket, he gets:
a. No right
b. Personal claim only
c. First charge on trust-property
d. Court order
89. Such charge includes:
a. Only principal
b. Only interest
c. Expenses without interest
d. Expenses and interest
90. Without court sanction, charge is enforced by:
a. Filing suit
b. Taking possession
c. Prohibiting disposition without prior payment
d. Government action
91. Court sanction refers to:
a. Supreme Court
b. High Court
c. District Court
d. Principal Civil Court of original jurisdiction
92. If trust-property fails, trustee may recover from:
a. Government
b. Beneficiary personally
c. Co-trustee
d. Court
93. Recovery is allowed when payment was made:
a. Without request
b. By mistake
c. At beneficiary’s request (express or implied)
d. Under coercion
94. Section 33 of the Indian Trusts Act, 1882 deals with:
a. Right to indemnity from gainer by breach of trust
b. Trustee liability
c. Beneficiary rights
d. Court powers
95. A person gaining advantage from breach must:
a. Retain benefit
b. Indemnify trustee
c. Share with beneficiary
d. Inform court
96. Indemnity is limited to:
a. Total loss
b. Estimated gain
c. Amount actually received
d. Court discretion
97. Where such person is a beneficiary, trustee has:
a. No remedy
b. Personal claim only
c. Right to sue
d. Charge on beneficiary’s interest
98. Trustee guilty of fraud:
a. Can claim indemnity
b. Cannot claim indemnity
c. Can claim partial indemnity
d. Depends on court
99. Section 34 of the Indian Trusts Act, 1882 deals with:
a. Settlement of accounts
b. Court directions in trust management
c. Trustee duties
d. Beneficiary rights
100. A trustee may apply to Court:
a. Only by suit
b. Without instituting a suit
c. Through beneficiary
d. Through government
101. Application is made for:
a. Litigation
b. Property transfer
c. Opinion, advice or direction
d. Registration
102. Application must relate to:
a. Complex disputes
b. Criminal matters
c. Questions of detail only
d. Management or administration of trust-property
103. Petition copy shall be served to:
a. Government
b. Court officers
c. Persons interested as Court thinks fit
d. Trustee only
104. Trustee acting in good faith on Court advice:
a. Is liable
b. Is deemed to have discharged duty
c. Is penalized
d. Must reapply
105. Costs of application are:
a. Fixed
b. Paid by trustee
c. Paid by beneficiary
d. At discretion of Court
106. Section 35 of the Indian Trusts Act, 1882 deals with:
a. Trustee powers
b. Settlement of accounts
c. Indemnity
d. Sale of property
107. Trustee is entitled to settlement when:
a. Trust begins
b. Beneficiary demands
c. Duties are completed
d. Court orders
108. Trustee may obtain:
a. Oral confirmation
b. Court decree
c. Written acknowledgment
d. Government certificate
109. Section 36 of the Indian Trusts Act, 1882 deals with:
a. Sale of property
b. Trustee liability
c. General authority of trustee
d. Indemnity
110. Trustee may do acts which are:
a. Arbitrary
b. Reasonable and proper
c. Beneficiary directed only
d. Court ordered only
111. Authority extends to:
a. Personal benefit
b. Realisation, protection or benefit of trust-property
c. Criminal acts
d. Government functions
112. Trustee may act for beneficiary who is:
a. Competent
b. Government
c. Not competent to contract
d. Court
113. Lease of trust-property without Court permission cannot exceed:
a. 10 years
b. 15 years
c. 21 years
d. 30 years
114. Lease must reserve:
a. Fixed rent
b. Minimum rent
c. Government rent
d. Best yearly rent reasonably obtainable
115. Section 37 of the Indian Trusts Act, 1882 deals with:
a. Trustee powers
b. Power to sell in lots, and either by public auction or private contract
c. Beneficiary rights
d. Court control
116. Trustee may sell property:
a. Only wholly
b. Only in parts
c. Together or in lots
d. Only by court
117. Sale may be conducted by:
a. Court only
b. Public auction or private contract
c. Government only
d. Beneficiary
118. Sale may occur:
a. Once only
b. At fixed time
c. Only after notice
d. At one or several times
119. Section 38 of the Indian Trusts Act, 1882 deals with:
a. Power to convey
b. Investment rules
c. Power to sell under special conditions and re-sell
d. Beneficiary rights
120. A trustee may insert stipulations regarding:
a. Beneficiary consent
b. Title or evidence of title
c. Court procedure
d. Government approval
121. Trustee may buy-in property at:
a. Private sale
b. Government sale
c. Court sale
d. Auction sale
122. Trustee may:
a. Cancel trust
b. Transfer beneficiary rights
c. Rescind or vary contract of sale
d. Appoint trustee
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