THE INDIAN TRUSTS ACT, 1882

PREAMBLE

What is the subject matter of the Indian Trusts Act, 1882?

It defines and amends the law relating to private trusts and trustees.

What is the Act number of the Indian Trusts Act, 1882?

Act No. 2 of 1882.

On what date was the Indian Trusts Act, 1882 enacted?

13th January, 1882.

What does the Preamble of the Indian Trusts Act, 1882 state?

It states that it is expedient to define and amend the law relating to private trusts and trustees.

What is the legislative purpose behind the enactment of the Indian Trusts Act, 1882?

To define and amend the law relating to private trusts and trustees.

CHAPTER-I

PRELIMINARY

What is the subject matter of Section 1 of the Indian Trusts Act, 1882?

It provides for the short title, commencement, local extent, and savings of the Act.

What is the short title of the Act?

The Indian Trusts Act, 1882.

When did the Indian Trusts Act, 1882 come into force?

On the first day of March, 1882.

To what territory does the Indian Trusts Act, 1882 extend?

It extends to the whole of India and the Andaman and Nicobar Islands.

Who has the power to extend the Act to the Andaman and Nicobar Islands or any part thereof?

The Central Government by notification in the Official Gazette.

What rules are not affected by the provisions of the Indian Trusts Act, 1882?

The rules of Muhammadan law as to waqf.

What relations are not affected by the provisions of this Act?

The mutual relations of the members of an undivided family as determined by any customary or personal law.

To what endowments does the Indian Trusts Act, 1882 not apply?

Public or private religious or charitable endowments.

To what type of trusts does the Indian Trusts Act, 1882 not apply in relation to war prizes?

Trusts to distribute prizes taken in war among the captors.

To which trusts does the Second Chapter of the Indian Trusts Act, 1882 not apply?

Trusts created before the first day of March, 1882.

What is the subject matter of Section 2 of the Indian Trusts Act, 1882?

It provides for the repeal of certain enactments.

Which enactments are repealed under Section 2 of the Indian Trusts Act, 1882?

The Statute and Acts mentioned in the Schedule annexed to the Act.

To what extent are the Statute and Acts repealed under Section 2?

To the extent mentioned in the Schedule.

In which territories do the repeals under Section 2 operate?

In the territories to which this Act for the time being extends.

What is the subject matter of Section 3 of the Indian Trusts Act, 1882?

It provides interpretation of certain terms used in the Act.

What is a “trust” under Section 3 of the Indian Trusts Act, 1882?

A trust is an obligation annexed to the ownership of property arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another or of another and the owner.

Who is called the “author of the trust”?

The person who reposes or declares the confidence.

Who is called the “trustee”?

The person who accepts the confidence.

Who is called the “beneficiary”?

The person for whose benefit the confidence is accepted.

What is meant by “trust-property” or “trust-money”?

The subject-matter of the trust.

What is meant by “beneficial interest” or “interest” of the beneficiary?

The right of the beneficiary against the trustee as owner of the trust-property.

What is meant by the “instrument of trust”?

The instrument, if any, by which the trust is declared.

What is meant by “breach of trust”?

A breach of any duty imposed on a trustee as such by any law for the time being in force.

What does “registered” mean under the Indian Trusts Act, 1882?

Registered under the law for the registration of documents for the time being in force.

When is a person said to have “notice” of a fact under the Act?

When he actually knows the fact, or but for wilful abstention from inquiry or gross negligence he would have known it, or when the information is given to or obtained by his agent under the circumstances mentioned in Section 229 of the Indian Contract Act, 1872.

What is the effect of expressions defined in the Indian Contract Act, 1872 in the Indian Trusts Act, 1882?

Expressions used herein and defined in the Indian Contract Act, 1872 shall have the meanings respectively attributed to them by that Act.

CHAPTER-II

OF THE CREATION OF TRUSTS

What is the subject matter of Section 4 of the Indian Trusts Act, 1882?

It provides for the lawful purpose of a trust.

For what purposes may a trust be created under Section 4 of the Indian Trusts Act, 1882?

A trust may be created for any lawful purpose.

When is the purpose of a trust unlawful under Section 4 of the Indian Trusts Act, 1882?

When it is forbidden by law, defeats the provisions of any law if permitted, is fraudulent, involves or implies injury to the person or property of another, or is regarded by the Court as immoral or opposed to public policy.

What is the effect of a trust created for an unlawful purpose?

Every trust of which the purpose is unlawful is void.

What is the effect when a trust is created for two purposes, one lawful and the other unlawful, which cannot be separated?

The whole trust is void.

What does the expression “law” include under the Explanation to Section 4 of the Indian Trusts Act, 1882?

Where the trust-property is immoveable and situate in a foreign country, it includes the law of such country.

What is the validity of a trust where property is conveyed to nurture female foundlings to be trained as prostitutes?

The trust is void.

What is the validity of a trust created to carry on a smuggling business and support the testator’s children from its profits?

The trust is void.

What is the validity of a trust where an insolvent transfers property in trust for himself during life and after his death for another?

The trust for the author during his life is invalid as against his creditors.

What is the subject matter of Section 5 of the Indian Trusts Act, 1882?

It provides for the creation of trusts of immoveable property.

When is a trust in relation to immoveable property valid under Section 5 of the Indian Trusts Act, 1882?

When it is declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or by the will of the author of the trust or of the trustee.

When is a trust in relation to moveable property valid under the Indian Trusts Act, 1882?

When it is declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or by the will of the author of the trust or of the trustee, or when the ownership of the property is transferred to the trustee.

What is the alternative method for creating a valid trust of moveable property apart from declaration by instrument or will?

By transferring the ownership of the property to the trustee.

Do the formal rules regarding declaration or transfer of trust of moveable property apply in all cases?

No, they do not apply where they would operate so as to effectuate a fraud.

What is the subject matter of Section 6 of the Indian Trusts Act, 1882?

It deals with the creation of a trust.

Under Section 6 of the Indian Trusts Act, 1882, subject to which provision is a trust created?

Subject to the provisions of Section 5.

Under Section 6 of the Indian Trusts Act, 1882, when is a trust created?

When the author of the trust indicates with reasonable certainty by words or acts the intention to create a trust, the purpose of the trust, the beneficiary, and the trust-property, and transfers the trust-property to the trustee unless the trust is declared by will or the author himself is the trustee.

Under Section 6 clause (a) of the Indian Trusts Act, 1882, what must the author indicate with reasonable certainty?

An intention on his part to create thereby a trust.

Under Section 6 clause (b) of the Indian Trusts Act, 1882, what must be indicated with reasonable certainty?

The purpose of the trust.

Under Section 6 clause (c) of the Indian Trusts Act, 1882, what must be indicated with reasonable certainty?

The beneficiary.

Under Section 6 clause (d) of the Indian Trusts Act, 1882, what must be indicated with reasonable certainty?

The trust-property.

Under Section 6 of the Indian Trusts Act, 1882, when must the trust-property be transferred to the trustee?

Unless the trust is declared by will or the author of the trust is himself to be the trustee.

Under Illustration (a) to Section 6 of the Indian Trusts Act, 1882, what is the effect where A bequeaths property to B having the fullest confidence that he will dispose of it for the benefit of C?

It creates a trust so far as regards A and C.

Under Illustration (b) to Section 6 of the Indian Trusts Act, 1882, does a bequest to B “hoping he will continue it in the family” create a trust?

No, it does not create a trust as the beneficiary is not indicated with reasonable certainty.

Under Illustration (c) to Section 6 of the Indian Trusts Act, 1882, does a bequest requesting B to distribute property among such members of C’s family as B thinks most deserving create a trust?

No, it does not create a trust as the beneficiaries are not indicated with reasonable certainty.

Under Illustration (d) to Section 6 of the Indian Trusts Act, 1882, does a bequest desiring B to divide the bulk of property among C’s children create a trust?

No, it does not create a trust as the trust-property is not indicated with sufficient certainty.

Under Illustration (e) to Section 6 of the Indian Trusts Act, 1882, does a bequest of a shop and stock-in-trade to B on condition that he pays A’s debts and a legacy to C create a trust?

No, it creates a condition and not a trust for A’s creditors and C.

What is the subject matter of Section 7 of the Indian Trusts Act, 1882?

It deals with who may create trusts.

Under Section 7 clause (a) of the Indian Trusts Act, 1882, who may create a trust?

Every person competent to contract may create a trust.

Under Section 7 clause (b) of the Indian Trusts Act, 1882, can a minor create a trust?

Yes, a trust may be created by or on behalf of a minor with the permission of a principal Civil Court of original jurisdiction.

Under Section 7 clause (b) of the Indian Trusts Act, 1882, whose permission is required for creation of a trust by or on behalf of a minor?

The permission of a principal Civil Court of original jurisdiction.

What limitation is imposed on the creation of trusts under Section 7 of the Indian Trusts Act, 1882?

It is subject to the law for the time being in force as to the circumstances and extent in and to which the author of the trust may dispose of the trust-property.

What is the subject matter of Section 8 of the Indian Trusts Act, 1882?

It deals with the subject of a trust.

Under Section 8 of the Indian Trusts Act, 1882, what must be the subject-matter of a trust?

Property transferable to the beneficiary.

Under Section 8 of the Indian Trusts Act, 1882, can the subject-matter of a trust be a merely beneficial interest under a subsisting trust?

No, it must not be a merely beneficial interest under a subsisting trust.

What is the subject matter of Section 9 of the Indian Trusts Act, 1882?

It deals with who may be a beneficiary.

Under Section 9 of the Indian Trusts Act, 1882, who may be a beneficiary?

Every person capable of holding property may be a beneficiary.

What is the subject matter of the provision relating to disclaimer by beneficiary under the Indian Trusts Act, 1882?

It deals with the renunciation of interest by a proposed beneficiary under a trust.

Under the provision relating to disclaimer by beneficiary, how may a proposed beneficiary renounce his interest under the trust?

By a disclaimer addressed to the trustee.

Under the provision relating to disclaimer by beneficiary, can a proposed beneficiary renounce his interest by conduct inconsistent with the trust?

Yes, by setting up, with notice of the trust, a claim inconsistent therewith.

What is the subject matter of Section 10 of the Indian Trusts Act, 1882?

It deals with who may be a trustee, acceptance of trust, and disclaimer of trust.

Under Section 10 of the Indian Trusts Act, 1882, who may be a trustee?

Every person capable of holding property may be a trustee.

Under Section 10 of the Indian Trusts Act, 1882, when must a trustee be competent to contract?

Where the trust involves the exercise of discretion.

Under Section 10 of the Indian Trusts Act, 1882, is any person bound to accept a trust?

No one is bound to accept a trust.

Under Section 10 of the Indian Trusts Act, 1882, how is a trust accepted?

By any words or acts of the trustee indicating with reasonable certainty such acceptance.

Under Section 10 of the Indian Trusts Act, 1882, what is meant by disclaimer of trust?

The intended trustee may within a reasonable period disclaim the trust instead of accepting it.

Under Section 10 of the Indian Trusts Act, 1882, what is the effect of disclaimer of trust by the intended trustee?

It prevents the trust-property from vesting in him.

Under Section 10 of the Indian Trusts Act, 1882, what is the effect of disclaimer by one of two or more co-trustees?

The trust-property vests in the other or others making them sole trustee or trustees from the date of the creation of the trust.

CHAPTER-III

OF THE DUTIES AND LIABILITIES OF TRUSTEES

What is the subject matter of Section 11 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to execute the trust.

Under Section 11 of the Indian Trusts Act, 1882, what is the primary duty of the trustee?

The trustee is bound to fulfil the purpose of the trust and to obey the directions of the author of the trust given at the time of its creation.

Under Section 11 of the Indian Trusts Act, 1882, when may the directions of the author of the trust be modified?

By the consent of all the beneficiaries being competent to contract.

Under Section 11 of the Indian Trusts Act, 1882, who may give consent where the beneficiary is incompetent to contract?

A principal Civil Court of original jurisdiction may give such consent.

Under Section 11 of the Indian Trusts Act, 1882, when is a trustee not required to obey the direction of the author of the trust?

When to do so would be impracticable, illegal or manifestly injurious to the beneficiaries.

Under the Explanation to Section 11 of the Indian Trusts Act, 1882, what is the deemed purpose of a trust for payment of debts unless a contrary intention appears?

To pay only the debts of the author of the trust existing and recoverable at the date of the instrument of trust, or if the instrument is a will, at the date of his death.

Under the Explanation clause (a) to Section 11 of the Indian Trusts Act, 1882, which debts are to be paid under a trust for payment of debts?

Only the debts of the author of the trust existing and recoverable at the date of the instrument of trust or at the date of his death if the instrument is a will.

Under the Explanation clause (b) to Section 11 of the Indian Trusts Act, 1882, how are debts not bearing interest to be paid?

Such debts are to be paid without interest.

What is the subject matter of Section 12 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to inform himself of the state of the trust-property.

Under Section 12 of the Indian Trusts Act, 1882, what must a trustee do regarding the trust-property?

The trustee must acquaint himself as soon as possible with the nature and circumstances of the trust-property.

Under Section 12 of the Indian Trusts Act, 1882, what must a trustee do where necessary regarding the trust-property?

He must obtain a transfer of the trust-property to himself.

Under Section 12 of the Indian Trusts Act, 1882, what must a trustee do regarding trust-moneys invested on insufficient or hazardous security?

Subject to the provisions of the instrument of trust, he must get in such trust-moneys.

What is the subject matter of Section 13 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to protect the title to the trust-property.

Under Section 13 of the Indian Trusts Act, 1882, what duty does a trustee have regarding suits relating to trust-property?

The trustee is bound to maintain and defend all such suits.

Under Section 13 of the Indian Trusts Act, 1882, what steps must a trustee take for preservation of trust-property?

Subject to the provisions of the instrument of trust, he must take such steps as may be reasonably requisite for the preservation of the trust-property.

Under Section 13 of the Indian Trusts Act, 1882, what factors must be considered while taking steps for preservation of trust-property?

The nature and amount or value of the trust-property.

Under Section 13 of the Indian Trusts Act, 1882, what must a trustee do regarding the title to the trust-property?

He must take reasonable steps for the assertion or protection of the title thereto.

What is the subject matter of Section 14 of the Indian Trusts Act, 1882?

It deals with the prohibition on a trustee setting up a title adverse to the beneficiary.

Under Section 14 of the Indian Trusts Act, 1882, can a trustee set up a title to the trust-property adverse to the interest of the beneficiary?

No, the trustee must not set up any title adverse to the interest of the beneficiary.

Under Section 14 of the Indian Trusts Act, 1882, can a trustee aid another person in setting up a title adverse to the beneficiary?

No, the trustee must not aid any title to the trust-property adverse to the interest of the beneficiary.

What is the subject matter of Section 15 of the Indian Trusts Act, 1882?

It deals with the care required from a trustee in dealing with trust-property.

Under Section 15 of the Indian Trusts Act, 1882, how must a trustee deal with the trust-property?

As carefully as a man of ordinary prudence would deal with such property if it were his own.

Under Section 15 of the Indian Trusts Act, 1882, when is a trustee not responsible for loss, destruction or deterioration of trust-property?

When he deals with the trust-property as a man of ordinary prudence would and there is no contract to the contrary.

What is the subject matter of Section 16 of the Indian Trusts Act, 1882?

It deals with the conversion of perishable or wasting trust-property.

Under Section 16 of the Indian Trusts Act, 1882, when does the duty of conversion of trust-property arise?

When the trust is created for the benefit of several persons in succession and the trust-property is of a wasting nature or a future or reversionary interest.

Under Section 16 of the Indian Trusts Act, 1882, what must the trustee do when the trust-property is of a wasting nature or a future or reversionary interest?

The trustee must convert it into property of a permanent and immediately profitable character.

Under Section 16 of the Indian Trusts Act, 1882, when is the trustee not bound to convert the trust-property?

When an intention to the contrary may be inferred from the instrument of trust.

Under Illustration (a) to Section 16 of the Indian Trusts Act, 1882, what should the trustee do where the trust-property consists of leasehold houses and no intention appears that they should be enjoyed in specie?

The trustee should sell the houses and invest the proceeds in accordance with Section 20.

Under Illustration (b) to Section 16 of the Indian Trusts Act, 1882, when should the trustee not sell the trust-property?

When the instrument of trust clearly shows that the property should be enjoyed in specie.

What is the subject matter of Section 17 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to be impartial among beneficiaries.

Under Section 17 of the Indian Trusts Act, 1882, what is the duty of a trustee where there are more beneficiaries than one?

The trustee is bound to be impartial.

Under Section 17 of the Indian Trusts Act, 1882, can a trustee execute the trust for the advantage of one beneficiary at the expense of another?

No, the trustee must not execute the trust for the advantage of one at the expense of another.

Under Section 17 of the Indian Trusts Act, 1882, what is the effect where the trustee has a discretionary power?

Nothing in this section authorizes the Court to control the exercise reasonably and in good faith of such discretion.

Under Illustration to Section 17 of the Indian Trusts Act, 1882, will the Court interfere where a trustee in good faith chooses one of the specified modes of investment though it affects the relative rights of beneficiaries?

No, the Court will not interfere if the discretion is exercised reasonably and in good faith.

What is the subject matter of Section 18 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to prevent waste of trust-property.

Under Section 18 of the Indian Trusts Act, 1882, when does the duty of the trustee to prevent waste arise?

When the trust is created for the benefit of several persons in succession and one of them is in possession of the trust-property.

Under Section 18 of the Indian Trusts Act, 1882, what must the trustee do if a person in possession commits or threatens to commit a destructive or permanently injurious act to the trust-property?

The trustee is bound to take measures to prevent such act.

What is the subject matter of Section 19 of the Indian Trusts Act, 1882?

It deals with the duty of the trustee to keep accounts and furnish information.

Under Section 19 clause (a) of the Indian Trusts Act, 1882, what accounts must a trustee keep?

The trustee must keep clear and accurate accounts of the trust-property.

Under Section 19 clause (b) of the Indian Trusts Act, 1882, what information must a trustee furnish to the beneficiary?

At all reasonable times, at the request of the beneficiary, he must furnish full and accurate information as to the amount and state of the trust-property.

What is the subject matter of Section 20 of the Indian Trusts Act, 1882?

It deals with the investment of trust-money.

Under Section 20 of the Indian Trusts Act, 1882, when must a trustee invest trust-money?

When the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust.

Under Section 20 of the Indian Trusts Act, 1882, in what manner must a trustee invest trust-money?

Subject to the directions in the instrument of trust, in securities or classes of securities authorised by the instrument of trust or specified by the Central Government by notification in the Official Gazette.

Under the proviso to Section 20 of the Indian Trusts Act, 1882, when is written consent required before making an investment?

When there is a person competent to contract and entitled in possession to receive the income of the trust-property for life or any greater estate.

Under the proviso to Section 20 of the Indian Trusts Act, 1882, whose consent is required for such investment?

The consent in writing of the person competent to contract and entitled in possession to receive the income of the trust-property.

Under the Explanation to Section 20 of the Indian Trusts Act, 1882, what is the meaning of “securities”?

It has the same meaning as assigned in clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956.

What is the subject matter of Section 20A of the Indian Trusts Act, 1882?

It deals with the power of a trustee to purchase redeemable stock at a premium.

Under Section 20A sub-section (1) of the Indian Trusts Act, 1882, can a trustee invest in securities redeemable at a value lower than the purchase price?

Yes, a trustee may invest in securities mentioned in Section 20 even if they are redeemable and the price exceeds the redemption value.

Under Section 20A sub-section (2) of the Indian Trusts Act, 1882, can a trustee retain redeemable stock, fund or security purchased under this section?

Yes, a trustee may retain such redeemable stock, fund or security until redemption.

What is the subject matter of Section 21 of the Indian Trusts Act, 1882?

It deals with mortgage of land pledged to Government under the Land Improvement Act, 1871 and deposit in Government Savings Bank.

Under Section 21 of the Indian Trusts Act, 1882, do the provisions of Section 20 apply to investments made before the Act came into force?

No, nothing in Section 20 applies to investments made before the Act came into force.

Under Section 21 of the Indian Trusts Act, 1882, does Section 20 preclude investment on mortgage of immoveable property pledged under the Land Improvement Act, 1871?

No, it does not preclude such investment.

Under Section 21 of the Indian Trusts Act, 1882, when may trust-money be deposited in a Government Savings Bank?

When the trust-money does not exceed three thousand rupees.

What is the subject matter of Section 22 of the Indian Trusts Act, 1882?

It deals with the sale of trust-property by a trustee directed to sell within a specified time.

Under Section 22 of the Indian Trusts Act, 1882, what is the effect if a trustee extends the time for sale beyond the specified time?

The burden of proving that the beneficiary is not prejudiced by the extension lies upon the trustee.

Under Section 22 of the Indian Trusts Act, 1882, when does the burden not lie on the trustee for extending the time of sale?

When the extension has been authorised by a principal Civil Court of original jurisdiction.

Under the Illustration to Section 22 of the Indian Trusts Act, 1882, does postponement of sale beyond the specified period automatically invalidate the sale?

No, the sale is not rendered invalid merely due to postponement.

Under the Illustration to Section 22 of the Indian Trusts Act, 1882, on whom lies the burden of proving that the beneficiary has not been injured by postponement of sale?

On the trustee.

What is the subject matter of Section 23 of the Indian Trusts Act, 1882?

It deals with the liability of a trustee for breach of trust.

Under Section 23 of the Indian Trusts Act, 1882, what is the liability of a trustee who commits a breach of trust?

He is liable to make good the loss which the trust-property or the beneficiary has thereby sustained.

Under Section 23 of the Indian Trusts Act, 1882, when is a trustee not liable for breach of trust due to the conduct of the beneficiary?

When the beneficiary by fraud induced the trustee to commit the breach.

Under Section 23 of the Indian Trusts Act, 1882, when is a trustee not liable if the beneficiary concurred in the breach?

When the beneficiary, being competent to contract, concurred in the breach without coercion or undue influence.

Under Section 23 of the Indian Trusts Act, 1882, when is a trustee not liable if the beneficiary acquiesced in the breach?

When the beneficiary subsequently acquiesced therein with full knowledge of the facts and of his rights against the trustee.

Under Section 23 of the Indian Trusts Act, 1882, is a trustee committing breach of trust generally liable to pay interest?

No, except in the cases specified in the section.

Under Section 23 clause (a), when is a trustee liable to pay interest?

Where he has actually received interest.

Under Section 23 clause (b), when is a trustee liable to pay interest?

Where the breach consists in unreasonable delay in paying trust-money to the beneficiary.

Under Section 23 clause (c), when is a trustee liable to pay interest?

Where the trustee ought to have received interest but has not done so.

Under Section 23 clause (d), when is a trustee liable to pay interest?

Where he may be fairly presumed to have received interest.

Under Section 23, what interest is payable in case (a)?

The trustee must account for the interest actually received.

Under Section 23, what interest is payable in cases (b), (c) and (d)?

Simple interest at six per cent per annum unless the Court otherwise directs.

Under Section 23 clause (e), what is the liability where the breach consists in failure to invest trust-money and accumulate interest or dividends?

The trustee is liable to account for compound interest with half-yearly rests at the same rate.

Under Section 23 clause (f), what is the liability where the breach consists in employing trust-property in trade or business?

At the option of the beneficiary, the trustee must account either for compound interest with half-yearly rests or for the net profits made.

Under Illustration (a) to Section 23 of the Indian Trusts Act, 1882, what is the liability where a trustee improperly leaves trust-property outstanding and it is lost?

He must make good the property lost but is not liable to pay interest.

Under Illustration (b) to Section 23 of the Indian Trusts Act, 1882, what is the liability where a trustee delays selling a house causing deterioration and fall in price?

The trustee is answerable to the beneficiary for the loss.

Under Illustration (c) to Section 23 of the Indian Trusts Act, 1882, what is the liability where a trustee unreasonably delays investing trust-money or paying it to the beneficiary?

The trustee is liable to pay interest for the period of delay.

Under Illustration (d) to Section 23 of the Indian Trusts Act, 1882, what option does the beneficiary have when the trustee fails to invest trust-money as required?

The beneficiary may charge the trustee with the principal and interest or with the securities that should have been purchased with intermediate dividends and interest.

Under Illustration (e) to Section 23 of the Indian Trusts Act, 1882, what is the liability where the trustee fails to invest trust-money as directed by the instrument of trust?

He is liable for the principal money and interest.

Under Illustration (f) to Section 23 of the Indian Trusts Act, 1882, what is the liability where the trustee fails to invest trust-money and accumulate dividends as directed?

At the beneficiary’s option, the trustee is liable for principal and compound interest or for the securities that should have been purchased with the accumulated dividends.

Under Illustration (g) to Section 23 of the Indian Trusts Act, 1882, what is the liability where the trustee sells trust securities for an unauthorized purpose?

At the option of the beneficiary, he must replace the security with intermediate dividends and interest or account for the sale proceeds with interest.

Under Illustration (h) to Section 23 of the Indian Trusts Act, 1882, what is the liability where the trustee sells trust land to a purchaser without notice of the trust?

At the option of the beneficiary, the trustee must purchase other land of equal value to be settled on the like trust or account for the sale proceeds with interest.

What is the subject matter of Section 24 of the Indian Trusts Act, 1882?

It deals with prohibition of set-off by a trustee for gains arising from another breach of trust.

Under Section 24 of the Indian Trusts Act, 1882, can a trustee set-off a gain from one portion of trust-property against a loss caused by breach of trust in another portion?

No, a trustee cannot set-off such gain against his liability.

What is the subject matter of Section 25 of the Indian Trusts Act, 1882?

It deals with the non-liability of a trustee for the acts or defaults of his predecessor.

Under Section 25 of the Indian Trusts Act, 1882, is a succeeding trustee liable for the acts or defaults of his predecessor?

No, he is not liable as such.

What is the subject matter of Section 26 of the Indian Trusts Act, 1882?

It deals with the non-liability of a trustee for breach of trust committed by his co-trustee.

Under Section 26 of the Indian Trusts Act, 1882, is a trustee liable for breach of trust committed by his co-trustee?

No, subject to the provisions of Sections 13 and 15.

Under the proviso to Section 26 clause (a) of the Indian Trusts Act, 1882, when is a trustee liable for the breach of trust of his co-trustee?

When he has delivered trust-property to his co-trustee without seeing to its proper application.

Under the proviso to Section 26 clause (b) of the Indian Trusts Act, 1882, when is a trustee liable for breach by his co-trustee?

When he allows his co-trustee to receive trust-property and fails to make due enquiry or allows him to retain it longer than reasonably required.

Under the proviso to Section 26 clause (c) of the Indian Trusts Act, 1882, when is a trustee liable for breach of trust by his co-trustee?

When he becomes aware of a breach of trust committed or intended by his co-trustee and conceals it or fails within a reasonable time to protect the beneficiary’s interest.

Under the provision “Joining in receipt for conformity” in Section 26, is a co-trustee liable merely for signing a receipt for trust-property?

No, if he proves that he has not actually received the property.

Under the Illustration to Section 26 of the Indian Trusts Act, 1882, when may a co-trustee be compelled to make good the loss caused by another co-trustee?

When he fails to exercise due attention and allows the other trustee to retain trust-money improperly.

What is the subject matter of Section 27 of the Indian Trusts Act, 1882?

It deals with the several liability of co-trustees for breach of trust.

Under Section 27 of the Indian Trusts Act, 1882, when are co-trustees liable for breach of trust?

When they jointly commit a breach of trust or when one by his neglect enables the other to commit a breach of trust.

Under Section 27 of the Indian Trusts Act, 1882, what is the extent of liability of co-trustees to the beneficiary?

Each is liable for the whole of the loss occasioned by the breach.

Under the provision relating to contribution in Section 27, when can a less guilty trustee recover from another trustee?

When he has refunded the loss and the other trustee was more guilty.

Under Section 27 of the Indian Trusts Act, 1882, when all trustees are equally guilty, what remedy is available?

Any trustee who has refunded the loss may compel the others to contribute.

Under Section 27 of the Indian Trusts Act, 1882, can a trustee guilty of fraud sue for contribution?

No, a trustee guilty of fraud cannot institute a suit for contribution.

What is the subject matter of Section 28 of the Indian Trusts Act, 1882?

It deals with the non-liability of a trustee paying without notice of transfer by beneficiary.

Under Section 28 of the Indian Trusts Act, 1882, when is a trustee not liable after paying trust-property?

When he pays it to the person entitled without notice that the beneficiary’s interest has vested in another person.

What is the subject matter of Section 29 of the Indian Trusts Act, 1882?

It deals with the liability of a trustee where the beneficiary’s interest is forfeited to the Government.

Under Section 29 of the Indian Trusts Act, 1882, what must the trustee do when the beneficiary’s interest is forfeited or awarded to the Government?

The trustee must hold the trust-property to the extent of such interest for such person and in such manner as the State Government directs.

What is the subject matter of Section 30 of the Indian Trusts Act, 1882?

It deals with indemnity of trustees.

Under Section 30 of the Indian Trusts Act, 1882, for what property are trustees respectively chargeable?

Only for such moneys, stocks, funds and securities as they actually receive.

Under Section 30 of the Indian Trusts Act, 1882, are trustees liable for the acts of other trustees?

No, they are not answerable one for another.

Under Section 30 of the Indian Trusts Act, 1882, are trustees liable for acts of bankers, brokers or other persons holding trust-property?

No, they are not liable for such persons.

Under Section 30 of the Indian Trusts Act, 1882, are trustees liable for insufficiency or deficiency of stocks, funds or securities?

No, they are not liable for such insufficiency or deficiency.

Under Section 30 of the Indian Trusts Act, 1882, are trustees liable for involuntary losses?

No, trustees are not liable for involuntary losses subject to the provisions of the instrument of trust and Sections 23 and 26.

CHAPTER-IV

OF THE RIGHTS AND POWERS OF TRUSTEES

What is the subject matter of Section 31 of the Indian Trusts Act, 1882?

It deals with the right of a trustee to title-deeds and trust documents.

Under Section 31 of the Indian Trusts Act, 1882, what documents is a trustee entitled to possess?

The instrument of trust and all documents of title relating solely to the trust-property.

What is the subject matter of Section 32 of the Indian Trusts Act, 1882?

It deals with the right of a trustee to reimbursement of expenses.

Under Section 32 of the Indian Trusts Act, 1882, what expenses may a trustee reimburse himself from the trust-property?

All expenses properly incurred in execution of the trust or in the realisation, preservation or benefit of the trust-property or protection or support of the beneficiary.

Under Section 32 of the Indian Trusts Act, 1882, what right does a trustee have if he pays expenses from his own pocket?

He has a first charge upon the trust-property for such expenses and interest thereon.

Under Section 32 of the Indian Trusts Act, 1882, how may the trustee enforce his charge for expenses if not sanctioned by a principal Civil Court of original jurisdiction?

By prohibiting disposition of the trust-property without prior payment of such expenses and interest.

Under Section 32 of the Indian Trusts Act, 1882, what remedy does a trustee have if the trust-property fails?

He may recover the expenses personally from the beneficiary on whose behalf and at whose request he made the payment.

Under the provision relating to erroneous over-payment in Section 32 of the Indian Trusts Act, 1882, what right does a trustee have if he mistakenly overpays a beneficiary?

He may reimburse the trust-property out of the beneficiary’s interest.

Under Section 32 of the Indian Trusts Act, 1882, what remedy does the trustee have if the beneficiary’s interest fails after over-payment?

He may recover the amount personally from the beneficiary.

What is the subject matter of Section 33 of the Indian Trusts Act, 1882?

It deals with the right of a trustee to indemnity from a person gaining advantage from breach of trust.

Under Section 33 of the Indian Trusts Act, 1882, who must indemnify the trustee for gain from breach of trust?

Any person other than the trustee who has gained advantage from the breach.

Under Section 33 of the Indian Trusts Act, 1882, to what extent must such person indemnify the trustee?

To the extent of the amount actually received under the breach.

Under Section 33 of the Indian Trusts Act, 1882, what right does the trustee have if the person gaining advantage is a beneficiary?

The trustee has a charge on the beneficiary’s interest for such amount.

Under Section 33 of the Indian Trusts Act, 1882, when is a trustee not entitled to indemnity?

When he has committed the breach of trust fraudulently.

What is the subject matter of Section 34 of the Indian Trusts Act, 1882?

It deals with the right of a trustee to apply to Court for opinion, advice or direction in management of trust-property.

Under Section 34 of the Indian Trusts Act, 1882, to which court may a trustee apply for opinion or advice?

A principal Civil Court of original jurisdiction.

Under Section 34 of the Indian Trusts Act, 1882, can a trustee apply to the Court without instituting a suit?

Yes, he may apply by petition.

Under Section 34 of the Indian Trusts Act, 1882, on what matters may the trustee seek opinion or advice?

On present questions respecting management or administration of trust-property other than questions of detail, difficulty or importance unsuitable for summary disposal.

Under Section 34 of the Indian Trusts Act, 1882, who may be served with a copy of the petition?

Such persons interested in the application as the Court thinks fit.

Under Section 34 of the Indian Trusts Act, 1882, what is the effect if a trustee acts in good faith upon the Court’s opinion, advice or direction?

He shall be deemed to have discharged his duty as trustee in that matter.

Under Section 34 of the Indian Trusts Act, 1882, who decides the costs of an application under this section?

The Court to which the application is made.

What is the subject matter of Section 35 of the Indian Trusts Act, 1882?

It deals with the right of a trustee to settlement of accounts.

Under Section 35 of the Indian Trusts Act, 1882, when can a trustee demand settlement of accounts?

When the duties of the trustee are completed.

Under Section 35 of the Indian Trusts Act, 1882, what is the trustee entitled to after settlement of accounts?

Examination and settlement of accounts of administration of trust-property.

Under Section 35 of the Indian Trusts Act, 1882, what acknowledgment may the trustee demand when nothing is due to the beneficiary?

An acknowledgment in writing that nothing is due under the trust.

What is the subject matter of Section 36 of the Indian Trusts Act, 1882?

It deals with the general authority of a trustee.

Under Section 36 of the Indian Trusts Act, 1882, what acts may a trustee perform in addition to powers conferred by the Act and the instrument of trust?

All acts which are reasonable and proper for the realisation, protection or benefit of the trust-property and for the protection or support of a beneficiary not competent to contract.

Under Section 36 of the Indian Trusts Act, 1882, subject to which provisions must the trustee exercise his general authority?

Subject to the restrictions in the instrument of trust and the provisions of Section 17.

Under Section 36 of the Indian Trusts Act, 1882, can a trustee lease trust-property for more than twenty-one years without court permission?

No, except with the permission of a principal Civil Court of original jurisdiction.

Under Section 36 of the Indian Trusts Act, 1882, what rent must be reserved when a trustee leases trust-property?

The best yearly rent that can be reasonably obtained.

What is the subject matter of Section 37 of the Indian Trusts Act, 1882?

It deals with the power of a trustee to sell trust-property in lots and by public auction or private contract.

Under Section 37 of the Indian Trusts Act, 1882, how may a trustee sell trust-property?

Subject to prior charges or not, either together or in lots, by public auction or private contract.

Under Section 37 of the Indian Trusts Act, 1882, can a trustee sell trust-property at one or several times?

Yes, unless the instrument of trust otherwise directs.

What is the subject matter of Section 38 of the Indian Trusts Act, 1882?

It deals with the power of a trustee to sell under special conditions and to buy-in and re-sell trust-property.

Under Section 38 of the Indian Trusts Act, 1882, what conditions may a trustee insert in a sale of trust-property?

Reasonable stipulations as to title, evidence of title or otherwise in the conditions of sale.

Under Section 38 of the Indian Trusts Act, 1882, what power does a trustee have if the sale fails?

He may buy in and re-sell the property without being responsible to the beneficiary for any resulting loss.

Under Section 38 of the Indian Trusts Act, 1882, what discretion does a trustee have regarding the time of sale or purchase of trust-property?

He may exercise a reasonable discretion as to the time of effecting the sale or purchase.

Under Illustration (a) to Section 38 of the Indian Trusts Act, 1882, does a direction to sell property with all convenient speed require immediate sale?

No, it does not render an immediate sale imperative.

Under Illustration (b) to Section 38 of the Indian Trusts Act, 1882, can a trustee postpone sale indefinitely when directed to sell at such time as he thinks fit?

No, he cannot postpone the sale to an indefinite period.

What is the subject matter of Section 39 of the Indian Trusts Act, 1882?

It deals with the power of a trustee to convey property sold.

Under Section 39 of the Indian Trusts Act, 1882, what power does a trustee have to complete a sale of trust-property?

He may convey or otherwise dispose of the property sold in such manner as may be necessary.

What is the subject matter of Section 40 of the Indian Trusts Act, 1882?

It deals with the power of a trustee to vary investments.

Under Section 40 of the Indian Trusts Act, 1882, what power does a trustee have regarding trust-property invested in securities?

He may call in the investment and invest it in securities mentioned or referred to in Section 20.

Under Section 40 of the Indian Trusts Act, 1882, can a trustee vary investments from time to time?

Yes, he may vary such investments for others of the same nature.

Under the proviso to Section 40 of the Indian Trusts Act, 1882, when is written consent required before changing investments?

When there is a person competent to contract entitled to receive the income of the trust-property for life or any greater estate.

Under the proviso to Section 40 of the Indian Trusts Act, 1882, whose consent is required for such change of investment?

The written consent of the person entitled to receive the income of the trust-property.

What is the subject matter of Section 41 of the Indian Trusts Act, 1882?

It deals with the power of a trustee to apply property of minors for their maintenance, education and other purposes.

Under Section 41 of the Indian Trusts Act, 1882, how may a trustee apply the income of trust-property held for a minor?

He may pay it to the minor’s guardian or otherwise apply it for the minor’s maintenance, education, advancement in life or reasonable expenses of religious worship, marriage or funeral.

Under Section 41 of the Indian Trusts Act, 1882, what must the trustee do with the residue of income after such application?

He must accumulate it by way of compound interest by investing it in securities mentioned or referred to in Section 20.

Under Section 41 of the Indian Trusts Act, 1882, for whose benefit are such accumulations made?

For the person who will ultimately become entitled to the property from which the accumulations arise.

Under the proviso to Section 41 of the Indian Trusts Act, 1882, what discretion does the trustee have regarding accumulated income?

He may apply the whole or any part of such accumulations as if it were part of the income of the current year.

Under Section 41 of the Indian Trusts Act, 1882, what may the trustee do if the income of the trust-property is insufficient for the minor’s maintenance or other expenses?

With permission of a principal Civil Court of original jurisdiction he may apply the whole or part of the trust-property itself.

Under Section 41 of the Indian Trusts Act, 1882, which purposes justify application of the trust-property itself?

Maintenance, education, advancement in life or reasonable expenses of religious worship, marriage or funeral of the minor.

Under Section 41 of the Indian Trusts Act, 1882, does this section affect any local law relating to minors?

No, it does not affect the provisions of any local law relating to the persons and property of minors.

What is the subject matter of Section 42 of the Indian Trusts Act, 1882?

It deals with the power of trustees to give receipts.

Under Section 42 of the Indian Trusts Act, 1882, what may trustees give a receipt for?

Any money, securities or other movable property payable, transferable or deliverable to them in exercise of any trust or power.

Under Section 42 of the Indian Trusts Act, 1882, what is the effect of such receipt in the absence of fraud?

It discharges the person paying, transferring or delivering the property and relieves him from seeing to its application.

What is the subject matter of Section 43 of the Indian Trusts Act, 1882?

It deals with the power of trustees to compound, compromise or settle claims relating to the trust.

Under Section 43 clause (a) of the Indian Trusts Act, 1882, what may two or more trustees accept?

Any composition or any security for any debt or property claimed.

Under Section 43 clause (b) of the Indian Trusts Act, 1882, what power do trustees have regarding payment of debts?

They may allow time for payment of any debt.

Under Section 43 clause (c) of the Indian Trusts Act, 1882, how may trustees deal with debts, accounts or claims relating to the trust?

They may compromise, compound, abandon, submit to arbitration or otherwise settle them.

Under Section 43 clause (d) of the Indian Trusts Act, 1882, what agreements or instruments may trustees execute for settlement purposes?

Agreements, instruments of composition or arrangement, releases and other necessary instruments.

Under Section 43 of the Indian Trusts Act, 1882, are trustees liable for loss caused by acts done in good faith under these powers?

No, they are not responsible for such loss if done in good faith.

Under Section 43 of the Indian Trusts Act, 1882, can these powers be exercised by a sole trustee?

Yes, when the instrument of trust authorizes a sole trustee to execute the trusts and powers.

Under Section 43 of the Indian Trusts Act, 1882, when does this section operate?

Only where a contrary intention is not expressed in the instrument of trust.

Under Section 43 of the Indian Trusts Act, 1882, to which trusts does this section apply?

Only to trusts created after the Act comes into force.

What is the subject matter of Section 44 of the Indian Trusts Act, 1882?

It deals with the power of remaining trustees when one trustee disclaims or dies.

Under Section 44 of the Indian Trusts Act, 1882, who may exercise authority when one of several trustees disclaims or dies?

The continuing trustees.

Under Section 44 of the Indian Trusts Act, 1882, when can the continuing trustees not exercise such authority?

When the instrument of trust shows that the authority must be exercised by a number greater than the remaining trustees.

What is the subject matter of Section 45 of the Indian Trusts Act, 1882?

It deals with the suspension of a trustee’s powers by decree of a Court.

Under Section 45 of the Indian Trusts Act, 1882, what restriction applies when a decree is passed in a suit for execution of a trust?

The trustee must not exercise any of his powers except in conformity with the decree.

Under Section 45 of the Indian Trusts Act, 1882, when may a trustee exercise powers despite such decree?

With the sanction of the Court that passed the decree or, if an appeal is pending, the Appellate Court.

CHAPTER-V

OF THE DISABILITIES OF TRUSTEES

What is the subject matter of Section 46 of the Indian Trusts Act, 1882?

It deals with the restriction on renunciation of trust after acceptance.

Under Section 46 of the Indian Trusts Act, 1882, can a trustee renounce the trust after accepting it?

No, except in the circumstances provided in the section.

Under Section 46 clause (a) of the Indian Trusts Act, 1882, when may a trustee renounce the trust after acceptance?

With the permission of a principal Civil Court of original jurisdiction.

Under Section 46 clause (b) of the Indian Trusts Act, 1882, when may a trustee renounce the trust after acceptance?

With the consent of the beneficiary if he is competent to contract.

Under Section 46 clause (c) of the Indian Trusts Act, 1882, when may a trustee renounce the trust after acceptance?

By virtue of a special power contained in the instrument of trust.

What is the subject matter of Section 47 of the Indian Trusts Act, 1882?

It deals with the prohibition on delegation of duties by a trustee.

Under Section 47 of the Indian Trusts Act, 1882, can a trustee delegate his office or duties?

No, except in the circumstances specified in the section.

Under Section 47 clause (a) of the Indian Trusts Act, 1882, when may a trustee delegate his duties?

When the instrument of trust so provides.

Under Section 47 clause (b) of the Indian Trusts Act, 1882, when may a trustee delegate his duties?

When the delegation is in the regular course of business.

Under Section 47 clause (c) of the Indian Trusts Act, 1882, when may a trustee delegate his duties?

When the delegation is necessary.

Under Section 47 clause (d) of the Indian Trusts Act, 1882, when may a trustee delegate his duties?

When the beneficiary, being competent to contract, consents to the delegation.

Under the Explanation to Section 47 of the Indian Trusts Act, 1882, what is not considered delegation?

Appointment of an attorney or proxy to perform a merely ministerial act involving no independent discretion.

Under Illustration (a) to Section 47 of the Indian Trusts Act, 1882, can the surviving trustee bequeath the trust-property upon the trusts of the will?

Yes, where the instrument authorises execution by the survivor or his assigns.

Under Illustration (b) to Section 47 of the Indian Trusts Act, 1882, can a trustee employ an auctioneer to sell trust-property?

Yes.

Under Illustration (c) to Section 47 of the Indian Trusts Act, 1882, can a trustee employ a person to collect rents of trust-property?

Yes.

What is the subject matter of Section 48 of the Indian Trusts Act, 1882?

It deals with the rule that co-trustees must act jointly.

Under Section 48 of the Indian Trusts Act, 1882, how must co-trustees execute the trust?

All trustees must join in the execution of the trust unless the instrument of trust otherwise provides.

What is the subject matter of Section 49 of the Indian Trusts Act, 1882?

It deals with the control of discretionary powers of a trustee by the Court.

Under Section 49 of the Indian Trusts Act, 1882, when may the Court control the discretionary power of a trustee?

When such power is not exercised reasonably and in good faith.

Under Section 49 of the Indian Trusts Act, 1882, which Court may control such discretionary power?

A principal Civil Court of original jurisdiction.

What is the subject matter of Section 50 of the Indian Trusts Act, 1882?

It deals with the prohibition on trustees charging remuneration for services.

Under Section 50 of the Indian Trusts Act, 1882, does a trustee have a right to remuneration for executing the trust?

No, unless expressly provided in the instrument of trust or by contract with the beneficiary or by the Court at the time of accepting the trust.

Under Section 50 of the Indian Trusts Act, 1882, to whom does this prohibition not apply?

Official Trustees, Administrators General, Public Curators, or persons holding a certificate of administration.

What is the subject matter of Section 51 of the Indian Trusts Act, 1882?

It deals with the prohibition on trustees using trust-property for personal profit.

Under Section 51 of the Indian Trusts Act, 1882, can a trustee use trust-property for his own profit or unrelated purposes?

No.

What is the subject matter of Section 52 of the Indian Trusts Act, 1882?

It deals with the prohibition on trustees or their agents buying trust-property they are required to sell.

Under Section 52 of the Indian Trusts Act, 1882, can a trustee whose duty is to sell trust-property buy the property himself?

No.

Under Section 52 of the Indian Trusts Act, 1882, can an agent employed by a trustee for sale buy the trust-property?

No, neither directly nor indirectly.

What is the subject matter of Section 53 of the Indian Trusts Act, 1882?

It deals with the prohibition on trustees purchasing the beneficiary’s interest without Court permission.

Under Section 53 of the Indian Trusts Act, 1882, can a trustee buy, mortgage or lease trust-property without Court permission?

No, except with permission of a principal Civil Court of original jurisdiction.

Under Section 53 of the Indian Trusts Act, 1882, when will the Court grant such permission?

Only when the transaction is manifestly for the advantage of the beneficiary.

Under the provision “Trustee for purchase” in Section 53 of the Indian Trusts Act, 1882, can a trustee who must buy property for the beneficiary purchase it for himself?

No.

What is the subject matter of Section 54 of the Indian Trusts Act, 1882?

It deals with prohibition on trustees lending trust-money to themselves or co-trustees.

Under Section 54 of the Indian Trusts Act, 1882, can a trustee invest trust-money on mortgage or personal security of himself or his co-trustee?

No.

CHAPTER-VI

OF THERIGHTS AND LIABILITIES OF THEBENEFICIARY

What is the subject matter of Section 55 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to rents and profits of the trust-property.

Under Section 55 of the Indian Trusts Act, 1882, what right does a beneficiary have in respect of the trust-property?

Subject to the instrument of trust, the beneficiary has a right to the rents and profits of the trust-property.

What is the subject matter of Section 56 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to specific execution of the trust and transfer of possession of trust-property.

Under Section 56 of the Indian Trusts Act, 1882, what right does a beneficiary have regarding execution of the trust?

The beneficiary is entitled to have the intention of the author of the trust specifically executed to the extent of his interest.

Under the second clause of Section 56 of the Indian Trusts Act, 1882, when may the beneficiary require transfer of trust-property?

When there is only one beneficiary competent to contract or several beneficiaries competent to contract and all of one mind.

Under the second clause of Section 56 of the Indian Trusts Act, 1882, to whom may the trustee transfer the trust-property on such demand?

To the beneficiary or to any person he or they direct.

Under the proviso to Section 56 of the Indian Trusts Act, 1882, when does the right to demand transfer of trust-property not apply?

When property is transferred or bequeathed for the benefit of a married woman so that she cannot deprive herself of her beneficial interest during marriage.

Under Illustration 1 to Section 56 of the Indian Trusts Act, 1882, can a beneficiary who has attained majority demand immediate transfer of accumulated securities?

Yes, if he is exclusively interested in the trust-property.

Under Illustration 2 to Section 56 of the Indian Trusts Act, 1882, can a beneficiary claim money bequeathed to trustees for purchase of an annuity?

Yes, if he has attained majority and is competent to contract.

Under Illustration 3 to Section 56 of the Indian Trusts Act, 1882, can a beneficiary elect to take the property in its original character instead of sale or investment?

Yes, if he is competent to contract.

What is the subject matter of Section 57 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to inspect and take copies of trust documents and accounts.

Under Section 57 of the Indian Trusts Act, 1882, what documents may a beneficiary inspect and take copies of?

The instrument of trust, title documents relating solely to trust-property, trust accounts, vouchers supporting them, and opinions taken by the trustee for guidance.

What is the subject matter of Section 58 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to transfer his beneficial interest.

Under Section 58 of the Indian Trusts Act, 1882, can a beneficiary transfer his beneficial interest?

Yes, if he is competent to contract.

Under Section 58 of the Indian Trusts Act, 1882, to what limitation is the transfer of beneficial interest subject?

The law in force regarding the circumstances and extent in which such interest may be disposed of.

Under the proviso to Section 58 of the Indian Trusts Act, 1882, when cannot a married woman transfer her beneficial interest?

When property is transferred or bequeathed for her benefit so that she cannot deprive herself of the interest during her marriage.

What is the subject matter of Section 59 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to sue for execution of the trust.

Under Section 59 of the Indian Trusts Act, 1882, when may a beneficiary institute a suit for execution of a trust?

When no trustees are appointed, or all trustees die, disclaim, are discharged, or execution of the trust becomes impracticable.

Under Section 59 of the Indian Trusts Act, 1882, who executes the trust when such suit is instituted?

The Court executes the trust until a trustee or new trustee is appointed.

What is the subject matter of Section 60 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to proper trustees.

Under Section 60 of the Indian Trusts Act, 1882, what right does a beneficiary have regarding trustees?

The beneficiary has a right that the trust-property be properly protected and administered by proper persons and by a proper number of trustees.

Under Explanation I to Section 60 of the Indian Trusts Act, 1882, who are not proper persons to be trustees?

A person domiciled abroad, an alien enemy, a person having an interest inconsistent with that of the beneficiary, a person in insolvent circumstances, and unless personal law allows otherwise, a married woman or a minor.

Under Explanation II to Section 60 of the Indian Trusts Act, 1882, what is the proper number of trustees when administration involves receipt and custody of money?

At least two trustees.

Under Illustration (a) to Section 60 of the Indian Trusts Act, 1882, what remedy is available if a trustee improperly disposes of trust-property or becomes insolvent?

The beneficiary may obtain appointment of a receiver of the trust-property.

Under Illustration (b) to Section 60 of the Indian Trusts Act, 1882, what happens if a trustee dies before the testator and the testator later dies?

The beneficiary is entitled to have the property conveyed to a trustee for him.

Under Illustration (c) to Section 60 of the Indian Trusts Act, 1882, what remedy is available when several trustees die leaving insufficient trustees?

The beneficiary may institute a suit to appoint new trustees.

Under Illustration (d) to Section 60 of the Indian Trusts Act, 1882, what remedy exists if all trustees disclaim the trust?

The beneficiary may institute a suit to have new trustees appointed.

Under Illustration (e) to Section 60 of the Indian Trusts Act, 1882, when may a beneficiary seek removal of a trustee and appointment of a new one?

When the trustee refuses to act, resides permanently abroad, becomes insolvent, compounds with creditors, or allows breach of trust by a co-trustee.

What is the subject matter of Section 61 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to compel performance of trustee’s duties and restrain breach of trust.

Under Section 61 of the Indian Trusts Act, 1882, what right does a beneficiary have against the trustee?

The beneficiary may compel the trustee to perform his duty and restrain him from committing any contemplated or probable breach of trust.

Under Illustration (a) to Section 61 of the Indian Trusts Act, 1882, what remedy is available when money payable in trust is not paid according to contract?

The beneficiary may compel the trustee, on proper indemnity, to allow the beneficiary to sue on the contract in the trustee’s name.

Under Illustration (b) to Section 61 of the Indian Trusts Act, 1882, what remedy is available when a trustee is about to make an improvident sale of trust-property?

The beneficiary may sue for an injunction to restrain the sale.

What is the subject matter of Section 62 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s rights when a trustee wrongfully purchases trust-property.

Under Section 62 of the Indian Trusts Act, 1882, what right does the beneficiary have when a trustee wrongfully buys trust-property?

The beneficiary may have the property declared subject to the trust or retransferred if it remains unsold in the trustee’s hands.

Under Section 62 of the Indian Trusts Act, 1882, can the beneficiary recover the property from a purchaser with notice of the trust?

Yes, the beneficiary may have the property retransferred by such purchaser.

Under Section 62 of the Indian Trusts Act, 1882, what must the beneficiary repay when seeking retransfer of property?

The purchase-money paid by the trustee with interest and proper preservation expenses.

Under Section 62 clause (a) of the Indian Trusts Act, 1882, what must the trustee or purchaser account for?

The net profits of the property.

Under Section 62 clause (b) of the Indian Trusts Act, 1882, what liability arises if the trustee or purchaser has been in possession of the property?

He must be charged with an occupation-rent.

Under Section 62 clause (c) of the Indian Trusts Act, 1882, what deduction may the beneficiary make if the property has deteriorated?

A proportionate part of the purchase-money.

Under Section 62 clause (a) of the saving provision, whose rights are protected?

Lessees and others who contracted in good faith before the institution of the suit.

Under Section 62 clause (b) of the saving provision, when can the beneficiary not seek retransfer of property?

When he, being competent to contract, has ratified the sale with full knowledge and without coercion or undue influence.

What is the subject matter of Section 63 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right to follow trust-property.

Under Section 63 first clause of the Indian Trusts Act, 1882, what right does the beneficiary have when trust-property comes into the hands of a third person inconsistently with the trust?

He may require the person to admit or seek a declaration that the property is subject to the trust.

Under Section 63 second clause of the Indian Trusts Act, 1882, what right arises when the trustee converts trust-property into other property?

The beneficiary has the same rights over the substituted property as over the original trust-property.

Under Illustration (a) to Section 63 of the Indian Trusts Act, 1882, what happens when trust-money is used to purchase land?

The beneficiary is entitled to the land.

Under Illustration (b) to Section 63 of the Indian Trusts Act, 1882, what happens when a trustee mixes his own money with trust-money to buy land?

The beneficiary is entitled to a charge on the land for the trust-money misapplied.

What is the subject matter of Section 64 of the Indian Trusts Act, 1882?

It deals with saving the rights of certain transferees of trust-property.

Under Section 64 clause (a) of the Indian Trusts Act, 1882, when can a beneficiary not claim rights in trust-property?

When it is held by a transferee in good faith for consideration without notice of the trust.

Under Section 64 clause (b) of the Indian Trusts Act, 1882, when are the rights of a transferee protected?

When he purchased the property for consideration from such a bona fide transferee.

Under Section 64 of the Indian Trusts Act, 1882, is a judgment-creditor attaching trust-property a transferee for consideration?

No.

Under Section 64 of the Indian Trusts Act, 1882, to what property does Section 63 not apply?

Money, currency notes and negotiable instruments in the hands of a bona fide holder in circulation.

Under Section 64 of the Indian Trusts Act, 1882, which provisions remain unaffected?

Section 108 of the Indian Contract Act, 1872 and liabilities relating to transferred debts or charges.

What is the subject matter of Section 65 of the Indian Trusts Act, 1882?

It deals with reacquisition of trust-property wrongfully transferred by the trustee.

Under Section 65 of the Indian Trusts Act, 1882, what happens when a trustee wrongfully transfers trust-property and later becomes its owner again?

The property again becomes subject to the trust.

Under Section 65 of the Indian Trusts Act, 1882, does the property remain subject to the trust even if intervening transferees were bona fide purchasers without notice?

Yes.

What is the subject matter of Section 66 of the Indian Trusts Act, 1882?

It deals with the beneficiary’s right when trust-property is blended with the trustee’s property.

Under Section 66 of the Indian Trusts Act, 1882, what right does the beneficiary have when trust-property is mingled with the trustee’s property?

The beneficiary has a charge on the whole fund for the amount due to him.

What is the subject matter of Section 67 of the Indian Trusts Act, 1882?

It deals with wrongful employment of trust-property by a partner-trustee in partnership business.

Under Section 67 of the Indian Trusts Act, 1882, are other partners personally liable for misuse of trust-property by a partner-trustee?

No, unless they had notice of the breach of trust.

Under Section 67 of the Indian Trusts Act, 1882, what is the liability of partners who had notice of the breach of trust?

They are jointly and severally liable.

Under Illustration (a) to Section 67 of the Indian Trusts Act, 1882, what remedy does the beneficiary have when trust assets are retained in partnership business?

The beneficiary may compel the trustee to account for profits derived from the trust capital.

Under Illustration (b) to Section 67 of the Indian Trusts Act, 1882, when are other partners liable for breach of trust by the trustee?

When they knowingly become parties to the breach.

What is the subject matter of Section 68 of the Indian Trusts Act, 1882?

It deals with the liability of a beneficiary who joins in breach of trust.

Under Section 68 clause (a) of the Indian Trusts Act, 1882, when is a beneficiary liable?

When he joins in committing a breach of trust.

Under Section 68 clause (b) of the Indian Trusts Act, 1882, when is a beneficiary liable?

When he knowingly obtains advantage from the breach without consent of other beneficiaries.

Under Section 68 clause (c) of the Indian Trusts Act, 1882, when is a beneficiary liable?

When he conceals or fails to prevent a known breach of trust.

Under Section 68 clause (d) of the Indian Trusts Act, 1882, when is a beneficiary liable?

When he deceives the trustee and induces him to commit a breach of trust.

Under Section 68 of the Indian Trusts Act, 1882, what remedy is available to other beneficiaries against such beneficiary?

His beneficial interest may be impounded until the loss caused by the breach is compensated.

Under the proviso to Section 68 of the Indian Trusts Act, 1882, when does this section not apply?

To property transferred or bequeathed for the benefit of a married woman who cannot deprive herself of the interest during marriage.

What is the subject matter of Section 69 of the Indian Trusts Act, 1882?

It deals with the rights and liabilities of the transferee of a beneficiary’s interest.

Under Section 69 of the Indian Trusts Act, 1882, what rights does a transferee of a beneficiary’s interest acquire?

The rights of the beneficiary in respect of such interest at the date of the transfer.

Under Section 69 of the Indian Trusts Act, 1882, what liabilities does the transferee of a beneficiary’s interest incur?

The liabilities of the beneficiary in respect of such interest at the date of the transfer.

CHAPTER-VII

OF VACATING THE OFFICE OFTRUSTEES

What is the subject matter of Section 70 of the Indian Trusts Act, 1882?

It deals with the manner in which the office of a trustee is vacated.

Under Section 70 of the Indian Trusts Act, 1882, how is the office of a trustee vacated?

By the death of the trustee or by his discharge from office.

What is the subject matter of Section 71 of the Indian Trusts Act, 1882?

It deals with the discharge of a trustee from office.

Under Section 71 clause (a) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By the extinction of the trust.

Under Section 71 clause (b) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By the completion of his duties under the trust.

Under Section 71 clause (c) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By such means as prescribed by the instrument of trust.

Under Section 71 clause (d) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By appointment of a new trustee in his place under this Act.

Under Section 71 clause (e) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By consent of himself and the beneficiary, or all beneficiaries if more than one and competent to contract.

Under Section 71 clause (f) of the Indian Trusts Act, 1882, when may a trustee be discharged?

By the Court on a petition presented under the Act.

What is the subject matter of Section 72 of the Indian Trusts Act, 1882?

It deals with the petition by a trustee to be discharged from trust.

Under Section 72 of the Indian Trusts Act, 1882, to which Court may a trustee apply for discharge?

To a principal Civil Court of original jurisdiction.

Under Section 72 of the Indian Trusts Act, 1882, what must the Court find before discharging a trustee?

That there is sufficient reason for such discharge.

Under Section 72 of the Indian Trusts Act, 1882, how may the Court deal with the costs of discharge proceedings?

It may direct the costs to be paid out of the trust-property.

Under Section 72 of the Indian Trusts Act, 1882, when will the Court refuse discharge of the trustee?

When no sufficient reason exists unless a proper person can be found to take his place.

What is the subject matter of Section 73 of the Indian Trusts Act, 1882?

It deals with the appointment of new trustees on death, disclaimer or other disqualification.

Under Section 73 of the Indian Trusts Act, 1882, when may a new trustee be appointed?

When a trustee disclaims, dies, is absent from India for six months, leaves India to reside abroad, becomes insolvent, seeks discharge, refuses or becomes unfit or incapable, or accepts an inconsistent trust.

Under Section 73 clause (a) of the Indian Trusts Act, 1882, who may appoint a new trustee?

The person nominated for that purpose by the instrument of trust.

Under Section 73 clause (b) of the Indian Trusts Act, 1882, who may appoint a new trustee if no such person is nominated or able to act?

The author of the trust if alive and competent, the surviving or continuing trustees, the legal representative of the last surviving trustee, or retiring trustees with Court consent.

Under Section 73 of the Indian Trusts Act, 1882, how must the appointment of a new trustee be made?

By writing under the hand of the person making the appointment.

Under Section 73 of the Indian Trusts Act, 1882, can the number of trustees be increased when appointing a new trustee?

Yes.

Under Section 73 of the Indian Trusts Act, 1882, when may the Official Trustee be appointed?

When only one trustee is to be appointed and with his consent and order of the Court.

Under Section 73 of the Indian Trusts Act, 1882, does the death of a person nominated as trustee in a will before the testator count as a vacancy?

Yes, it is included in the provision relating to a dead trustee.

Under Section 73 of the Indian Trusts Act, 1882, does the term “continuing trustee” include a refusing or retiring trustee willing to act in execution of the power?

Yes.

What is the subject matter of Section 74 of the Indian Trusts Act, 1882?

It deals with the appointment of trustees by the Court.

Under Section 74 of the Indian Trusts Act, 1882, when may the beneficiary apply to the Court for appointment of a trustee?

When it is impracticable to appoint a trustee under Section 73.

Under Section 74 of the Indian Trusts Act, 1882, which Court may appoint a trustee?

A principal Civil Court of original jurisdiction.

Under Section 74 of the Indian Trusts Act, 1882, what factors must the Court consider while appointing new trustees?

The wishes of the author of the trust, the wishes of any person empowered to appoint trustees, the effect on execution of the trust, and the interests of all beneficiaries.

What is the subject matter of Section 75 of the Indian Trusts Act, 1882?

It deals with vesting of trust-property in newly appointed trustees.

Under Section 75 of the Indian Trusts Act, 1882, what happens to trust-property when a new trustee is appointed?

It becomes vested in the new trustee either solely or jointly with the continuing trustees.

Under Section 75 of the Indian Trusts Act, 1882, what powers does a newly appointed trustee possess?

The same powers, authorities and discretions as if originally nominated by the author of the trust.

What is the subject matter of Section 76 of the Indian Trusts Act, 1882?

It deals with the survival of trust upon death or discharge of a co-trustee.

Under Section 76 of the Indian Trusts Act, 1882, what happens when one of several co-trustees dies or is discharged?

The trust survives and the trust-property passes to the remaining trustees unless the instrument of trust provides otherwise.

CHAPTER-VIII

OF THE EXTINCTION OF TRUSTS

What is the subject matter of Section 77 of the Indian Trusts Act, 1882?

It deals with the extinguishment of a trust.

Under Section 77 clause (a) of the Indian Trusts Act, 1882, when is a trust extinguished?

When its purpose is completely fulfilled.

Under Section 77 clause (b) of the Indian Trusts Act, 1882, when is a trust extinguished?

When its purpose becomes unlawful.

Under Section 77 clause (c) of the Indian Trusts Act, 1882, when is a trust extinguished?

When fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise.

Under Section 77 clause (d) of the Indian Trusts Act, 1882, when is a trust extinguished?

When the trust, being revocable, is expressly revoked.

What is the subject matter of Section 78 of the Indian Trusts Act, 1882?

It deals with the revocation of trusts.

Under Section 78 of the Indian Trusts Act, 1882, when may a trust created by will be revoked?

At the pleasure of the testator.

Under Section 78 of the Indian Trusts Act, 1882, when may a trust otherwise created be revoked?

Only in the cases specified in clauses (a), (b) and (c).

Under Section 78 clause (a) of the Indian Trusts Act, 1882, when may a trust be revoked by beneficiaries?

When all the beneficiaries are competent to contract and consent to revocation.

Under Section 78 clause (b) of the Indian Trusts Act, 1882, when may the author revoke a trust declared by non-testamentary instrument or by word of mouth?

In exercise of a power of revocation expressly reserved to the author of the trust.

Under Section 78 clause (c) of the Indian Trusts Act, 1882, when may a trust for payment of the author’s debts be revoked?

When it has not been communicated to the creditors.

Under the Illustration to Section 78 of the Indian Trusts Act, 1882, can the author revoke a trust for payment of creditors if the creditors have not been informed?

Yes.

Under the Illustration to Section 78 of the Indian Trusts Act, 1882, can such trust be revoked when creditors are parties to the arrangement?

No, not without their consent.

What is the subject matter of Section 79 of the Indian Trusts Act, 1882?

It deals with the limitation on revocation of a trust.

Under Section 79 of the Indian Trusts Act, 1882, can revocation of a trust defeat acts duly done by the trustee in execution of the trust?

No, revocation cannot defeat or prejudice acts duly done by the trustees in execution of the trust.

CHAPTER-IX

OF CERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS

What is the subject matter of Section 80 of the Indian Trusts Act, 1882?

It states that obligations in the nature of trusts arise in certain specified cases.

What is the status of Section 81 of the Indian Trusts Act, 1882?

It has been repealed by the Benami Transactions (Prohibition) Act, 1988 with effect from 19-5-1988.

What is the status of Section 82 of the Indian Trusts Act, 1882?

It has been repealed by the Benami Transactions (Prohibition) Act, 1988 with effect from 19-5-1988.

What is the subject matter of Section 83 of the Indian Trusts Act, 1882?

It deals with trusts incapable of execution or executed without exhausting trust-property.

Under Section 83 of the Indian Trusts Act, 1882, what must the trustee do when a trust is incapable of being executed?

He must hold the trust-property for the benefit of the author of the trust or his legal representative unless a contrary direction exists.

Under Section 83 of the Indian Trusts Act, 1882, what must the trustee do when the trust is completely executed without exhausting the trust-property?

He must hold the unexhausted trust-property for the benefit of the author of the trust or his legal representative.

Under Illustration (a) to Section 83 of the Indian Trusts Act, 1882, what happens where land is conveyed upon trust but no valid trust is declared or it fails?

The trustee holds the land for the benefit of the transferor.

Under Illustration (b) to Section 83 of the Indian Trusts Act, 1882, what happens where trust money is given for life interest and both author and beneficiary die?

The trustee holds the fund for the benefit of the author’s legal representative.

Under Illustration (c) to Section 83 of the Indian Trusts Act, 1882, what happens when part of the trust purpose fails and part remains unexhausted?

The trustee holds the failed portion and unexhausted part for the benefit of the author or his legal representative.

Under Illustration (d) to Section 83 of the Indian Trusts Act, 1882, what happens where money is bequeathed to purchase land for purposes that fail?

The trustee holds the undisposed interest in the money or land for the author’s legal representative.

What is the subject matter of Section 84 of the Indian Trusts Act, 1882?

It deals with transfer of property for an illegal purpose.

Under Section 84 of the Indian Trusts Act, 1882, what must the transferee do when property is transferred for an illegal purpose not carried into execution?

The transferee must hold the property for the benefit of the transferor.

Under Section 84 of the Indian Trusts Act, 1882, what happens when the transferor is less guilty than the transferee?

The transferee must hold the property for the benefit of the transferor.

Under Section 84 of the Indian Trusts Act, 1882, what happens where allowing the transferee to retain property would defeat provisions of law?

The transferee must hold the property for the benefit of the transferor.

What is the subject matter of Section 85 of the Indian Trusts Act, 1882?

It deals with bequests for unlawful purposes and revocation prevented by coercion.

Under Section 85 of the Indian Trusts Act, 1882, what must the legatee do when property is bequeathed for an unlawful purpose?

The legatee must hold the property for the benefit of the testator’s legal representative.

Under the second paragraph of Section 85 of the Indian Trusts Act, 1882, what happens when revocation of a bequest is prevented by coercion?

The legatee must hold the property for the benefit of the testator’s legal representative.

What is the subject matter of Section 86 of the Indian Trusts Act, 1882?

It deals with transfers pursuant to rescindable contracts.

Under Section 86 of the Indian Trusts Act, 1882, what must the transferee do when property is transferred under a contract liable to rescission or induced by fraud or mistake?

On receiving notice he must hold the property for the benefit of the transferor.

Under Section 86 of the Indian Trusts Act, 1882, what condition applies when property is returned to the transferor?

The transferor must repay the consideration actually paid.

What is the subject matter of Section 87 of the Indian Trusts Act, 1882?

It deals with a debtor becoming the legal representative of his creditor.

Under Section 87 of the Indian Trusts Act, 1882, what must a debtor do if he becomes executor or legal representative of his creditor?

He must hold the debt for the benefit of persons interested therein.

What is the subject matter of Section 88 of the Indian Trusts Act, 1882?

It deals with advantage gained by a person in fiduciary position.

Under Section 88 of the Indian Trusts Act, 1882, who is considered to hold fiduciary position?

A trustee, executor, partner, agent, director of a company, legal adviser or other person bound in fiduciary character.

Under Section 88 of the Indian Trusts Act, 1882, what must a fiduciary do if he gains pecuniary advantage by availing himself of his position?

He must hold the advantage for the benefit of the person whose interests he was bound to protect.

Under Illustration (a) to Section 88 of the Indian Trusts Act, 1882, what must an executor do if he buys a legatee’s claim at undervalue?

He must hold the difference between price and value for the benefit of the legatee.

Under Illustration (b) to Section 88 of the Indian Trusts Act, 1882, what happens if a trustee uses trust-property in his own business?

He must hold the profits for the benefit of the beneficiary.

Under Illustration (c) to Section 88 of the Indian Trusts Act, 1882, what happens when a trustee receives money for retiring from the trust?

He must hold the money for the benefit of the beneficiary.

Under Illustration (d) to Section 88 of the Indian Trusts Act, 1882, what happens when a partner buys land with partnership funds in his own name?

He holds the land for the benefit of the partnership.

Under Illustration (e) to Section 88 of the Indian Trusts Act, 1882, what happens when a partner secretly receives money while negotiating a lease?

He must hold the money for the benefit of the partnership.

Under Illustration (f) to Section 88 of the Indian Trusts Act, 1882, what must a surviving partner do if he retains partnership assets in business?

He must account to the legal representative for profits from the deceased partner’s capital.

Under Illustration (g) to Section 88 of the Indian Trusts Act, 1882, what happens when an agent obtains a lease meant for his principal?

He holds the lease for the benefit of the principal.

Under Illustration (h) to Section 88 of the Indian Trusts Act, 1882, what happens when a guardian buys encumbrances on his ward’s estate at undervalue?

He holds them for the benefit of the ward and may charge only what he paid.

What is the subject matter of Section 89 of the Indian Trusts Act, 1882?

It deals with advantage gained by exercise of undue influence.

Under Section 89 of the Indian Trusts Act, 1882, what must a person do if he gains advantage through undue influence?

He must hold the advantage for the benefit of the person whose interests have been prejudiced.

What is the subject matter of Section 90 of the Indian Trusts Act, 1882?

It deals with advantage gained by a qualified owner of property.

Under Section 90 of the Indian Trusts Act, 1882, who is considered a qualified owner?

A tenant for life, co-owner, mortgagee or other qualified owner.

Under Section 90 of the Indian Trusts Act, 1882, what must such owner do if he gains advantage by using his position?

He must hold the advantage for the benefit of all persons interested in the property.

Under Section 90 of the Indian Trusts Act, 1882, what condition applies when other persons claim benefit of the advantage gained?

They must repay their due share of expenses properly incurred and indemnify against liabilities properly contracted.

Under Illustration (a) to Section 90 of the Indian Trusts Act, 1882, what happens when a tenant for life renews a lease in his own name?

He holds the renewed lease for the benefit of all persons interested in the old lease.

Under Illustration (b) to Section 90 of the Indian Trusts Act, 1882, what happens when a member of a Hindu family gets his name entered as inamdar by paying nazrana?

He holds the village for the benefit of himself and other family members.

Under Illustration (c) to Section 90 of the Indian Trusts Act, 1882, what happens when a mortgagee purchases mortgaged land by allowing revenue arrears intentionally?

He holds the land for the benefit of the mortgagor subject to repayment of the mortgage amount and proper expenses.

What is the subject matter of Section 91 of the Indian Trusts Act, 1882?

It deals with property acquired with notice of an existing contract.

Under Section 91 of the Indian Trusts Act, 1882, what happens when a person acquires property with notice of an existing contract affecting that property?

He must hold the property for the benefit of the person entitled under the contract to the extent necessary to give effect to the contract.

Under Section 91 of the Indian Trusts Act, 1882, what type of contract must exist to impose such obligation?

A contract affecting the property of which specific performance could be enforced.

What is the subject matter of Section 92 of the Indian Trusts Act, 1882?

It deals with purchase of property by a person contracting to buy it to be held on trust.

Under Section 92 of the Indian Trusts Act, 1882, what obligation arises when a person buys property under a contract to hold it on trust for beneficiaries?

He must hold the property for their benefit to the extent necessary to give effect to the contract.

What is the subject matter of Section 93 of the Indian Trusts Act, 1882?

It deals with advantage secretly gained by one of several compounding creditors.

Under Section 93 of the Indian Trusts Act, 1882, what happens when one creditor secretly gains an undue advantage in a composition with the debtor?

He must hold the advantage for the benefit of the other creditors.

What is the status of Section 94 of the Indian Trusts Act, 1882?

It has been repealed by the Benami Transactions (Prohibition) Act, 1988 with effect from 19-5-1988.

What is the subject matter of Section 95 of the Indian Trusts Act, 1882?

It deals with the duties, liabilities and disabilities of a person holding property under obligations in the nature of trust.

Under Section 95 of the Indian Trusts Act, 1882, what duties apply to a person holding property under obligations in the nature of trust?

He must perform the same duties and is subject to the same liabilities and disabilities as a trustee.

Under the proviso clause (a) to Section 95 of the Indian Trusts Act, 1882, when is such person entitled to remuneration?

When he rightfully cultivates the property or employs it in trade or business.

Under the proviso clause (b) to Section 95 of the Indian Trusts Act, 1882, when may such person buy, lease or mortgage the property without Court permission?

When he holds the property by virtue of a contract with the person for whose benefit he holds it or with someone through whom that person claims.

What is the subject matter of Section 96 of the Indian Trusts Act, 1882?

It deals with saving of rights of bona fide purchasers.

Under Section 96 of the Indian Trusts Act, 1882, whose rights are protected from obligations created in this Chapter?

Transferees in good faith for consideration.

Under Section 96 of the Indian Trusts Act, 1882, can obligations in this Chapter be used to evade existing law?

No, they cannot be used to evade any law for the time being in force.