SectionsParticulars
Chapter IPreliminary
1Short title and commencement
This Act may be called the Indian Trusts Act, 1882; and it shall come into force on the first day of March, 1882. Local extent, Saving: It extends to the whole...
2Repeal of enactments
The statutes and Acts mentioned in the Schedule hereto annexed shall, to the extent mentioned in the said Schedule, be repealed, in the territories to which t...
3Interpretation clause- "trust"
A "trust" is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepte...
Chapter IIThe Creation Of Trusts
4Lawful purpose
A trust may be created for any lawful purpose. The purpose of a trust is lawful unless it is (a) forbidden by law, or (b) is of such a nature that, if permitt...
5Trust of immovable property
No trust in relation to immovable property is valid unless declared by a non-testamentary instrument in writing signed by the author of the trust or the trust...
6Creation of trust
Subject to the provisions of section 5, a trust is created when the author of the trust indicates with reasonable certainty by any words or acts (a) an intent...
7Who may create trusts
A trust may be created- (a) by every person competent to contract, and (b) with the permission of a principal civil court of original jurisdiction, by or on be...
8Subject matter of trust
The subject-matter of a trust must be property transferable to the beneficiary. It must not be merely beneficial interest under a subsisting trust. ...
9Who may be beneficiary
Every person capable of holding property may be a beneficiary. Disclaimer by beneficiary : A proposed beneficiary may renounce his interest under the trust by ...
10Who may be trustee
Every person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is compete...
Chapter IIIThe Duties And Liabilities Of Trustees
11Trustee to execute trust
The trustee is bound to fulfill the purpose of the trust, and to obey the directions of the author of the trust given at the time of its creation, except as m...
12Trustee to inform himself of state of trust-property
A trustee is bound to acquaint himself, as soon as possible, with the nature and circumstances of the trust-property; to obtain, where necessary, a transfer o...
13Trustee to protect title to trust-property
A trustee is bound to maintain and defend all such suits, and (subject to the provisions of the instrument of trust) to take such other steps as, regard being...
14Trustee not to set up title adverse to beneficiary
The trustee must not for himself or another set up or aid any title to the trust-property adverse to the interest of the beneficiary. ...
15Care required from trustee
A trustee is bound to deal with the trust-property as carefully as a man of ordinary prudence would deal with such property if it were his own; and, in the ab...
16Conversion of perishable property
Where 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 interes...
17Trustee to be impartial
Where there are more beneficiaries than one, the trustee is bound to be impartial, and must not execute the trust for the advantage of one at the expense of a...
18Trustee to prevent waste
Where the trust is created for the benefit of several persons in succession and one of them is in possession of the trust-property, if he commits, or threaten...
19Accounts and information
A trustee is bound (a) to keep clear and accurate accounts of the trust-property, and (b) at all reasonable times, at the request of the beneficiary, to furni...
20Investment of trust-money
Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee is bound (subject t...
20APower to purchase redeemable stock at a premium
(1) A trustee may invest in any of the securities mentioned or referred to in section 20, notwithstanding that the same may be redeemable and that the price e...
21Mortgage of land Pledged to government under Act 26 of 1871-Deposit in government savings bank
Nothing in section 20 shall apply to investments made before this Act comes into force, or shall be deemed to Preclude an investment on a mortgage of immovabl...
22Sale by trustee directed to sell within specified time
Where a trustee directed to sell within a specified time extends such time, the burden of proving, as between himself and the beneficiary, that the latter is ...
23Liability for breach of trust
Where the trustee commits a breach of trust, he is liable to make good the loss which the trust-property or the beneficiary has thereby sustained, unless the ...
24No set-off allowed to trustee
A trustee who is liable for a loss occasioned by a breach of trust in respect of one portion of the trust-Property cannot set-off against his liability a gain...
25Non-liability for predecessor's default
Where a trustee succeeds another, he is not, as such, liable for the acts or defaults of his predecessor. ...
26Non-liability for co-trustee's default
Subject to the provisions of sections 13 and 15, one trustee is not, as such, liable for a breach of trust committed by his co-trustee: that, in, the absence o...
27Several liability of co-trustees
Where co-trustees jointly commit a breach of trust, or where one of them by his neglect enables the other to commit a breach of trust, each is liable to the b...
28Non-liability of trustee paying without notice of transfer by beneficiary
When any beneficiary's interest becomes vested in another person, and the trustee, not having notice of the vesting, pays or delivers trust-property to the pe...
29Liability of trustee where beneficiary's interest is forfeited to the government
When the beneficiary's interest is forfeited or awarded by legal adjudication to the government, the trustee is bound to hold the trust-property to the extent...
30Indemnity of trustees
Subject to the provisions of the instrument of trust and of sections 23 and 26, trustees shall be respectively chargeable only for such moneys, stocks, funds ...
Chapter IVThe Rights And Powers Of Trustees
31Right to title deed
A trustee is entitled to have in his possession the instrument of trust and all the documents of title (if any) relating solely to the trust-property. ...
32Right to reimbursement of expenses
Every trustee may reimburse himself, or pay or discharge out of the trust-property, all expenses properly incurred in or about the execution of the trust, or ...
33Right to indemnity from gainer by breach of trust
A person other than a trustee who has gained an advantage from a breach of trust must indemnify the trustee to the extent of the amount actually received by s...
34Right to apply to court for opinion in management of trust-property
Any trustee may, without instituting a suit, apply by petition to a principal civil court of original jurisdiction for its opinion, advice or direction on any...
35Right to settlement of accounts
When the duties of a trustee, as such, are completed, he is entitled to have the accounts of his administration of the trust-property examined and settled; an...
36General authority of trustee
In addition to the powers expressly conferred by this Act and by the instrument of trust, and subject to the restriction, if any, contained in such instrument...
37Power to sell in lots and either by public auction or private contract
Where the trustee is empowered to sell any trust-property, he may sell the same subject to prior charges or not, and either together or in lots, by public auc...
38Power to sell under special conditions-Power to buy-in and re-sell
The trustee making any such sale may insert such reasonable stipulations either as to title or evidence of title, or otherwise, in any conditions of sale or c...
39Power to convey
For the purpose of completing any such sale, the trustee shall have power to convey or otherwise dispose of the property sold in such manner as may be necessa...
40Power to vary investments
A trustee may, at his discretion, call in any trust-property invested in any security and invest the same on any of the securities mentioned or referred to in...
41Power to apply property of minors, etc. for their maintenance, etc.
Where any property is held by a trustee in trust for a minor, such trustee may, at his discretion, pay to the guardians (if any) of such minor, or otherwise a...
42Power to give receipts
Any trustees or trustee may give a receipt in writing for any money, securities or other movable property payable, transferable or deliverable to them or him ...
43Power to compound, etc.
Two or more trustees acting together may; if and as they think fit,- (a) accept any composition or any security for any debt or for any property claimed; (b) ...
44Power to several trustees of whom one disclaims or dies
When an authority to deal with the trust-property is given to several trustees and one of them disclaims or dies, the authority may be exercised by the contin...
45Suspension of trustee's powers by decree
Where a decree has been made in a suit for the execution of a trust, the trustee must not exercise any of his powers except in conformity with such decree, or...
Chapter VThe Disabilities Of Trustees
46Trustee cannot renounce after acceptance
A trustee who has accepted the trust cannot afterwards renounce it except (a) with the permission of a principal civil court of original jurisdiction, or (b) ...
47Trustee cannot delegate
A trustee cannot delegate his office or any of his duties either to a co-trustee or to a stranger, unless (a) the instrument of trust so provides, or (b) the ...
48Co-trustees cannot act singly
When there are more trustees than one, all must join in the execution of the trust, except where the instrument of trust otherwise provides. ...
49Control of discretionary power
Where a discretionary power conferred on a trustee is not exercised reasonably and in good faith, such power may be controlled by a principal civil court of o...
50Trustee may not charge for services
In the absence of express directions to the contrary contained in the instrument of trust or of a contract to the contrary entered into with the beneficiary o...
51Trustee may not use trust property for his own profit
A trustee may not use or deal with the trust-property for his own profit or for any other purpose unconnected with the trust. ...
52Trustee for sale or his agent may not buy
No trustee whose duty it is to sell trust-property, and no agent employed by such trustee for the purpose of the sale, may, directly or indirectly, buy the sa...
53Trustee may not buy beneficiary's interest without permission
Not trustee, and no person who has recently ceased to be a trustee, may, without the permission of a principal civil court of original jurisdiction, buy or be...
54Co-trustees may not lend to one of themselves
A trustee or co-trustee whose duty it is to invest trust-money on mortgage or personal security must not invest it on a mortgage by, or on the personal securi...
Chapter VIThe Rights And Liabilities Of The Beneficiary
55Rights to rents and profits
The beneficiary has, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust property. ...
56Right to specific execution
The beneficiary is entitled to have the intention of the author of the trust specifically executed to the extent of the beneficiary's interest; Right to trans...
57Right to inspect and take copies of instrument of trust, accounts, etc.
The beneficiary has a right, as against the trustee and all persons claiming under him with notice of the trust, to inspect and take copies of the instrument ...
58Right to transfer beneficial interest
The beneficiary, if competent to contract, may transfer his interest, but subject to the law for the time being in force as to the circumstances and extent in...
59Right to sue for execution of trust
Where no trustees are appointed or all the trustees die, disclaim, or are discharged, or where for any other reason, the execution of a trust by the trustee i...
60Right to proper trustees
The beneficiary has a right (subject to the provisions of the instrument of trust) that the trust-property shall be properly protected and held and administer...
61Right to compel to any act of duty
The beneficiary has a right that his trustee shall be compelled to perform any particular act of his duty as such, and restrained from committing any contempl...
62Wrongful purchase by trustee
Where a trustee has wrongfully bought trust-property, the beneficiary has a right to have the property declared subject to the trust or retransferred by the t...
63Following trust property-into the hands of third persons; into that into which it has been converted
Where trust-property comes into the hands of a third person inconsistently with the trust, the beneficiary may require him to admit formally, or may institute...
64Saving of rights of certain transferees
Nothing in section 63 entitles the beneficiary to any right in respect of property in the hands of- (a) a transferee in good faith for consideration without ha...
65Acquisition by trustee of trust-property wrongfully converted
Where a trustee wrongfully sells or otherwise transfers trust-property and afterwards himself becomes the owner of the property, the property again becomes su...
66Right in case of blended property
Where the trustee wrongfully mingles the trust-property with his own, the beneficiary is entitled to a charge on the whole fund for the amount due to him. ...
67Wrongful employment by partner-trustee of trust-property for partnership purposes
If a partner, being a trustee, wrongfully employs trust-property in the business or on the account of the partnership, no other partner is liable therefor in ...
68Liability of beneficiary joining in breach of trust
Where one of several beneficiaries- (a) joins in committing breach of trust, or (b) knowingly obtains any advantage there from, without the consent of the othe...
69Rights and liabilities of beneficiary's transferee
Every person to whom a beneficiary transfers his interest has the rights, and is subject to the liabilities, of the beneficiary in respect of such interest at...
Chapter VIIVacating The Office Of Trustee
70Office how vacated
The office of a trustee is vacated by his death or by his discharge from his office. ...
71Discharge of trustee
The trustee may be discharged from his office only as follows:- (a) by the extinction of the trust; (b) by the completion of his duties under the trust; (c) by ...
72Petition to be discharged from trust
Notwithstanding the provisions of section 11, every trustee may apply by petition to a principal civil court of original jurisdiction to be discharged from hi...
73Appointment of new trustees on death, etc.
. Whenever any person appointed a trustee disclaims, or any trustee, either original or substituted, dies, or is for a continuous period of six months absent ...
74Appointment by court
Whenever any such vacancy or disqualification occurs and it is found impracticable to appoint a new trustee under section 73, the beneficiary may, without ins...
75Vesting of trust-property in new trustees
Whenever any new trustee is appointed under section 73 or section 74, all the trust-property for the time being vested in the surviving or continuing trustees...
76Survival of trust
On the death or discharge of one of several co-trustees, the trust survives and the trust-property passes to the others, unless the instrument of trust expres...
Chapter VIIIThe Extinction Of Trusts
77Trust how extinguished
A trust is extinguished- (a) when its purpose is completely fulfilled; or (b) when its purpose becomes unlawful; or (c) when the fulfillment of its purpose beco...
78Revocation of trust
A trust created by will may be revoked at the pleasure of the testator. A trust otherwise created can be revoked only- (a) where all the beneficiaries are comp...
79Revocation not to defeat what trustees have duly done
No trust can be revoked by the author of the trust so as to defeat or prejudice what the trustees may have duly done in execution of the trust. ...
Chapter IXCertain Obligations In The Nature Of Trusts
80Where obligation in nature of trust is created
An obligation in the nature of a trust is created in the following cases. ...
81Where it does not appear that transferor intended to dispose of beneficial interest
82Transfer to one for consideration paid by another
83Trust incapable of execution or executed without exhausting trust-property
Where a trust is incapable of being executed, or where the trust is completely executed without exhausting the trust-property, the trustee, in the absence of ...
84Transfer for illegal purpose
Where the owner of property transfers it to another for an illegal purpose and such purpose is not carried into execution, or the transferor is not as guilty ...
85Bequest for illegal purpose
Where a testator bequeaths certain property upon trust and the purpose of the trust appears on the face of the will to be unlawful, or during the testator's l...
86Transfer pursuant to rescindable contract
Where property is transferred in pursuance of contract which is liable to rescission or induced by fraud or mistake, the transferee must, on receiving notice ...
87Debtor becoming creditor's representative
Where a debtor becomes the executor or other legal representative of his creditor, he must hold the debt for the benefit of the persons interested therein. ...
88Advantage gained by fiduciary
Where a trustee, executor, partner, agent, director of a company, legal advisor, or other person bound in a fiduciary character to protect the interests of an...
89Advantage gained by exercise of undue influence
Where, by the exercise of undue influence, any advantage is gained in derogation of the interests of another, the person gaining such advantage without consid...
90Advantage gained by qualified owner
Where a tenant for life, co-owner, mortgagee or other qualified owner of any property by availing himself of his position as such, gains an advantage in derog...
91Property acquired with notice of existing contract
Where a person acquires property with notice that another person has entered into an existing contract affecting that property, of which specified performance...
92Purchase by person contracting to buy property to be held on trust
Where a person contracts to buy property to be held on trust for certain beneficiaries and buys the property accordingly, he must hold the property for their ...
93Advantage secretly gained by one of several compounding creditors
Where creditors compound the debts due to them, and one of such creditors, by a secret arrangement with the debtor, gains an undue advantage over his co-credi...
94Constructive trusts in cases not expressly provided for
95Obligor's duties, liabilities and disabilities
The person holding property in accordance with any of the preceding sections of this chapter must, so far as may be, perform the same duties, and is subject, ...
96Saving of rights of bona fide purchasers
Nothing contained in this Chapter shall impair the rights of transferees in good faith for consideration, or create an obligation in evasion of any law for th...
The Schedule
(See Section 2) Year and Chapter Short Title Extent of repeal 29 Car. II, c.3 The Statute of Frauds5 Sections 7,8,9,10 and 11 ACTS OF THE GOVERNOR GENERA...
Footnotes
1 The word "or" omitted by the Trust Laws (Amendment) Act, 1975, w.e.f. 7th. January, 1975. 2 Inserted by the Trust Laws (Amendment) Act, 1975, w.e.f. 7th. J...
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