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Indian Trusts Act, 1882 – Section Summary

SectionRuleKey ConceptCase Law
3Interpretation clauseDefines trust, trustee, beneficiary, and trust propertyCIT v Kamalini Khatau
4Lawful purposeTrust must be for a legal (lawful) purposeGherulal Parakh v Mahadeodas Maiya
5Trust of immovable propertyMust be created in writing and registeredBai Hira Devi v Official Assignee
6Creation of trustTrust created by clear intention, purpose, and beneficiaryKnight v Knight
7Who may create trustAny person competent (legally capable) can create a trustMohd. Ismail v Thakur Sabir Ali
8Subject of trustTrust must have definite propertyTagore v Tagore
9Who may be beneficiaryAny person capable of holding property can be beneficiaryRai Bishwanath v Sri Thakur Radha Ballabhji
10Who may be trusteeAny person capable of holding property can be trusteeOfficial Trustee v Sachindra Nath
11Trustee to execute trustTrustee must follow the purpose of the trustSpeight v Gaunt
13Trustee to protect titleTrustee must protect ownership rights of trust propertyLuker v Dennis
15Care required from trusteeTrustee must act with reasonable care like a prudent (careful) personSpeight v Gaunt
16Conversion of perishable propertyTrustee must convert wasting property if neededHowe v Earl of Dartmouth
17Trustee to be impartialTrustee must treat all beneficiaries fairlyCowan v Scargill
18Trustee to prevent wasteTrustee must prevent loss or damage to propertyLearoyd v Whiteley
19Accounts and informationTrustee must keep accounts and give informationRe Londonderry’s Settlement
20Investment of trust moneyTrustee must invest money safely as per lawNestle v National Westminster Bank
23Liability for breach of trustTrustee must compensate for loss caused by breachTarget Holdings v Redferns
24No set-off allowedTrustee cannot adjust personal claims against trustEx parte James
25Non-liability for predecessorTrustee not liable for earlier trustee’s actsRe Strahan
26Non-liability for co-trusteeTrustee not liable for co-trustee unless negligentBahinabai v Damodar
28Beneficiary’s rightsBeneficiary has right to benefits and informationSaunders v Vautier
31Right to specific executionBeneficiary can force trustee to perform dutiesLloyd v Banks
32Right to inspect documentsBeneficiary can see trust documentsRe Londonderry’s Settlement
34Right to apply to courtTrustee can seek court guidancePublic Trustee v Cooper
35Right to indemnityTrustee can recover expenses from trust propertyWorrall v Harford
36Right to reimbursementTrustee can claim repayment for proper expensesEx parte Belchier
47Trustee cannot delegateTrustee cannot pass duties to others except in some casesSpeight v Gaunt
51Co-trustees cannot act aloneAll trustees must act togetherLuke v South Kensington Hotel Co.
52Control of discretionary powerCourt can control misuse of powerTempest v Lord Camoys
53Trustee may not use trust property for own benefitTrustee cannot use property for personal gainKeech v Sandford
55Rights of beneficiaryBeneficiary has full rights to benefitsSaunders v Vautier
56Right to rents and profitsBeneficiary entitled to income from trust propertyRe Smith
58Right to transfer beneficial interestBeneficiary can transfer his interestTagore v Tagore
60Right to proper trusteesBeneficiary can demand proper managementLetterstedt v Broers
61Right to compel trustee to perform dutyBeneficiary can force trustee to act properlyLloyd v Banks
63Following trust propertyBeneficiary can trace property if misusedFoskett v McKeown
64Saving rights of bona fide purchaserBuyer in good faith is protectedPilcher v Rawlins
72Trustee’s duty on completionTrustee must hand over property when trust endsSaunders v Vautier
73Liability for breach after trust endsTrustee still liable for earlier breachTarget Holdings v Redferns
77Extinction of trustTrust ends when purpose is fulfilled, unlawful, impossible, or revokedVidyodaya Trust v Mohan Prasad
78Revocation of trustTrust can be revoked (cancelled) in certain casesAtmaram v Gulamhusein