The Indian

Trust Act, 1882

Pradeep Kumar Patra

Baripada, Orissa
 Indian Trust Act, 1882

INDIAN TRUST ACT

1982
Sec. 3. TRUST is an obligation
annexed to the ownership of
property, arising out of confidence
reposed in and accepted by the
owner or declared and accepted by
him for the benefit of another or
another and the owner.
 Indian Trust Act, 1882

• (i) The person who reposes or

declares the confidence is called the
Author of the Trust or settler.
• (ii) The person who accepts the
confidence is called the Trustee.
• (iii) The person for whose benefit the
confidence is accepted is called
beneficiary.
• (iv) The subject matter of the trust is
called the Trust Property or Trust
money.
 Indian Trust Act, 1882

Sec 4. Lawful
purpose
A trust may be created for lawful
purpose. The
purpose of a trust is unlawful in the
following cases:
(i) If it is forbidden by law.
(ii) If the trust is fraudulent.
(iii) If the trust involves injury to
the person or property of
another.
 Indian Trust Act, 1882

A trust with unlawful purpose is

always void. However when a trust is
having both lawful and unlawful
purposes and two purposes cannot be
separated the whole trust is void.
 Indian Trust Act, 1882

Sec.5. To create a valid trust of

immovable property it must be
declared by will of the author or by
non-testamentary instrument in
writing signed by the author or
trustee and registered.
However in respect of movable
property, the trust must be declared
by a non-testamentary instrument
and the ownership of the property is
transferred to the trustee.
 Indian Trust Act, 1882

Sec 6 Creation of trust :

A trust is created when the author
indicates with reasonable certainly
by any words or acts.
(i) An intention to create a
trust.
(ii) The purpose of the trust.
(iii) Who are the beneficiaries.
(iv) Identify the trust property
and
(v) Transfers the trust property
 Indian Trust Act, 1882

Sec.19. Trustee is bound to keep

clear and accurate accounts of the
trust property and furnish full and
accurate information as to the
amount and state of trust property
to the beneficiary.
Sec .23.Liability or breach of
trust.
If the trustee commits breach of
trust he is liable to make good the
loss sustained by the trust
property or beneficiary along with
 Indian Trust Act, 1882

Trustee will be liable in the

following cases:
• (i) Where he has actually received
interest.
• (ii) Where there is unreasonable
delay in paying trust money to the
beneficiary.
• (iii) Where the trustee ought to
have received interest by has not
done so.
 Indian Trust Act, 1882

This will not apply if,

• (i) The beneficiary has by fraud
induced the trustee to commit such
breach
• (ii) Beneficiary, being competent to
contract, has himself concurred in
the breach.
 Indian Trust Act, 1882

Sec 68 Revocation of
trust
A trust created by will may be
revoked at the
pleasure of the testator.
A trust created otherwise may be
revoked in
the following cases:
 Where all the beneficiaries are
competent to contract , by their
consent.
 Indian Trust Act, 1882

Sec 68 Revocation of
trust
 Where a trust has been declared by
a non-testamentary instrument–in
exercise of power of revocation
expressly reserved to the author.
 Where a trust is created for the
payment of debts of the author and
has not been communicated to the
creditors – at the pleasure of the
author.
 Indian Trust Act, 1882

Sec. 77. Trust how

extinguished

• (i)When its purpose is completely

fulfilled, or
• (ii)When its purpose become
unlawful, or
• (iii)When fulfilment of its purpose
become impossible by destruction of
the Trust property, or
• (iv)When trust being revocable,
 Thank
You