2. In this Act, unless the context otherwise requires,—
(a) “election” means any election, by whatever means held under any law for the purpose of selecting members of Parliament or of any Legislature, local authority or other public authority;
2[(aa) “prescribed” means prescribed by rules made under this Act and the expression “prescribe” shall be construed accordingly;]
(b) “public duty” means a duty in the discharge of which the State, the public or the community at large has an interest;
Explanation.—In this clause “State” includes a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617† of the Companies Act, 1956 (1 of 1956);
*Dated 9-9-1988.
1. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir Reorganization Act, 2019, w.e.f. 31-10-2019.
2. Inserted by the Prevention of Corruption (Amendment) Act, 2018, w.e.f. 26-7-2018.
†Now see Section 2(45) of the Companies Act, 2013.
INDIAN TRUSTS ACT, 1882
CHAPTER V
DISABILITIES OF TRUSTEES
CHAPTER VI
67.
70.
74.
81. [Repealed by the Benami Transactions (Prohibition) Act, 1988, w.e.f. 19-5-1988
82. [Repealed by the Benami Transactions (Prohibition) Act, 1988, w.e.f. 19-5-1988]
93.
Indian Trusts Act, 18821
[2 OF 1882]*
An Act to define and amend the law relating to Private Trusts and Trustees. Preamble.
WHEREAS it is expedient to define and amend the law relating to private trusts and trustees; it is hereby enacted as follows:—
CHAPTER I PRELIMINARY
Short title.
1. This Act may be called the Indian Trusts Act, 1882; Commencement.
And it shall come into force on the first day of March, 1882. Local extent.
2[It extends to 3[the whole of India 4[***] and] the Andaman and Nicobar Islands, 5[***]; but the Central Government may, from time to time, by notification in the Official Gazette, extend it to 6[the Andaman and Nicobar Islands] or to any part thereof.]
Savings.
But nothing herein contained affects the rules of Mohammedan law as to waqf, or the mutual relations of the members of an undivided family as determined by any customary or personal law, or applies to public or private religious or charitable
*Dated 13-1-1882.
1. This Act has been extended to Berar by the Berar Laws Act, 1941, w.e.f. 1-8-1941; Dadra and Nagar Haveli by the Dadra and Nagar Haveli (Laws) Regulation, 1963, w.e.f. 1-7-1965; Pondicherry by the Pondicherry (Laws) Regulation, 1963, w.e.f. 1-10-1963; Goa, Daman and Diu by the Goa, Daman and Diu (Laws) No. 2 Regulation, 1963, w.e.f. 19-12-1963 and State of Sikkim Vide Notification No. S.O. 642(E), dated 24-8-1984, w.e.f. 1-9-1984.
2. Substituted by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, w.e.f. 23-3-1948.
3. Substituted for “all the Provinces of India, except” by the Adaptation of Laws Order, 1950, w.e.f. 26-1-1950.
4. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir Reorganisation Act, 2019, w.e.f. 31-10-2019.
5. Words “and Panth Piploda” omitted by the Adaptation of Laws Order, 1950, w.e.f. 26-1-1950.
6. Substituted for “either or both of the said Provinces”, ibid
endowments, or to trusts to distribute prizes taken in war among the captors; and nothing in the second Chapter of this Act applies to trusts created before the said day.
COMMENTS
SECTION NOTES
This Act applies to Private Trusts and Trustees (Preamble to the Act)
Exclusions from this ACT
The provisions of this Act DO NOT AFFECT: the rules of Muhammadan law as to waqf, or the mutual relations of the members of an undivided family as determined by any customary or personal law.
The provisions of this Act do not apply to: public or private religious or charitable endowments, or trusts to distribute prizes taken in war among the captors.
Repeal of Enactments.
2. The Statute and Acts mentioned in the Schedule hereto annexed shall, to the extent mentioned in the said Schedule, be repealed, in the territories to which this Act for the time being extends.
Interpretation-clause—“trust”.
3. 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 accepted by him, for the benefit of another, or of another and the owner:
“author of the trust”; “trustee”; “beneficiary”; “trust-property”; “beneficial interest”; “instrument of trust”:
The person who reposes or declares the confidence is called the “author of the trust”; the person who accepts the confidence is called the “trustee”; the person for whose benefit the confidence is accepted is called the “beneficiary”; the subject-matter of the trust is called “trust-property” or “trust-money”; the “beneficial interest” or “interest” of the beneficiary is his right against the trustee as owner of the trust-property; and the instrument, if any, by which the trust is declared is called the “instrument of trust”;
“breach of trust”:
A breach of any duty imposed on a trustee, as such, by any law for the time being in force, is called a “breach of trust”:
“registered”:
And in this Act, unless there be something repugnant in the subject or context, “registered” means registered under the law for the registration of documents for the time being in force;
“notice”:
A person is said to have “notice” of a fact either when he actually knows that fact, or when, but for wilful abstention from inquiry or gross negligence, he would have known it, or when information of the fact is given to or obtained by his agent, under the circumstances mentioned in the Indian Contract Act, 1872 (9 of 1872), section 229; Expressions defined in Act 9 of 1872:
And all expressions used herein and defined in the Indian Contract Act, 1872 (9 of 1872), shall be deemed to have the meanings respectively attributed to them by that Act.
COMMENTS
SECTION NOTES
3.1 Definition of “trust”
The essential ingredients of a “trust” are as follows:
A “trust” is an obligation annexed to the ownership of property, Such obligation arises out of a confidence reposed in and accepted by the owner, or declared and accepted by him, and Such confidence reposed/declared and accepted is for the benefit of another, or of another and the owner.
Chapter IX deals with obligations in the nature of trusts, which are to be distinguished from trusts.
3.2 Definition of “author of the trust”
The person who reposes or declares the confidence is called the “author of the trust”.
3.3 Trustee
The person who accepts the confidence is called the “trustee”:
Chapter III of this Act, comprising sections 11 to 30, deals with the duties and liabilities of trustees. Chapter IV of this Act, comprising sections 31 to 45, deals with the rights and powers of trustees. Chapter V of this Act, comprising 46 to 54, deals with the disabilities of the trustees. Sections 70 to 76 of this Act deals with vacation of the office of trustee.
3.4 Beneficiary
the person for whose benefit the confidence is accepted is called the “beneficiary”.
Chapter VI of this Act, comprising 55 to 69, deals with the rights and liabilities of beneficiaries.
3.5 Trust-property or Trust-money
The subject matter of the trust is called “trust property” or “trust money.”
3.6 Beneficial interest
The “beneficial interest” or “interest” of the beneficiary is his right against the trustee as owner of the trust property.
3.7 Interest
See Para 3.6
3.8 Instrument of trust
The instrument, if any, by which the trust is declared is called the “instrument of trust”.