55. Rights 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.
56. Right 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 transfer of possession.—and, where there is only one beneficiary and he is
competent to contract, or where there are several beneficiaries and they are competent to
contract and all of one mind, he or they may require the trustee to transfer the trust -property
to him or them, or to such person as he or they may direct.
When property has been transferred or bequeathed for the benefit of a married woman, so
that she shall not have power to deprive herself of her beneficial interest, nothing in the second
clause of this section applies to such property during her marriage.
Illustrations
Certain Government securities are given to trustees upon trust to accumulate the interest until A attains the age of 24, and
then to transfer the gross amount to him. A on attaining majority may, as the person exclusively interested in the trust-property,
require the trustees to transfer it immediately to him.
A bequeaths Rs.10,000 to trustees upon trust to purchase an annuity for B, who has attained his majority and is otherwise
competent to contract. B may claim the Rs. 10,000.
A transfers certain property to B and directs him to sell or invest it for the benefit of C, who is competent to contract. C may
elect to take the property in its original character.
57. Right 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
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inspect and take copies of the instrument of trust, the documents of title relating solely to the
trust-property, the accounts of the trust-property and the vouchers (if any) by which they are
supported, and the cases submitted and opinions taken by the trustee for his guidance in the
discharge of his duty.
58. Right 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 and to which he may dispose of such interest:
Provided that when property is transferred or bequeathed for the benefit of a married
woman, so that she shall not have power to deprive herself of her beneficial interest, nothing
in this section shall authorise her to transfer such interest during her marriage.
59. Right 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 is or becomes impracticable, the beneficiary may institute a suit for the execution of
the trust, and the trust shall, so far as may be possible, be executed by the Court until the appointment of a
trustee or new trustee.
60. Right 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
administered by proper persons and by a proper number of such persons.
Explanation I.—The following are not proper persons within the meaning of this section:—
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 the personal law of the beneficiary allows
otherwise, a married woman and a minor.
Explanation II.—When the administration of the trust involves the receipt and custody of money, the
number of trustees should be two at least.
Illustrations
(a) A, one of several beneficiaries, proves that B, the trustee, has improperly disposed of part of the trust-property, or that
the property is in danger from B’s being in insolvent circumstances, or that he is incapacitated from acting as trustee. A may
obtain a receiver of the trust-property.
(b) A bequeaths certain jewels to B in trust for C. B dies during A’s lifetime; then A dies. C is entitled to have the property
conveyed to a trustee for him.
(c) A conveys certain property to four trustees in trust for B. Three of the trustees die. B may institute a suit to have three
new trustees appointed in the place of the deceased trustees.
(d) A conveys certain property to three trustees in trust for B. All the trustees disclaim. B may institute a suit to have three
trustees appointed in place of the trustees so disclaiming.
(e) A, a trustee for B, refuses to act, or goes to reside permanently out of 1
[India], or is declared an insolvent, or compounds
with his creditors, or suffers a co-trustee to commit a breach of trust. B may institute a suit to have A removed and a new trustee
appointed in his room.
61. Right 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
contemplated or probable breach of trust.
Illustrations
(a) A contracts with B to pay him monthly Rs.100 for the benefit of C. B writes and signs a letter declaring that he will hold
in trust for C the money so to be paid. A fails to pay the money in accordance with his contract. C may compel B on a proper
indemnity to allow C to sue on the contract in B’s name.
(b) A is trustee of certain land, with a power to sell the same and pay the proceeds to B and C equally. A is about to
make an improvident sale of the land. B may sue on behalf of himself and C for an injunction to restrain A from making
the sale.
1. Subs. by the A.O. 1950, for “the Provinces”.
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62. Wrongful 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
trustee, if it remains in his hands unsold, or, if it has been bought from him by any person with
notice of the trust, by such person. But in such case the beneficiary must repay the purchase -money
paid by the trustee, with interest, and such other expenses (if any) as he has properly incurred in
the preservation of the property; and the trustee or purchaser must (a) account for the net profits of
the property, (b) be charged with an occupation-rent, if he has been in actual possession of the
property, and (c) allow the beneficiary to deduct a proportionate part of the purchase -money if the
property has been deteriorated by the acts or omissions of the trustee or purchaser.
Nothing in this section—
(a) impairs the rights of lessees and others who, before the institution of a suit to have the
property declared subject to the trust or retransferred, have contracted in good faith with the trustee or
purchaser; or
(b) entitles the beneficiary to have the property declared subject to the trust or retransferred
where he, being competent to contract, has himself, without coercion or undue influence having been
brought to bear on him, ratified the sale to the trustee with full knowledge of the facts of the case and
of his rights as against the trustee.
63. Following trust-property—into the hands of third persons;—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 a suit for a declaration, that the property is comprised in the trust.
into that into which it has been converted.—Where the trustee has disposed of trust-property
and the money or other property which he has received therefor can be traced in his hands, or the
hands of his legal representative or legatee, the beneficiary has, in respect thereof, rights as nearly as
may be the same as his rights in respect of the original trust-property.
Illustrations
(a) A, a trustee for B of Rs. 10,000, wrongfully invests the Rs. 10,000 in the purchase of certain land. B is entitled to the
land.
(b) A, a trustee, wrongfully purchases land in his own name, partly with his own money, partly with money
subject to a trust for B. B is entitled to a charge on the land for the amount of the trust-money so misemployed.
64. Saving 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 having notice of the trust, either when the
purchase-money was paid, or when the conveyance was executed, or
(b) a transferee for consideration from such a transferee.
A judgment-creditor of the trustee attaching and purchasing trust-property is not a transferee for
consideration within the meaning of this section.
Nothing in section 63 applies to money, currency notes and negotiable instruments in the hands of a
bona fide holder to whom they have passed in circulation, or shall be deemed to affect the Indian Contract
Act, 1872 (9 of 1872), section 108, or the liability of a person to whom a debt or charge is transferred.
65. Acquisition 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 subject to the trust, notwithstanding any want of notice on the part of intervening
transferees in good faith for consideration.
66. Right in case of blended property.—Where the trustee wrongfully mingles the trustproperty with his own, the beneficiary is entitled to a charge on the whole fund for the amount due
to him.
67. Wrongful 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
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the partnership, no other partner is liable therefor in his personal capacity to the beneficiaries, unless
he had notice of the breach of trust.
The partners having such notice are jointly and severally liable for the breach of trust.
Illustrations
(a) A and B are partners. A dies, having bequeathed all his property to B in trust for Z, and appointed B his sole executor. B,
instead of winding up the affairs of the partnership, retains all the assets in the business. Z may compel him, as partner, to
account for so much of the profits as are derived from A’s share of the capital. B is also answerable to Z for the improper
employment of A’s assets.
(b) A, a trader, bequeaths his property to B in trust for C, appoints B his sole executor, and dies. B enters into partnership
with X and Y in the same trade, and employs A’s assets in the partnership-business. B gives an indemnity to X and Y against the
claims of C. Here X and Y are jointly liable with B to C as having knowingly become parties to the breach of trust committed by
B.
68. Liability 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 therefrom, without the consent of the other beneficiaries, or
(c) becomes aware of a breach of trust committed or intended to be committed, and either
actually conceals it, or does not within a reasonable time take proper steps to protect the interests of
the other beneficiaries, or
(d) has deceived the trustee and thereby induced him to commit a breach of trust,
the other beneficiaries are entitled to have all his beneficial interest impounded as against him and
all who claim under him (otherwise than as transferees for consideration without notice of the
breach) until the loss caused by the breach has been compensated.
When property has been transferred or bequeathed for the benefit of a married woman, so that
she shall not have power to deprive herself of her beneficial interest, nothing in this section applies
to such property during her marriage.
69. Rights 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 the date of the transfer.