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Central Government Act
Section 11 in The Indian Trusts Act, 1882
11. Trustee to execute trust.—The trustee is bound to fulfil 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 modified by the consent of all the beneficiaries being competent to contract. Where the beneficiary is incompetent to contract, his consent may, for the purposes of this section, be given by a principal Civil Court of original jurisdiction. Nothing in this section shall be deemed to require a trustee to obey any direction when to do so would be impracticable, illegal or manifestly injurious to the beneficiaries. Explanation.—Unless a contrary intention be expressed, the purpose of a trust for the payment of debts shall be deemed to be
(a) to pay only the debts of the author of the trust existing and recoverable at the date of the instrument of trust or when such instrument is a will, at the date of his death, and (b) in the case of debts not bearing interest, to make such payment without interest. Illustrations
(a) A, a trustee, is simply authorised to sell certain land by public auction. He cannot sell the land by private contract.
(b) A, a trustee of certain land for X, Y and Z, is authorised to sell the land to B for a specified sum. X, Y and Z, being competent to contract, consent that A may sell the land to C for less sum. A may sell the land accordingly.
(c) A, a trustee for B and her children, is directed by the author of the trust to land, on B’s request, trust property to B’s husband, C, on the security of his bond. C becomes insolvent, and B requests A to make the loan, A may refuse to make it. Comments
(i) The trust need not be retained in its original form and it can be dissolved, varied, modified or revoked provided all the beneficiaries concerned who are competent to contract give their respective consent to such resort/procedure; Prince Muffakham Jah Bahadur v. H.E.H. Nawab Mir Barkat Ali Khan Bahadur Prince Mukarram Jah, AIR 1989 AP 68.
(ii) Where the administration of the trust is vested in co-trustees, they all form, as it were, but one collective trustee and must execute the duties of the office in their joint capacity; R.P. Kapur v. K. Educational Trust, ILR (1982) 1 Del 801.