Trust property

Vaani Iyer (Querist) 30 March 2023 This query is : Resolved
Can the assets of an educational trust be sold without the permission of the court, if it is mentioned in the trust deed that- the assets of the trust can be sold.?

Pls suggest relevant case laws I can look into.

Follow Query

Report Abuse

Quick Summary

Generally, selling, mortgaging, or exchanging trust property requires prior court permission, even if the trust deed suggests otherwise. The Delhi High Court has affirmed this principle for all trust types. While trustees must follow the trust creator's directions, they are not bound by impractical, illegal, or harmful instructions. Consent from competent beneficiaries can modify directions, or a court can grant consent if beneficiaries are not competent to contract.

Sudhir Kumar, Advocate (Expert) 31 March 2023
one has to read trust deed for forming a concrete view.

Advocate Bhartesh goyal (Expert) 31 March 2023
No, Trust property can not be sold,motgaged or exchanged without obtaining prior permission from the court.

T. Kalaiselvan, Advocate (Expert) 31 March 2023
The Delhi High Court has stated that prima facie, no trust property can be held, sold, mortgaged, or exchanged without obtaining prior permission from the court.
This rule applies to all types of trusts, including both religious and non-religious trusts, and applies to properties belonging to churches, temples, and other places of worship.

Also note that according to section 11 of the Indian Trusts Act, 1882, a trustee is required to carry out the purpose of the trust and follow any directions given by the person who created the trust at the time of its creation, unless those directions are modified with the consent of all competent beneficiaries. If the beneficiary is not competent to contract, their consent may be given by a principal civil court of original jurisdiction. However, a trustee is not required to follow any directions that would be impractical, illegal, or harmful to the beneficiaries.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries