Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Jhimli Das   08 June 2022

Indian trust act 1882

"The Trustees shall be entitled to frame Rules and Regulations and to amend and very them from time to time."

How can a Trustees who are also the beneficiaries frame Rules and Regulations and to amend and very them from time to time?

The aforesaid clause is included in the Trust Deed. Kindly explain. It's a Private Debattar Trust.



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 6 Replies

Sravika Reddy Kohir   08 June 2022

Hello Jhimli Das, I acknowledge your question. Now here we are discussing about a private debutter property which is basically a religious or charitable endowment the benefits of it are limited to few people and are not available for the whole of the public you have entered into a trust deed for the same.

So, the clause that you are talking about is an operative clause that says "The Trustees shall be entitled to frame Rules and Regulations and to amend and vary them from time to time." In a private debutter trust the trustees are also the beneficiaries of the the same trust as the trust benefits are limited only to the family members, it is held in Deoki Nandan Vs. Murlidhar, that, “The distinction between a private and a public trust is that whereas in the former, the beneficiaries are specific individuals, in the latter, they are the general public or a class thereof. While in the former the beneficiaries are persons who are ascertained or capable of being ascertained, in the latter they constitute a body which is incapable of ascertainment.”

Now answering to your question that how can trustees who are also beneficiaries frame rules and regulations and amend them from time to time, we all know that a trustee can also be beneficiary when it comes to the rights duties and obligation a trustee in general has a fiduciary relationship towards the beneficiary and he has to work for the benefit of a beneficiary. Whenever a trustee is also a beneficiary his rights as a trustee will not be taken away, they shall rest with him and he should first act in the capacity of trustee and then a beneficiary.

I hope I answered your query, if you still have any query, you can drop here.

Have a good day.

1 Like

Jhimli Das   08 June 2022

Hello Sravika,

Thanks for your prompt response. It was quite helpful.

Have few more questions as follows:

1. This trust property is not serving it's purpose as to act in the benefit of the trustees cum beneficiaries as the property is in dilapidated condition we wanted to develop the said property about 12 cottahs as income is meagre and we are unable to maintain the property.

2. My grandfather had made this trust for his benefit for his lifetime, his 2 sons and their respective families and his deity Sree Sree Gopal Jew. 

3. The clauses included in the deed doesn't mention the " sell" of the property but it states that construction can be done, mortgage n lease etc.

4. We appealed to the district judge but the appeal was dismissed as it was not maintainable under sec 34 of the Indian Trust Act as the Court doesn't have the jurisdiction to grant power to sell it only gives opinion, directions etc.

5. It states that the Trustees shall be entitled to frame Rules and Regulations and to amend and very them from time to time."

6. Hence, how can we sell this property can we amend the clauses?

Kindly explain.

Best regards,

Jhimli Das.

 

 


 

DR.VEDULA GOPINATH (ADVOCATE AND CORPORAE ADVISOR)     09 June 2022

 

There is a principle -  A PERSON INTERESTED IN THE TRANSACTION CANNOT APPROVE HIMSELF.

when a persons work in a fiduciary position.  Here Trustee is both fidicuary role and beneficiary. 

Thus  an appeal can be made to the District Judge duly approved/signed by all beneficiaries incuding an undertaking that the temple shall be maintained by all the beneficiaries even after sale of the property.

dr vedula gopinath  vgnath@gmail.com

 

 

Jhimli Das   09 June 2022

Sir, 

Thankyou for your response.

If you read my previous message we have already appealed to the District Judge but the appeal has been dismissed as it not maintainable under sec 34 of the Indian Trust Act as the court doesn't have the jurisdiction to sell the property all it can do is to give opinion n directions in the trust matter.

It also stated that the Courts permission is not at all necessary for a private debottar property as the trustees can do for the benifit and maintenance of the Trust.

It also included sec 36 of the Indian Trust Act that the Trustees should follow the instrument of the trust.

Hence, my question is in the instrument  sell hasn't been included only mortgage n lease.

But, it the instrument states that the Trustees have the power to amend the trust n frame rules and regulations from time to time.

Hence can the trustees amend the trust and include sell? How to amend a trust when the power is given to the trustees?

Regards,

Jhimli Das 

DR.VEDULA GOPINATH (ADVOCATE AND CORPORAE ADVISOR)     09 June 2022

Thanks for update.

The only option left to the Trustees is to unanimously meet and amend the Trust deed to approve sale and also its consequential appropriation of the sale proceeds.

 

dr vedula gopinath

 

1 Like

Jhimli Das   09 June 2022

Sir, 

Thankyou so much.

What is the procedure to amend the Trust Deed?

Do we have to register the amended trust deed? Or will it be an annexure to the present trust deed?

Kindly explain.

Best regards,

Jhimli Das.


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