342 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
8. What happens when there is only one trustee and he disclaims.
Two things can happen :—
(i) A new trustee may be appointed under section 73—
(a) By one mentioned in the trust.
(b) If there be none such, by the settlor if alive and competent to contract.
(ii) If no trustee is appointed in place of the one who has disclaimed the property reverts to the settlor or his representatives if he is dead.
9. What happens to the property ? Is it freed from the trust ? Does it remain subject to the trust ?
The answer is that the trust is not extinguished. The settlor or his representatives, if the settlor is dead, holds it on trust for the beneficiary. In other words the settor or his representative becomes the trustee in place of the trustee who has disclaimed.
The rule is that a trust will never fail for want of a trustee. Wherever a trust exists, and there is no trustee to execute it, the person in whom the legal estate vests holds the property as trustee. This rule is intended to protect the beneficiary.
Mallott vs. Wilson (1903) 2 Ch. 494.
II. D ISCLAIMER AND ACCEPTANCE BY B ENEFICIARY —
Section 9
A beneficiary is not bound to accept the trust. He may accept it or he may disclaim it.
His disclaimer amounts to a renunciation of his interest under the trust.
If he wishes to disclaim he can do so in two ways :
(i) By a disclaimer addressed to the trustee or
(ii) By setting up a claim inconsistent with the trust with the knowledge of the trust.
- A claim inconsistent with the trust would be a claim such as ownership of the trust property.
4. What happens to the trust when the beneficiary disclaims ?
III. T HE E STATE OF A T RUSTEE UNDER A T RUST . (Page left blank)
IV. T HE E STATE OF A B ENEFICIARY UNDER A T RUST . (Page left blank)
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