PART V
The Administration of a Constructive Trust
THE INDIAN TRUST ACT
The Law relating to Trust is contained in Act II of 1882.
It is an Act which defines and amends—that means that it does not introduce any new principle.
The Act does not consolidate the Law—That means that it is not an Exhaustive Code.
The object of the Act was to group in one to enact the legal provisions relating to trusts. Before the Act of 1882 the statutory law relating to trust was contained in 29 Car II. C. 31 sections 7 — 11.
Act XXVII of 1866
Act XXVIII of 1866
There were also few isolated provisions scattered through the Penal Code, Specific Relief, C. P. Code Stamp Act, Limitation, Government Securities Act, Companies Act, Presidency Banks Act.
As originally passed, the Act did not apply to the whole of British India. For instance, it did not apply to Bombay. But provision was made to extend it by notification by local Government.
It is unnecessary to discuss here whether the Hindu Law and Mohammedan Law recognized trust as defined in the Trust Act. That may be dealt with by others.
The nature of a Trust
- Trust is defined in section 3. A trust involves three things :
(1) A person who is the owner of some property.
(2) Ownership burden with an obligation.
(3) Obligation to use the property for the benefit of another or of another and himself.
- It is ownership without beneficial enjoyment. It involves separation of ownership and beneficial enjoyment.