The Indian Trust Act, 1882

This Act may be called the Indian Trusts Act, 1882: Commencement.-- and it shall come into force on the first day of March, 1882. Local extent.-- 1[It extends to 2[the whole of India 3*** and] the Andaman and NicobarIslands 4***; but the Central Government may, from time to time, by notification in theOfficial Gazette, extend it to 5[the, Andaman and Nicobar Islands] or to any part thereof.] Savings.-- But nothing herein contained affects the rules of Muhammadan law as to waqf, or themutual relations of the members of an undivided family as determined by any customary or personallaw, or applies to public or private religious or charitable endowments, or to trusts to distributeprizes taken in war among the captors; and nothing in the second Chapter of this Act applies totrusts created before the said day.

The Statute and Acts mentioned in the Schedule hereto annexed shall, tothe extent mentioned in the said Schedule, be repealed, in the territories to which this Act for the timebeing extends.

A "trust":-- is an obligation annexed to the ownership ofproperty, and arising out of a confidence reposed in and accepted by the owner, or declared and acceptedby him, for the benefit of another, or of another and the owner: "author of the trust": "trustee": "beneficiary": "trust-property": "beneficial interest":"instrument of trust":-- "the person who reposes or declares the confidence is called the "author of thetrust": the person who accepts the confidence is called the trustee: the person for whose benefit theconfidence is accepted is called the "beneficiary": the subject-matter of the trust is called "trust-property"or "trust-money": the "beneficial interest" or "interest" of the beneficiary is his right against the trusteeas owner of the trust-property; and the instrument, if any, by which the trust is declared is called the"instrument of trust": "breach of trust":-- "a breach of any duty imposed on a trustee, as such, by any law for the timebeing in force, is called a "breach of trust": "registered" :"and in this Act, unless there be something repugnant in the subject or context,registered" means registered under the law for the registration of documents for the time being in force: "notice": "a person is said to have notice of a fact either when he actually knows that fact orwhen, but for wilful abstention from inquiry or gross negligence, he would have known it, or wheninformation of the fact is given to or obtained by his agent, under the circumstances mentioned in theIndian Contract Act, 1872 (9 of 1872), section 229; Expressions defined in Act 9 of 1872:--and all expressions used herein and defined in the IndianContract Act, 1872 (9 of 1872), shall be deemed to have the meanings respectively attributed to them bythat Act.

A trust may be created for any lawful purpose. The purpose of a trust islawful unless it is (a) forbidden by law, or (b) is of such a nature that, if permitted, it woulddefeat the provisions of any law, or (c) is fraudulent, or (d) involves or implies injury to theperson or property of another, or (e) the Court regards it as immoral or opposed to public policy. Every trust of which the purpose is unlawful is void. And where a trust is created for two purposes, ofwhich one is lawful and the other unlawful, and the two purposes cannot be separated, the whole trust isvoid. Explanation.-- In this section, the expression law includes, where the trust-property is immoveableand situate in a foreign country, the law of such country. Illustrations (a) A conveys property to B in trust to apply the profits to the nurture of female foundlings to be trained up as prostitutes.The trust is void. (b) A bequeaths property to B in trust to employ it in carrying on a smuggling business, and out of the profits thereof tosupport A's children. The trust is void. (c) A, while in insolvent circumstances, transfers property to B in trust for A during his life, and after his death for B. A isdeclared an insolvent. The trust for A is invalid as against his creditors.

No trust in relation to immoveable property is validunless declared by a non-testamentary instrument in writing signed by the author of the trust orthe trustee and registered, or by the will of the author of the trust or of the trustee. Trust of moveable property.-- No trust in relation to moveable property is valid unlessdeclared as aforesaid, or unless the ownership of the property is transferred to the trustee. These rules do not apply where they would operate so as to effectuate a fraud.