29. Liability of trustee where beneficiary’s interest is forfeited to Government.—When the beneficiary’s interest is forfeited or awarded by legal adjudication 19 [to the Government], the trustee is bound to hold the trust property to the extent of such interest for the benefit of such person in such manner as 20 [the State Government] may direct in this behalf.
28. Non-liability of trustee paying without notice of transfer by beneficiary.—When any beneficiary’s interest becomes vested in another person, and the trustee, not having notice of the vesting, pays or delivers trust property to the person who would have been entitled thereto in the absence of such vesting, the trustee is not liable for the
27. Several liability of co-trustee.—Where co-trustees jointly commit a breach of trust, or where one of them by his neglect enables the other to commit a breach of trust, each is liable to the beneficiary for the whole of the loss occasioned by such breach. Contribution as between co-trustees.—But, as between the trustees themselves, if
26. Non-liability for co-trustee’s default.—Subject to the provisions of sections 13 and 15, a trustee is not, as such, liable for a breach of trust committed by his co-trustee: Provided that, in the absence of an express declaration to the contrary in the instrument of trust, a trustee is so liable— (a) where he has delivered
25. Non-liability for predecessor’s default.—When a trustee succeeds another, he is not, as such, liable for the acts or defaults of his predecessor. Complete: The Indian Trusts Act, 1882
24. No set-off allowed to trustee.—A trustee who is liable for a loss occasioned by a breach of trust in respect of one portion of the trust property cannot set-off against his liability a gain which has accrued to another portion of the trust property through another and distinct breach of trust. Complete: The Indian
23. Liability for breach of trust.—Where the trustee commits a breach of trust, he is liable to make good the loss which the trust property or the beneficiary has thereby sustained, unless the beneficiary has by fraud induced the trustee to commit the breach, or the beneficiary, being competent to contract, has himself, without coercion
22. Sale by trustee directed to sell within specified time.—Where a trustee directed to sell within a specified time extends such time the burden of proving, as between himself and the beneficiary, that the latter is not prejudiced by the extension lies upon the trustee, unless the extension has been authorised by a principal Civil
21. Mortgage of land pledged to Government under Act 26 of 1871—Deposit in Government Savings Bank.—Nothing in section 20 shall apply to investments made before this Act comes into force, or shall be deemed to preclude an investment on a mortgage of immovable property already pledged as security for an advance under the Land Improvement
20. Investment of trust-money.—Where the trust property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee is bound (subject to any direction contained in the instrument of trust) to invest the money on the following securities and on no others:— (a) in promissory notes,