Report No. 17
18. Section 8.-
A suggestion has been made that the words "it must not be merely beneficial interest under an existing trust", should be omitted. It is no doubt true that in England, there can be a trust of an equitable estate or chose in action or of a right or obligation under an ordinary legal contract just as much as a trust of land.1 In India equitable estates are not recognised. The Indian Law Commission which considered the Indian Trusts Bill, 1879, was not in favour of creating trusts in respect of the beneficial interest of a beneficiary, the reason given being that the recognition of such a trust would give rise to complications. This opinion was endorsed by the Government, as could be seen from the Statement of Objects and Reasons.2 We agree with this view and we see no reason to introduce such a complication in the law. No alteration is necessary.
1. See the observations of Lord Shaw in Strathcona S.S. Co. v. Dominion Coal Co., (1926) AC 108 (124).
2. Gazette of India, 1880, Pt. V, p. 494.
19. Section 9.- No change.