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Report No. 17

Section 62A.- After section 62 of the principal Act, the following section shall be inserted, namely:-

"62A. Acquisition by trustee or his transferee of trust-property wrongfully converted.-(1) Where a trustee wrongfully sells or otherwise transfers trust-property and afterwards himself becomes the owner of the property, the beneficiary has a right to have the property declared subject to the trust or re-transferred by the trustee, notwithstanding any want, of notice on the part of intervening transferees in good faith for consideration.

(2) Where a trustee, in breach of trust, sells or otherwise transfers trust-property to a person who has notice of the breach of trust, and the transferee transfers the property to any other person and afterwards himself becomes the owner of the property, the beneficiary has the right to have the property declared subject to trust or re-transferred by the first-mentioned transferee, notwithstanding any want of notice on the part of intervening transferees in good faith for consideration.

(3) The beneficiary shall not be entitled to the benefit of this section unless he pays to the trustee or the transferee, as the case may be, the value of the consideration for the wrongful sale or transfer which, having been received by the trustee for the wrongful sale or transfer, has been applied for the benefit of the beneficiary.

Explanation.-For the purposes of this section, a trustee who wrongfully allows the trust-property to be sold by or under the decree or order of a competent court or in pursuance of any law for the recovery of arrears of land revenue or sums recoverable as such arrears, shall be deemed to have wrongfully sold the property, and the provisions of this section shall apply in relation to such sale accordingly."

[Cf. existing section 65]



Trusts Act, 1882 Back




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