Report No. 17
Section 3.- For section 3 of the principal Act, the following section shall be substituted, namely:-
"3. Interpretation.-In this Act, unless the context otherwise requires,-
(a) "breach of trust" means a breach of any duty imposed on a trustee, as such, by any law for the time being in force;
(b) "district court" means, the principal civil court of original jurisdiction, and includes any other civil court which may be specified by the State Government, by notification in the Official Gazette, as having jurisdiction in respect of the matters dealt with in this Act;
[Cf. section 3(6), Hindu Marriage Act, 1955]
(c) "instrument of trust" means the instrument, if any, by which a trust is declared;
(d) "notice".-A person is said to have notice of a fact when he actually knows that fact, or when but for wilful abstention from an inquiry or search which he ought to have made or gross negligence, he would have known it.
Explanation (1).-Where any transaction relating to immovable property is required by law to be and has been effected by a registered instrument, any person acquiring such property or any part of, or share or interest in, such property shall be deemed to have notice of such instrument as from the date of registration or, where the property is not all situated in one sub-district, or where the registered instrument has been registered under sub-section (2) of section 30 of the Indian Registration Act, 1908 (16 of 1908), from the earliest date on which any memorandum of such registered instrument has been filed by any Sub-Registrar within whose sub-district any part of the property which is being acquired, or of the property wherein a share or interest is being acquired, is situated:
(i) the instrument has been registered and its registration completed in the manner prescribed by the Indian Registration Act, 1908 (16 of 1908), and the rules made thereunder;
(ii) the instrument or memorandum has been duly entered or filed, as the case may be, in books kept under section 51 of that Act; and
(iii) the particulars regarding the transaction to which the instrument relates have been correctly entered in the indices kept under section 55 of that Act.
Explanation (2).-Any person acquiring any immovable property or any share or interest in any such property shall be deemed to have notice of the title, if any, of any person who is for the time being in actual possession thereof.
Explanation (3).-A person shall be deemed to have had notice of any fact if his agent acquires notice thereof whilst acting on his behalf in the course of business to which that fact is material:
Provided that, if the agent fraudulently conceals the fact, the principal shall not be charged with notice thereof as against any person who was a party thereto or otherwise cognizant of the fraud,
(e) "registered" means registered under the law for the time being in force for the registration of documents;
[Cf. section 3(49) and 4(2) of the General Clauses Act, 1897]
(f) "trust" means an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner; and-
(i) "author of the trust" means the person who reposes or declares the confidence out of which the trust arises;
(ii) "beneficiary" means the person for whose benefit the confidence, out of which the trust arises, is accepted;
(iii) "beneficial interest" or "interest of the beneficiary" means the right of the beneficiary against the trustee as owner of the trust property;
(g) "trustee" means the person who accepts the confidence out of which a trust arises;
(h) "trust-property" or "trust-money" means the subject-matter of the trust; and
(i) all words and expressions used and not defined in this Act but defined in the Indian Contract Act, 1872 (9 of 1872), shall have the meanings respectively assigned to them in that Act".