Trusts Act, 1882

5/28/2018 Trusts Act, 1882 (Act No. II of 1882).
THE TRUSTS ACT, 1882
(ACT NO. II OF 1882).

[13th January, 1882]
1 An Act to define and amend the law relating to Private Trusts and Trustees.
Preamble WHEREAS it is expedient to define and amend the law relating to private trusts and trustees;
It is hereby enacted as follows:-
CHAPTER I
PRELIMINARY
Short title 1. This Act may be called the Trusts Act, 1882: and it shall come into
Commencemen force on the first day of March, 1882.
Local extent It extends to the whole of Bangladesh. But nothing herein contained
Savings
affects the rules of 2[ Muslim] law as to waqf, or the mutual relations of
the members of an undivided family as determined by any customary or
personal law, or applies to public or private religious or charitable
endowments, or to trust to distribute prizes taken in war among the
captors; and nothing in the second Chapter of this Act applies to trusts
created before the said day.
[Omitted] 2. [Omitted by section 3 and 2nd Schedule of the Bangladesh Laws

(Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
Interpretation- 3. A “trust” is an obligation annexed to the ownership of property, and

clause 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: the person who reposes or declares the confidence is
called the “author of the trust”: the person who accepts the confidence is
called the “trustee”: the person for whose benefit the confidence 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 trustee as owner of
the trust-property; and the instrument, if any, by which the trust is
declared is called the “instrument of trust”:
a breach of any duty imposed on a trustee, as such, by any law for the
time being in force, is called a “breach of trust”:
http://bdlaws.minlaw.gov.bd/print_sections_all.php?id=47 1/37
Expressions And in this Act, unless there be something repugnant in the subject or
defined in Act IX of context, “registered” means registered under the law for the registration
1872 of documents for the time being in force: a person is said to have
“notice” of a fact either when he actually knows that fact, or when, but
for wilful abstention from inquiry or gross negligence, he would have
known it, or when information of the fact is given to or obtained by his
agent, under the circumstances mentioned in the Contract Act, 1872,
section 229; and all expressions used herein and defined in the Contract
Act, 1872, shall be deemed to have the meanings respectively attributed
to them by that Act.
CHAPTER II
OF THE CREATION OF TRUSTS
Lawful purpose 4. A trust may be created for any lawful purpose. The purpose of a trust
is lawful unless it is (a) forbidden by law, or (b) is of such a nature that,
if permitted, it would defeat the provisions of any law, or (c) is
fraudulent, or (d) involves or implies injury to the person 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, of which one is lawful and the other unlawful,
and the two purposes cannot be separated, the whole trust is void.
Explanation - In this section the expression “law” includes, where the

trust-property is immoveable and 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 foundings 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 to support 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 is declared an insolvent.
The trust for A is invalid as against his creditors.
Trust of 5. No trust in relation to immoveable property is valid unless declared by

immoveable a non-testamentary instrument in writing signed by the author of the
property trust or the trustee and registered, or by the will of the author of the
trust or of the trustee.
Trust of moveable No trust in relation to moveable property is valid unless declared as

property 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.
Creation of trust 6. Subject to the provisions of section 5, a trust is created when the
author of the trust indicates with reasonable certainty by any words or
acts (a) an intention on his part to create thereby a trust, (b) the
purpose of the trust, (c) the beneficiary, and (d) the trust-property, and
(unless the trust is declared by will or the author of the trust is himself
to be the trustee) transfers the trust- property to the trustee.
Illustrations
(a) A bequeaths certain property to B, “having the fullest confidence that

he will dispose of it for the benefit of C”. This creates a trust so far as
regards A and C.
(b) A bequeaths certain property to B, “hoping he will continue it in the

family”. This does not create a trust, as the beneficiary is not indicated
with reasonable certainty.
(c) A bequeaths certain property to B, requesting him to distribute it

among such members of C's family as B should think most deserving.
This does not create a trust, for the beneficiaries are not indicated with
reasonable certainty.
(d) A bequeaths certain property to B, desiring him to divide the bulk of

it among C's children. This does not create a trust, for the trust-property
is not indicated with sufficient certainty.
(e) A bequeaths a shop and stock-in-trade to B, on condition that he

pays A's debts and a legacy to C. This is a condition, not a trust for A's
creditors and C.
Who may create 7. A trust may be created-

trusts
(a) by every person competent to contract, and,
(b) with the permission of a principal Civil Court of original jurisdiction,

by or on behalf of a minor;
but subject in each case to the law for the time being in force as to the
circumstances and extent in and to which the author of the trust may
dispose of the trust –property.
Subject of trust 8. The subject-matter of a trust must be properly transferable to the

beneficiary.
It must not be merely beneficial interest under a subsisting trust.
Who may be 9. Every person capable of holding property may be a beneficiary.

beneficiary
Disclaimer by A proposed beneficiary may renounce his interest under the trust by
beneficiary disclaimer addressed to the trustee, or by setting up, with notice of the
trust, a claim inconsistent therewith.
Who may be 10. Every person capable of holding property may be a trustee; but,
trustee where the trust involves the exercise of discretion, he cannot execute it
unless he is competent to contract.
No one bound to No one is bound to accept a trust.

accept trust
Acceptance of trust A trust is accepted by any words or acts of the trustee indicating with
reasonable certainty such acceptance.
Disclaimer of trust Instead of accepting a trust, the intended trustee may, within a
reasonable period, disclaim it, and such disclaimer shall prevent the trust-
property from vesting in him.
A disclaimer by one of two or more co-trustees vests the trust-property

in the other or others, and makes him or them sole trustee or trustees
from the date of the creation of the trust.
Illustrations
(a) A bequeaths certain property to B and C, his executors, as trustees

for D. B and C prove A's will. This is in itself an acceptance of the trust,
and B and C hold the property in trust for D.
(b) A transfers certain property to B in trust to sell it and to pay out of

the proceeds A's debts. B accepts the trust and sells the property. So far
as regards B, a trust of the proceeds is created for A's creditors.
(c) A bequeaths a lakh of Taka to B upon certain trusts and appoints him
his executor. B severs the lakh from the general assets and appropriates
it to the specific purpose. This is an acceptance of the trust.
CHAPTER III
OF THE DUTIES AND LIABILITIES OF TRUSTEES
Trustee to execute 11. The trustee is bound to fulfil the purpose of the trust, and to obey
trust the directions of the author of the trust given at the time of its creation,
except as modified by the consent of all the beneficiaries being
competent to contract.
Where the beneficiary is incompetent to contract, his consent may, for

the purposes of this section, be given by a principal Civil Court of original
jurisdiction.
Nothing in this section shall be deemed to require a trustee to obey any

direction when to do so would be impracticable, illegal or manifestly
injurious to the beneficiaries.
Explanation - Unless a contrary intention be expressed, the purpose of a

trust for the payment of debts shall be deemed to be (a) to pay only the
debts of the author of the trust existing and recoverable at the date of
the instrument of trust, or, when such instrument is a will, at the date of
his death, and (b) in the case of debts not bearing interest, to make
such payment without interest.
Illustrations
(a) A, a trustee, is simply authorised to sell certain land by public

auction. He cannot sell the land by private contract.
(b) A, a trustee of certain land for X, Y and Z, is authorised to sell the

land to B for a specified sum. X, Y and Z, being competent to contract,
consent that A may sell the land to C for a less sum. A may sell the
land accordingly.
(c) A, a trustee for B and her children, is directed by the author of the
trust to lend, on B's request, trust-property to B's husband, C, on the
security of his bond. C becomes insolvent and B requests A to make the
loan. A may refuse to make it.
Trustee to inform 12. A trustee is bound to acquaint himself, as soon as possible, with the
himself of state of nature and circumstances of the trust-property; to obtain, where
trust-property necessary, a transfer of the trust-property to himself; and (subject to the
provisions of the instrument of trust) to get in trust-moneys invested on
insufficient or hazardous security.
Illustrations
(a) The trust-property is a debt outstanding on personal security. The

instrument of trust gives the trustee no discretionary power to leave the
debt so outstanding. The trustee's duty is to recover the debt without un-
necessary delay.
(b) The trust-property is money in the hands of one of two co-trustees.

No discretionary power is given by the instrument of trust. The other co-
trustee must not allow the former to retain the money for a longer
period than the circumstances of the case required.
Trustee to protect 13. A trustee is bound to maintain and defend all such suits, and
title to trust- (subject to the provisions of the instrument of trust) to take such other
property steps as, regard being had to the nature and amount or value of the
trust-property, may be reasonably requisite for the preservation of the
trust-property and the assertion or protection of the title thereto.
Illustration
The trust-property is immoveable property which has been given to the

author of the trust by an unregistered instrument. Subject to the
provisions of the 3[ Registration Act, 1908], the trustee's duty is to cause
the instrument to be registered.
Trustee not to set 14. The trustee must not for himself or another set up or aid any title to
up title adverse to the trust-property adverse to the interest of the beneficiary.
beneficiary
Care required from 15. A trustee is bound to deal with the trust-property as carefully as a
trustee man of ordinary prudence would deal with such property if it were his
own; and, in the absence of a contract to the contrary, a trustee so
dealing is not responsible for the loss, destruction or deterioration of the
trust-property.
Illustrations
(a) A, living in Chittagong, is a trustee for B, living in 4[ Dhaka]. A

remits trust-funds to B by bills drawn by a person of undoubted credit in
favour of the trustee as such, and payable at 5[ Dhaka]. The bills are
dis-honoured. A is not bound to make good the loss.
(b) A, a trustee of leasehold property, directs the tenant to pay the rents
on account of the trust to a banker, B, then in credit. The rents are
accordingly paid to B, and A leaves the money with B only till wanted.
Before the money is drawn out, B becomes insolvent. A, having had no
reason to believe that B was in insolvent circumstances, is not bound to
make good the loss.
(c) A, a trustee of two debts for B, releases one and compounds the
other, in good faith, and reasonably believing that it is for B's interest to
do so. A is not bound to make good any loss caused thereby to B.
(d) A, a trustee directed to sell the trust-property by auction, sells the

same, but does not advertise the sale and otherwise fails in reasonable
diligence in inviting competition. A is bound to make good the loss
caused thereby to the beneficiary.
(e) A, a trustee for B, in execution of his trust, sells the trust-property,

but from want of due diligence on his part fails to receive part of the
purchase-money. A is bound to make good the loss thereby caused to B.
(f) A, a trustee for B of a policy of insurance, has funds in hand for

payment of the premiums. A neglects to pay the premiums, and the
policy is consequently forfeited. A is bound to make good the loss to B.
(g) A bequeaths certain moneys to B and C as trustees, and authorizes

them to continue trust-moneys upon the personal security of a certain
firm in which A had himself invested them. A dies, and a change takes
place in the firm. B and C must not permit the moneys to remain upon
the personal security of the new firm.
(h) A, a trustee for B, allows the trust to be executed solely by this co-
trustee, C. C misapplies the trust-property. A is personally answerable for
the loss resulting to B.
Conversion of 16. Where the trust is created for the benefit of several persons in
perishable property succession, and the trust-property is of a wasting nature or a future or
reversionary interest, the trustee is bound, unless an intention to the

contrary may be inferred from the instrument of trust, to convert the
property into property of a permanent and immediately profitable
character.
Illustrations
(a) A bequeaths to B all his property in trust for C during his life, and on
his death for D, and on D's death for E. A's property consists of three
leasehold houses, and there is nothing in A's will to show that he
intended the houses to be enjoyed in specie. B should sell the houses,
and invest the proceeds in accordance with section 20.
(b) A bequeaths to B his three leasehold houses in Chittagong and all the
furniture therein in trust for C during his life, and on his death for D,
and on D's death for E. Here an intention that the houses and furniture
should be enjoyed in specie appears clearly, and B should not sell them.
Trustee to be 17. Where there are more beneficiaries than one, the trustee is bound to
impartial be impartial, and must not execute the trust for the advantage of one at
the expense of another.
Where the trustee has a discretionary power, nothing in this section shall
be deemed to authorise the Court to control the exercise reasonably and
in good faith of such discretion.
Illustration
A, a trustee for B, C and D, is empowered to choose between several

specified modes of investing the trust-property. A in good faith chooses
one of the these modes. The Court will not interfere, although the result
of the choice may be to vary the relative rights of B, C and D.
Trustee to prevent 18. Where the trust is created for the benefit of several persons in
waste succession and one of them is in possession of the trust-property, if he
commits, or threatens to commit, any act which is destructive or
permanently injurious thereto, the trustee is bound to take measures to
prevent such act.
Accounts and 19. A trustee is bound (a) to keep clear and accurate accounts of the
information trust-property, and (b), at all reasonable times, at the request of the
beneficiary, to furnish him with full and accurate information as to the
amount and state of the trust-property.
Investment of 20. Where the trust-property consists of money and cannot be applied
trust-money 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, debentures, stock or other securities 6[ of the

Government]:
Provided that securities, both the principal whereof and the interest
whereon shall have been fully and un-conditionally guaranteed by 7[ the]
Government, shall be deemed, for the purposes of this clause, to be
securities of 8[ the] Government;
9[ * * *]
10[(c) in stock or debentures of, or shares in, Companies the interest

whereon shall have been guaranteed by the Government:
(d) in debenture or other securities for money issued under the authority
of any Bangladesh Act, or on behalf of any municipal body or port trust
or city improvement trust: ]
(e) on a first mortgage of immoveable property situate in 11[

Bangladesh]: Provided that the property is not a leasehold for a term of
years and that the value of the property exceeds by one-third, or, if
consisting of buildings, exceeds by one-half, the mortgage-money; or
(f) on any other security expressly authorised by the instrument of trust,

or by any rule which the 12[ Supreme Court] may from time to time
prescribe in this behalf:
Provided that, where there is a person competent to contract and entitled

in possession to receive the income of the trust-property for his life, or
for any greater estate, no investment on any security mentioned or
referred to in clauses (d), (e), and (f) shall be made without his consent
in writing.
Power to purchase 13[ 20A.(1) A trustee may invest in any of the securities mentioned or
redeemable stock
at a premium
referred to in section 20, notwithstanding that the same may be
redeemable and that the price exceeds the redemption value:
Provided that a trustee may not purchase at a price exceeding its

redemption value any security mentioned or referred to in clauses (c) and
(d) of section 20 which is liable to be redeemed within fifteen years of
the date of purchase at par or at some other fixed rate, or purchase any
such security as is mentioned or referred to in the said clauses which is
liable to be redeemed at par or at some other fixed rate at a price
exceeding fifteen per centum above par or such other fixed rate.
(2) A trustee may retain until redemption any redeemable stock, fund or
security which may have been purchased in accordance with this section.]
Investment of 14[ 20B. (1) Where the trust property comprises money and it cannot be
trust-money in
company securities
applied immediately to the purposes of the trust, the trustee may,
subject to any prohibition or restriction imposed in the instrument of
trust, invest an amount not exceeding 25% of such money, hereinafter
referred to in this section as the maximum limit of investment, in any
security listed with a stock exchange of Bangladesh.
(2) In determining the exact amount of money that may be invested

under sub-section (1) at any given time, the money already invested, if
any, under this section and also under 20(f) shall be deducted from the
maximum limit of investment at that time.
(3) Nothing in this section shall be construed to be a bar to authorise the

investment of trust-money by the author of the trust beyond the
maximum limit of investment.]
Deposit in 21. Nothing in section 20 shall apply to 15[ * * *] in case the trust-
Government
Savings Bank
money does not exceed three thousand taka a deposit thereof in a
Government Savings Bank.
Sale by trustee 22. Where a trustee directed to sell within a specified time extends such
directed to sell time, the burden of proving, as between himself and the beneficiary, that
within specified the latter is not prejudiced by the extension lies upon the trustee, unless
time
the extension has been authorised by a principal Civil Court of original
jurisdiction.
Illustration
A bequeaths property to B, directing him with all convenient speed and

within five years to sell it, and apply the proceeds for the benefit of C.
In the exercise of reasonable discretion, B postpones the sale for six
years. The sale is not thereby rendered invalid, but C, alleging that he
has been injured by the postponement, institutes a suit against B to
obtain compensation. In such suit the burden of proving that C has not
been injured lies on B.
Liability for breach 23. Where the trustee commits a breach of trust, he is liable to make
of trust 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 or undue influence having been brought to bear
on him, concurred in the breach, or subsequently acquiesced therein, with
full knowledge of the facts of the case and of his right as against the
trustee.
A trustee committing a breach of trust is not liable to pay interest except

in the following cases:-
(a) where he has actually received interest:
(b) where the breach consists in unreasonable delay in paying trust-

money to the beneficiary:
(c) where the trustee ought to have received interest, but has not done
so:
(d) where he may be fairly presumed to have received interest.
He is liable, in case (a), to account for the interest actually received,

and, in cases (b), (c) and (d), to account for simple interest at the rate
of six per cent. per annum, unless Court otherwise directs.
(e) where the breach consists in failure to invest trust-money and to

accumulate the interest or dividends thereon, he is liable to account for
compound interest (with half-yearly rests) at the same rate.
(f) where the breach consists in the employment of trust-property or the

proceeds thereof in trade or business, he is liable to account, at the
option of the beneficiary, either for compound interest (with half-yearly
rests) at the same rate, or for the net profits made by such employment.
Illustrations
(a) A trustee improperly leaves trust-property outstanding, and it is

consequently lost: he is liable to make good the property lost, but he is
not liable to pay interest thereon.
(b) A bequeaths a house to B in trust to sell it and pay the proceeds to

C. B neglects to sell the house for a great length of time, whereby the
house is deteriorated and its market price falls. B is answerable to C for
the loss.
(c) A trustee is guilty of unreasonable delay in investing trust-money in

accordance with section 20, or in paying it to the beneficiary. The trustee
is liable to pay interest thereon for the period of the delay.
(d) The duty of the trustee is to invest trust-money in any of the

securities mentioned in section 20, clause (a), (b), (c) or (d). Instead of
so doing he retains the money in his hands. He is liable, at the option of
the beneficiary, to be charged either with the amount of the principal

money and interest, or with the amount of such securities as he might
have purchased with the trust-money when the investment should have
been made, and the intermediate dividends and interest thereon.
(e) The instrument of trust directs the trustee to invest trust-money

either in any such securities or on mortgage of immoveable property. The
trustee does neither. He is liable for the principal money and interest.
(f) The instrument of trust directs the trustee to invest trust-money in

any of such securities and to accumulate the dividends thereon. the
trustee disregards the direction. He is liable, at the option of the
beneficiary, to be charged either with the amount of the principal money
and compound interest, or with the amount of such securities as he
might have purchased with the trust-money when the investment should
have been made, together with the amount of the accumulation which
would have arisen from a proper investment of the intermediate
dividends.
(g) Trust-property is invested in one of the securities mentioned in

section 20, clause (a), (b), (c) or (d). The trustee sells such security for
some purpose not authorised by the terms of the instrument of trust. He
is liable, at the option of the beneficiary, either to replace the security
with the intermediate dividends and interest thereon, or to account for
the proceeds of the sale with interest thereon.
(h) The trust-property consists of land. The trustee sells the land to a
purchaser for a consideration without notice of the trust. The trustee is
liable, at the option of the beneficiary, to purchase other land of equal
value to be settled upon the like trust, or to be charged with the
proceeds of the sale with interest.
No set-off allowed 24. A trustee who is liable for a loss occasioned by a breach of trust in
to trustee 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.
Non-liability for 25. Where a trustee succeeds another, he is not, as such, liable for the
predecessor’s acts or defaults of his predecessor.
default
Non-liability for co- 26. Subject to the provisions of sections 13 and 15, one trustee is not,
trustee’s default 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 trust-property to his co-trustee without seeing

to its proper application:
(b) where he allows his co-trustee to receive trust-property and fails to

make due enquiry as to the co-trustee's dealing therewith or allows him
to retain it longer than the circumstances of the case reasonably require:
(c) where he becomes aware of a breach of trust committed or intended

by his co-trustee, and either actively conceals it or does not within a
reasonable time take proper steps to protect the beneficiary's interest.
Joining in receipt A co-trustee who joins in signing a receipt for trust-property and proves
for conformity that he has not received the same is not answerable, by reason of such
signature only, for loss or misapplication of the property by his co-
trustee.
Illustration
A bequeaths certain property to B and C, and directs them to sell it and

invest the proceeds for the benefit of D. B and C accordingly sell the
property, and the purchase-money is received by B and retained in his
hands. C pays no attention to the matter for two years, and then calls
on B to make the investment. B is unable to do so, becomes insolvent,
and the purchase-money is lost. C may be compelled to make good the
amount.
Several liability of 27. Where co-trustees jointly commit a breach of trust, or where one of
co-trustees 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 But as between the trustees themselves, if one be less guilty than
between co- another and has had to refund the loss, the former may compel the
trustees latter, or his legal representative to the extent of the assets he has
received, to make good such loss; and, if all be equally guilty, any one
or more of the trustees who has had to refund the loss may compel the
others to contribute.
Nothing in this section shall be deemed to authorise a trustee who has

been guilty of fraud to institute a suit to compel contribution.
Non-liability of 28. When any beneficiary's interest becomes vested in another person,
trustee paying and the trustee, not having notice of the vesting, pays or delivers trust-
without notice of property to the person who would have been entitled thereto in the
transfer by
beneficiary
absence of such vesting, the trustee is not liable for the property so paid
or delivered.
Liability of trustee 29. When the beneficiary's interest is forfeited or awarded by legal
where beneficiary’s adjudication to the Government, the trustee is bound to hold the trust-
interest is forfeited property to the extent of such interest for the benefit of such person in
to the Government
such manner as the Government may direct in this behalf.
Indemnity of 30. Subject to the provisions of the instrument of trust and of sections
trustees 23 and 26, trustees shall be respectively chargeable only for such
moneys, stocks, funds and securities as they respectively actually receive
and shall not be answerable the one for the other of them, nor for any
banker, broker or other person in whose hands any trust-property may
be placed, nor for the insufficiency or deficiency of any stocks, funds or
securities, nor otherwise for involuntary losses.
CHAPTER IV
OF THE RIGHTS AND POWERS OF TRUSTEES
Right to title-deed 31. A trustee is entitled to have in his possession the instrument of trust
and all the documents of title (if any) relating solely to the trust-
property.
Right to 32. Every trustee may reimburse himself, or pay or discharge out of the
reimbursement of trust-property, all expenses properly incurred in or about the execution of
expenses the trust, or the realisation, preservation or benefit of the trust-property,
or the protection or support of the beneficiary.
If he pays such expenses out of his own pocket, he has a first charge
upon the trust-property for such expenses and interest thereon; but such
charge (unless the expenses have been incurred with the sanction of a
principal Civil Court of original jurisdiction) shall be enforced only by
prohibiting any disposition of the trust-property without previous payment
of such expenses and interest.
If the trust-property fail, the trustee is entitled to recover from the

beneficiary personally on whose behalf he acted, and at whose request,
expressed or implied, he made the payment, the amount of such
expenses.
Right to be Where a trustee has by mistake made an over-payment to the
recouped for beneficiary, he may reimburse the trust-property out of the beneficiary's
erroneous interest. If such interest fail, the trustee is entitled to recover from the
overpayment beneficiary personally the amount of such over-payment.
Right to indemnity 33. A person other than a trustee who has gained an advantage from a
from gainer by breach of trust must indemnify the trustee to the extent of the amount
breach of trust actually received by such person under the breach; and where he is a
beneficiary the trustee has a charge on his interest for such amount.
Nothing in this section shall be deemed to entitle a trustee to be

indemnified who has, in committing the breach of trust, been guilty of
fraud.
Right to apply to 34. Any trustee may, without instituting a suit, apply by petition to a
Court for opinion in principal Civil Court of original jurisdiction for its opinion, advice or
management of direction on any present questions respecting the management or
trust-property
administration of the trust-property other than questions of detail,
difficulty or importance, not proper in the opinion of the Court for
summary disposal.
A copy of such petition shall be served upon, and the hearing thereof
may be attended by, such of the persons interested in the application as
the Court thinks fit.
The trustee stating in good faith the facts in such petition and acting
upon the opinion, advice or direction given by the Court shall be deemed,
so far as regards his own responsibility, to have discharged his duty as
such trustee in the subject-matter of the application.
The costs of every application under this section shall be in the discretion
of the Court to which it is made.
Right to settlement 35. When the duties of a trustee, as such, are completed, he is entitled
of accounts to have the accounts of his administration of the trust-property examined
and settled; and, where nothing is due to the beneficiary under the trust,
to an acknowledgement in writing to that effect.
General authority 36. In addition to the powers expressly conferred by this Act and by the
of trustee instrument of trust, and subject to the restrictions, if any, contained in
such instrument, and to the provisions of section 17, a trustee may do
all acts which are reasonable and proper for the realisation, protection or
benefit of the trust-property, and for the protection or support of a
beneficiary who is not competent to contract.
Except with the permission of a principal Civil Court of original

jurisdiction, no trustee shall lease trust-property for a term exceeding
twenty-one years from the date of executing the lease, nor without
reserving the best yearly rent that can be reasonably obtained.
Power to sell in 37. Where the trustee is empowered to sell any trust-property, he may
lots, and either by sell the same subject to prior charges or not, and either together or in
public auction or lots, by public auction or private contract, and either at one time or at
private contract
several times, unless the instrument of trust otherwise directs.
Power to sell under 38. The trustee making any such sale may insert such reasonable
special conditions stipulations either as to title or evidence of title, or otherwise, in any
Power to buy in and conditions of sale or contract for sale, as he thinks fit; and may also buy
re-sell
in the property or any part thereof at any sale by auction, and rescind or
vary any contract for sale, and re-sell the property so bought in, or as to
which the contract is so rescinded, without being responsible to the
beneficiary for any loss occasioned thereby.
Time allowed for Where a trustee is directed to sell trust-property or to invest trust-money
selling trust- in the purchase of property, he may exercise a reasonable discretion as
property to the time of effecting the sale or purchase.
Illustrations
(a) A bequeaths property to B, directing him to sell it with all convenient

speed and pay the proceeds to C. This does not render an immediate
sale imperative.
(b) A bequeaths property to B, directing him to sell it at such time and

in such manner as he shall think fit and invest the proceeds for the
benefit of C. This does not authorise B, as between him and C, to
postpone the sale to an indefinite period.
Power to convey 39. For the purpose of completing any such sale, the trustee shall have
power to convey or otherwise dispose of the property sold in such
manner as may be necessary.
Power to vary 40. A trustee may, at his discretion, call in any trust-property invested in
investments any security and invest the same on any of the securities mentioned or
referred to in section 20, and from time to time vary any such
investments for others of the same nature:
Provided that, where there is a person competent to contract and entitled

at the time to receive the income of the trust-property for his life, or for
any greater estate, no such change of investment shall be made without
his consent in writing.
Power to apply 41. Where any property is held by a trustee in trust for a minor, such
property of minors, trustee may, at his discretion, pay to the guardians (if any) of such
etc, for their minor, or otherwise apply for or towards his maintenance or education or
maintenance, etc
advancement in life, or the reasonable expenses of his religious worship,
marriage or funeral, the whole or any part of the income to which he
may be entitled in respect of such property; and such trustee shall
accumulate all the residue of such income by way of compound interest
by investing the same and the resulting income thereof from time to time
in any of the securities mentioned or referred to in section 20, for the
benefit of the person who shall ultimately become entitled to the property
from which such accumulations have arisen:
Provided that such trustee may, at any time, if he thinks fit, apply the
whole or any part of such accumulations as if the same were part of the
income arising in the then current year.
Where the income of the trust-property is insufficient for the minor's

maintenance or education or advancement in life, or the reasonable
expenses of his religious worship, marriage or funeral, the trustee may,
with the permission of a principal Civil Court of original jurisdiction, but
not otherwise, apply the whole or any part of such property for or
towards such maintenance, education, advancement or expenses.
Nothing in this section shall be deemed to affect the provisions of any

local law for the time being in force relating to the persons and property
of minors.
Power to give 42. Any trustees or trustee may give a receipt in writing for any money,
receipts securities or other moveable property payable, transferable or deliverable
to them or him by reason, or in the exercise, of any trust or power; and,
in the absence of fraud, such receipt shall discharge the person paying,
transferring or delivering the same therefrom, and from seeing to the
application thereof, or being accountable for any loss or misapplication
thereof.
Power to 43. Two or more trustee acting together may, if and as they think fit,-
compound, etc
(a) accept any composition or any security for any debt or for any
property claimed;
(b) allow any time for payment of any debt;
(c) compromise, compound, abandon, submit to arbitration or otherwise

settle any debt, account, claim or thing whatever relating to the trust;
and,
(d) for any of those purposes, enter into, give, execute and do such
agreements, instruments of composition or arrangement, releases and
other things as to them seem expedient, without being responsible for
any loss occasioned by any act or thing so done by them in good faith.
The powers conferred by this section on two or more trustees acting

together may be exercised by a sole acting trustee when by the
instrument of trust, if any, a sole trustee is authorised to execute the
trusts and powers thereof.
This section applies only if and as far as a contrary intention is not

expressed in the instrument of trust, if any, and shall have effect subject
to the terms of that instrument and to the provisions therein contained.
This section applies only to trusts created after this Act comes into force.
Power to several 44. When an authority to deal with the trust-property is given to several
trustees of whom trustees and one of them disclaims or dies, the authority may be
one disclaims or exercised by the continuing trustees, unless from the terms of the
dies
instrument of trust it is apparent that the authority is to be exercised by
a number in excess of the number of the remaining trustees.
Suspension of 45. Where a decree has been made in a suit for the execution of a trust,
trustee’s powers by the trustee must not exercise any of his powers except in conformity with
decree such decree, or with the sanction of the Court by which the decree has
been made, or, where an appeal against the decree is pending, of the
Appellate Court.
CHAPTER V
OF THE DISABILITIES OF TRUSTEES
Trustee cannot 46. A trustee who has accepted the trust cannot afterwards renounce it
renounce after except (a) with the permission of a principal Civil Court of original
acceptance jurisdiction, or (b) if the beneficiary is competent to contract, with his
consent, or (c) by virtue of a special power in the instrument of trust.
Trustee cannot 47. A trustee cannot delegate his office or any of his duties either to a
delegate co-trustee or to a stranger, unless (a) the instrument of trust so
provides, or (b) the delegation is in the regular course of business, or (c)
the delegation is necessary, or (d) the beneficiary, being competent to
contract, consents to the delegation.
Explanation - The appointment of an attorney or proxy to do an act

merely ministerial and involving no independent discretion is not a
delegation within the meaning of this section.
Illustrations
(a) A bequeaths certain property to B and C on certain trusts to be

executed by them or the survivor of them or the assigns of such
survivor. B dies. C may bequeath the trust-property to D and E upon the
trusts of A's will.
(b) A is a trustee of certain property with power to sell the same. A may
employ an auctioneer to effect the sale.
(c) A bequeaths to B fifty houses let at monthly rents in trust to collect

the rents and pay them to C. B may employ a proper person to collect
these rents.
Co-trustees cannot 48. When there are more trustees than one, all must join in the
act singly execution of the trust, except where the instrument of trust otherwise
provides.
Control of 49. Where a discretionary power conferred on a trustee is not exercised

discretionary power reasonably and in good faith, such power may be controlled by a
principal Civil Court of original jurisdiction.
Trustee may not 50. In the absence of express directions to the contrary contained in the
charge for services instrument of trust or of a contract to the contrary entered into with the
beneficiary or the Court at the time of accepting the trust, a trustee has
no right to remuneration for his trouble, skill and loss of time in
executing the trust.
Nothing in this section applies to any Official Trustee, Administrator-

General, Public Curator or person holding a certificate of administration.
Trustee may not 51. No trustee may not use or deal with the trust-property for his own
use trust-property profit or for any other purpose unconnected with the trust.
for his own profit
Trustee for sale or 52. No trustee whose duty it is to sell trust-property, and no agent
his agent may not employed by such trustee for the purpose of the sale, may, directly or
buy indirectly, buy the same or any interest therein, on his own account or
as agent for a third person.
Trustee may not 53. No trustee, and no person who has recently ceased to be a trustee,
buy beneficiary’s may, without the permission of a principal Civil Court of original
interest without jurisdiction, buy or become mortgagee or lessee of the trust-property or
permission
any part thereof; and such permission shall not be given unless the
proposed purchase, mortgage or lease is manifestly for the advantage of
the beneficiary.
Trustee for And no trustee whose duty it is to buy or to obtain a mortgage or lease
purchase or particular property for the beneficiary may buy it, or any part thereof,
or obtain a mortgage or lease of it, or any part thereof, for himself.
Co-trustees may 54. A trustee or co-trustee whose duty it is to invest trust-money on

not lend to one of mortgage or personal security must not invest it on mortgage by, or on
themselves the personal security of, himself or one of his co-trustees.
CHAPTER VI
OF THE RIGHTS AND LIABILITIES OF THE BENEFICIARY
Rights to rents and 55. The beneficiary has, subject to the provisions of the instrument of
profits trust, a right to the rents and profits of the trust-property.
Right to specific 56. The beneficiary is entitled to have the intention of the author of the
execution trust specifically executed to the extent of the beneficiary's interest;
Right to transfer of and, where there is only one beneficiary and he is competent to contract,
possession or where there are several beneficiaries and they are competent to
contract and all of one mind, he or they may require the trustee to
transfer the trust-property to him or them, or to such person as he or
they may direct.
When property has been transferred or bequeathed for the benefit of a

married woman, so that she shall not have power to deprive herself of
her beneficial interest, nothing in the second clause of this section applies
to such property during her marriage.
Illustrations
(a) Certain Government securities are given to trustees upon trust to

accumulate the interest until A attains the age of 24, and then to
transfer the gross amount to him. A on attaining majority may, as the
person exclusively interested in the trust-property, require the trustees to
transfer it immediately to him.
(b) A bequeaths Tk. 10,000 to trustees upon trust to purchase an

annuity for B, who has attained his majority and is otherwise competent
to contract. B may claim the Tk. 10,000.
(c) A transfers certain property to B and directs him to sell or invest it

for the benefit of C, who is competent to contract. C may elect to take
the property in its original character.
Right to inspect 57. The beneficiary has a right, as against the trustee and all persons
and take copies of claiming under him with notice of the trust, to inspect and take copies of
instrument of trust the instrument of trust, the documents of title relating solely to the trust-
accounts, etc
property, the accounts of the trust-property and the vouchers (if any) by
which they are supported, and the cases submitted and opinions taken by
the trustee for his guidance in the discharge of his duty.
Right to transfer 58. The beneficiary, if competent to contract, may transfer his interest,
beneficial interest but subject to the law for the time being in force as to the circumstances
and extent in and to which he may dispose of such interest:
Provided that when property is transferred or bequeathed for the benefit

of a married woman, so that she shall not have power to deprive herself
of her beneficial interest, nothing in this section shall authorise her to
transfer such interest during her marriage.
Right to sue for 59. Where no trustees are appointed or all the trustees die, disclaim, or
execution of trust are discharged, or where for any other reason the execution of a trust by
the trustee is or becomes impracticable, the beneficiary may institute a
suit for the execution of the trust, and the trust shall, so far as may be
possible, be executed by the Court until the appointment of a trustee or
new trustee.
Right to proper 60. The beneficiary has a right (subject to the provisions of the
trustees instrument of trust) that the trust-property shall be properly protected
and held and administered by proper persons and by a proper number of
such persons.
Explanation I - The following are not proper persons within the meaning
of this section:-
A person domiciled abroad: an alien enemy: a person having an interest

inconsistent with that of the beneficiary: a person in insolvent
circumstances; and, unless the personal law of the beneficiary allows
otherwise, a married woman and a minor.
Explanation II - When the administration of the trust involves the

receipt and custody of money, the number of trustees should be two at
least.
Illustrations
(a) A, one of several beneficiaries, proves that B, the trustee, has

improperly disposed of part of the trust-property, or that the property is
in danger from B's being in insolvent circumstances, or that he is
incapacitated from acting as trustee. A may obtain a receiver of the
trust-property.
(b) A bequeaths certain jewels to B in trust for C. B dies during A's life
time; then A dies. C is entitled to have the property conveyed to a
trustee for him.
(c) A conveys certain property to four trustees in trust for B. Three of

the trustee die. B may institute a suit to have three new trustees
appointed in the place of the deceased trustees.
(d) A conveys certain property to three trustees in trust for B. All the
trustees disclaim. B may institute a suit to have three trustees appointed
in place of the trustees so disclaiming.
(e) A, a trustee for B, refuses to act, or goes to reside permanently out

of Bangladesh or is declared an insolvent, or compounds with his
creditors, or suffers a co-trustee to commit a breach of trust. B may
institute a suit to have A removed and a new trustee appointed in his
room.
Right to compel to 61. The beneficiary has a right that his trustee shall be compelled to
any act of duty perform any particular act of his duty as such, and restrained from
committing any contemplated or probable breach of trust.
Illustrations
(a) A contracts with B to pay him monthly Tk. 100 for the benefit of C.
B writes and signs a letter declaring that he will hold in trust for C the
money so to be paid. A fails to pay the money in accordance with his
contract. C may compel B on a proper indemnity to allow C to sue on
the contract in B's name.
(b) A is trustee of certain land, with a power to sell the same and pay
the proceeds to B and C equally. A is about to make an improvident sale
of the land. B may sue on behalf of himself and C for an injunction to
restrain A from making the sale.
Wrongful purchase 62. Where a trustee has wrongfully bought trust-property, the beneficiary
by trustee has a right to have the property declared subject to the trust or
retransferred by the trustee, if it remains in his hands unsold, or, if it
has been bought from him by any person with notice or the trust, by
such person. But in such case the beneficiary must repay the purchase-
money paid by the trustee, with interest, and such other expenses (if
any) as he has properly incurred in the preservation of the property; and
the trustee or purchaser must (a) account for the net profits of the
property, (b) be charged with an occupation-rent, if he has been in
actual possession of the property, and (c) allow the
beneficiary to deduct a proportionate part of the purchase-money if the

property has been deteriorated by the acts or omissions of the trustee or
purchaser.
Nothing in this section-
(a) impairs the rights of lessees and others who, before the institution of
a suit to have the property declared subject to the trust or retransferred,
have contracted in good faith with the trustee or purchaser; or
(b) entitles the beneficiary to have the property declared subject to the
trust or retransferred where he, being competent to contract, has himself,
without coercion or undue influence having been brought to bear on him,
ratified the sale to the trustee with full knowledge of the facts of the
case and of his rights as against the trustee.
Following trust- 63. Where trust-property comes into the hands of a third person
property- into the
hands of third inconsistently with the trust, the beneficiary may require him to admit
persons; into that formally, or may institute a suit for a declaration, that the property is
into which it has comprised in the trust.
been converted
Where the trustee has disposed of trust-property and the money or other
property which he has received therefor can be traced in his hands, or
the hands of his legal representative or legatee, the beneficiary has, in
respect thereof, rights as merely as may be the same as his rights in
respect of the original trust-property.
Illustrations
(a) A, a trustee for B of Tk. 10,000, wrongfully invests Tk. 10,000 in the
purchase of certain land.. B is entitled to the land.
(b) A, a trustee, wrongfully purchases land in his own name, partly with
his own money, partly with money subject to a trust for B. B is entitled
to a charge on the land for the amount of the trust-money so
misemployed.
Saving of rights of 64. Nothing in section 63 entitles the beneficiary to any right in respect
certain transferees of property in the hands of-
(a) a transferee in good faith for consideration without having notice of

the trust, either when the purchase-money was paid, or when the
conveyance was executed, or
(b) a transferee for consideration from such a transferee.
A judgment-creditor of the trustee attaching and purchasing trust-property

is not a transferee for consideration within the meaning of this section.
Nothing in section 63 applies to money, currency notes and negotiable

instruments in the hands of a bona fide holder to whom they have
passed in circulation, or shall be deemed to effect the Contract Act,
1872, section 108, or the liability of a person to whom a debt or charge
is transferred.
Acquisition by 65. Where a trustee wrongfully sells or otherwise transfers trust-property

trustee of trust- and after wards himself becomes the owner of the property, the property
property wrongfully
converted
again becomes subject to the trust, notwithstanding any want of notice

on the part of intervening transferees in good faith for consideration.
Right in case of 66. Where the trustee wrongfully mingles the trust-property with his own,
blended property the beneficiary is entitled to a charge on the whole fund for the amount
due to him.
Wrongful 67. If a partner, being a trustee, wrongfully employs trust-property in the

employment by business, or on the account of the partnership, no other partner is liable
partner-trustee of therefor in his personal capacity to the beneficiaries, unless he had notice
trust-property for
partnership
of the breach of trust.
purposes
The partners having such notice are jointly and severally liable for the
breach of trust.
Illustrations
(a) A and B are partners. A dies, having bequeathed all his property B in
trust for Z, and appointed B his sole executor. B instead of winding up
the affairs of the partnership, retains all the assets in the business. Z
may compel him, as partner, to account for so much of the profits as are
derived from A's share of the capital. B is also answerable to Z for the
improper employment of A's assets.
(b) A, a trader, bequeaths his property to B in trust for C, appoints B his

sole executor, and dies. B enters into partnership with X and Y in the
same trade, and employs A's assets in the partnership-business. B gives
an indemnity to X and Y against the claims of C. Here X and Y are
jointly liable with B to C as having knowingly become parties to the
breach of trust committed by B.
Liability of 68. Where one of several beneficiaries-

beneficiary joining
in breach of trust
(a) joins in committing breach of trust, or
(b) knowingly obtains any advantage therefrom, without the consent of

the other beneficiaries, or
(c) becomes aware of a breach of trust committed or intended to be

committed, and either actually conceals it, or does not within a
reasonable time take proper steps to protect the interests of the other
beneficiaries, or
(d) has deceived the trustee and thereby induced him to commit a
breach of trust,
the other beneficiaries are entitled to have all his beneficial interest
impounded as against him and all who claim under him (otherwise than
as transferees for consideration without notice of the breach) until the
loss caused by the breach has been compensated.
When property has been transferred or bequeathed for the benefit of a

married woman, so that she shall not have power to deprive herself of
her beneficial interest, nothing in this section applies to such property
during her marriage.
Rights and 69. Every person to whom a beneficiary transfers his interest has the
liabilities of rights, and is subject to the liabilities, of the beneficiary in respect of
beneficiary’s such interest at the date of the transfer.
transferee
CHAPTER VII
OF VACATING THE OFFICE OF TRUSTEE
Office how vacated 70. The office of a trustee is vacated by his death or by his discharge
from his office.
Discharge of 71. The trustee may be discharged from his office only as follows:-
trustees
(a) by the extinction of the trust;
(b) by the completion of his duties under the trust;
(c) by such means as may be prescribed by the instrument of trust;
(d) by appointment under this Act of a new trustee in his place;
(e) by consent of himself and the beneficiary, or, where there are more
beneficiaries than one, all the beneficiaries than one, all the beneficiaries
being competent to contract, or
(f) by the Court to which a petition for his discharge is presented under
this Act.
Petition to be 72. Notwithstanding the provisions of section 11, every trustee may apply
discharged from by petition to a principal Civil Court of original jurisdiction to be
trust discharged from his office; and, if the Court finds that there is sufficient
reason for such discharge, it may discharge him accordingly, and direct
his costs to be paid out of the trust-property. But, where there is no
such reason, the Court shall not discharge him, unless a proper person
can be found to take his place.
Appointment of 73. Whenever any person appointed a trustee disclaims, or any trustee,
new trustees on either original or substituted dies, or is for a continues period of six
death, etc months absent from Bangladesh, or leaves Bangladesh for the purpose of
residing abroad, or is declared an insolvent, or desires to be discharged
from the trust, or refuses or becomes, in the opinion of a principal Civil
Court of original jurisdiction, unfit or personally incapable to act in the
trust, or accepts an inconsistent trust, a new trustee may be appointed in
his place by-
(a) the person nominated for that purpose by the instrument of trust (if
any), or.
(b) if there be no such person, or no such person able and willing to act,
the author of the trust if he be alive and competent to contract, or the
surviving or continuing trustees or trustee for time being, or legal
representative of the last surviving and continuing trustee, or (with the
consent of the Court) the retiring trustees, if they all retire
simultaneously, or (with the like consent) the last retiring trustee.
Every such appointment shall be by writing under the hand of the person
making it.
On an appointment of a new trustee the number of trustees may be

increased.
The Official Trustee may, with his consent and by the order of the Court,
be appointed under this section, in any case in which only one trustee is
to be appointed and such trustee is to be the sole trustee.
The provisions of this section relative to a trustee who is dead include

the case of a person nominated trustee in a will but dying before the
testator, and those relative to a continuing trustee include a refusing or
retiring trustee if willing to act in the execution of the power.
Appointment by 74. Whenever any such vacancy or disqualification occurs and it is found
Court impracticable to appoint a new trustee under section 73, the beneficiary
may, without instituting a suit, apply by petition to a principal Civil Court
of original jurisdiction for the appointment of a trustee or a new trustee,
and the Court may appoint a trustee or a new trustee accordingly.
Rules for selecting In appointing new trustees, the Court shall have regard (a) to the wishes
new trustees of the author of the trust as expressed in or to be inferred from the
instrument of trust; (b) to the wishes of the person, if any, empowered
to appoint new trustees; (c) to the question whether the appointment will
promote or impede the execution of the trust; and (d) where there are
more beneficiaries than one, to the interests of all such beneficiaries.
Vesting of trust- 75. Whenever any new trustee is appointed under section 73 or section
property in new 74, all the trust-property for the time being vested in the surviving or
trustees continuing trustees or trustee, or in the legal representative of any
trustee, shall become vested in such new trustee, either solely or jointly
with the surviving or continuing trustees or trustee, as the case may
require.
Powers of new Every new trustee so appointed, and every trustee appointed by a Court,
trustees either before or after the passing of this Act, shall have the same
powers, authorities and discretions, and shall in all respects act, as if he
had been originally nominated a trustee by the author of the trust.
Survival of trust 76. On the death or discharge of one of several co-trustees, the trust
survives and the trust-property passes to the others, unless the
instrument of trust expressly declares otherwise.
CHAPTER VIII
OF THE EXTINCTION OF TRUSTS
77. A trust is extinguished,-
(a) when its purpose is completely fulfilled; or
(b) when its purpose becomes unlawful; or
(c) when the fulfilment of its purpose becomes impossible by destruction

of the trust-property or otherwise; or
(d) when the trust, being revocable, is expressly, revoked.
78. A trust created by will may be revoked at the pleasure of the

testator.
A trust otherwise created can be revoked only-
(a) where all the beneficiaries are competent to contract - by their

consent;
(b) where the trust has been declared by a non-testamentary instrument

or by word of mouth - in exercise of a power of revocation expressly
reserved to the author of the trust; or
(c) where the trust is for the payment of the debts of the author of the
trust, and hgas not been communicated to the creditors - at the pleasure
of the author of the trust.
Illustration
A conveys property to B in trust to sell the same and pay out of the
proceeds the claims of A's creditors. A reserves no power of revocation.
If no communication has been made to the creditors, A may revoke the
trust. But if the creditors are parties to the arrangement, the trust cannot
be revoked without their consent.
79. No trust can be revoked by the author of the trust so as to defeat or

prejudice what the trustees may have duly done in execution of the trust.
CHAPTER VIII
OF THE EXTINCTION OF TRUSTS
Trust how 77. A trust is extinguished,-

extinguished
(a) when its purpose is completely fulfilled; or
(b) when its purpose becomes unlawful; or
(c) when the fulfilment of its purpose becomes impossible by destruction

of the trust-property or otherwise; or
(d) when the trust, being revocable, is expressly, revoked.
Revocation of trust 78. A trust created by will may be revoked at the pleasure of the
testator.
A trust otherwise created can be revoked only-
(a) where all the beneficiaries are competent to contract - by their

consent;
(b) where the trust has been declared by a non-testamentary instrument

or by word of mouth - in exercise of a power of revocation expressly
reserved to the author of the trust; or
(c) where the trust is for the payment of the debts of the author of the
trust, and hgas not been communicated to the creditors - at the pleasure
of the author of the trust.
Illustration
A conveys property to B in trust to sell the same and pay out of the
proceeds the claims of A's creditors. A reserves no power of revocation.
If no communication has been made to the creditors, A may revoke the
trust. But if the creditors are parties to the arrangement, the trust cannot
be revoked without their consent.
Revocation not to 79. No trust can be revoked by the author of the trust so as to defeat or
defeat what prejudice what the trustees may have duly done in execution of the trust.
trustees have duly
done
CHAPTER IX
OF CERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS
Where obligation in 80. An obligation in the nature of a trust is created in the following
nature of trust is cases.
created
Where it does not 81. Where the owner of property transfers or bequeaths it and it cannot
appear that be inferred consistently with the attendant circumstances that he intended
transferor intended to dispose of the beneficial interest therein, the transferee or legatee
to dispose of
beneficial interest
must hold such property for the benefit of the owner or his legal
representative.
Illustration
(a) A conveys land to B without consideration and declares no trust of

any part. It cannot, consistently with the circumstances under which the
transfer is made, be inferred that A intended to transfer the beneficial
interest in the land. B holds the land for the benefit of A.
(b) A conveys to B two fields, Y and Z, and declares a trust of Y, but

says nothing about Z. It cannot, consistently with the circumstances
under which the transfer is made, be inferred that A intended to transfer
the beneficial interest in Z. B holds Z for the benefit of A.
(c) A transfers certain stock belonging to him into the joint names of
himself and B. It cannot, consistently with the circumstances under which
the transfer is made, be inferred that A intended to transfer the
beneficial interest in the stock during his life. A and B hold the stock for
the benefit of A during his life.
(d) A makes a gift of certain land to his wife B. She takes the beneficial
interest in the land free from any trust in favour of A, for it may be
inferred from the circumstances that the gift was for B's benefit.
Transfer to one for 82. Where property is transferred to one person for a consideration paid
consideration paid or provided by another person, and it appears that such other person did
by another not intend to pay or provide such consideration for the benefit of the
transferee, the transferee must hold the property for the benefit of the
person paying or provided the consideration.
16[ * * *]
Trust incapable of 83. Where a trust is incapable of being executed, or where the trust is
execution or completely executed without exhausting the trust-property, the trustee, in
executed without the absence of a direction to the contrary, must hold the trust-property,
exhausting trust-
property
or so much thereof as is unexhausted, for the benefit of the author of
the trust or his legal representative.
Illustrations
(a) A conveys certain land to B-
“upon trust”, and no trust is declared; or
“upon trust to be thereafter declared,” and no such declaration is ever

made; or
upon trusts that are too vague to be executed; or
upon trusts that become incapable of taking effect; or
“in trusts for C,” and C renounces his interest under the trust.
In each of these cases B holds the land for the benefit of A.
(b) A transfers Tk. 10,000 in the four per cents. to B, in trust to pay the
interest annually accruing due to C for her life. A dies. Then C dies, B
holds the fund for the benefit of A's legal representative.
(c) A conveys land to B upon trust to sell it and apply one moiety of the
proceeds for certain charitable purposes, and the other for the
maintenance of the worship of an idol. B sells the land, but the charitable
purposes wholly fail, and the maintenance of the worship does not
exhaust the second moiety of the proceeds. B holds the first moiety and
the part unapplied of the second moiety for the benefit of A or his legal
representative.
(d) A bequeaths Tk. 10,000 to B, to be laid out in buying land to be

conveyed for purposes which either wholly or partially fail to take effect.
B holds for the benefit of A's legal representative the undisposed of
interest in the money or land if purchased.
Transfer for illegal 84. Where the owner of property transfers it to another for an illegal
purpose purpose and such purpose is not carried into execution, or the transferor
is not as guilty as the transferee, or the effect of permitting the
transferee to retain the property might be to defeat the provisions of any
law, the transferee must hold the property for the benefit of the
transferor.
Bequest for illegal 85. Where a testator bequeaths certain property upon trust and the
purpose purpose of the trust appears on the face of the will to be unlawful, or
during the testator's lifetime the legatee agrees with him to apply the
property for an unlawful purpose, the legatee must hold the property for
the benefit of the testator's legal representative.
Bequest of which Where property is bequeathed and the revocation of the bequest is
revocation is prevented by coercion, the legatee must hold the property for the benefit
prevented by of the testator's legal representative.
coercion
Transfer pursuant 86. Where property is transferred in pursuance of a contract which is

to rescindable liable to rescission or induced by fraud or mistake, the transferee must,
contract on receiving notice to that effect, hold the property for the benefit of the
transferor, subject to repayment by the latter of the consideration
actually paid.
Debtor becoming 87. Where a debtor becomes the executor or other legal representative of
creditor’s his creditor, he must hold the debt for the benefit of the persons
representative interested therein.
Advantage gained 88. Where a trustee, executor, partner, agent, director of a company,
by fiduciary legal adviser, or other person bound in a fiduciary character to protect
the interests of another person, by availing himself of his character, gains
for himself any pecuniary advantage, or where any person so bound
enters into any dealings under circumstances in which his own interests
are, or may be, adverse to those of such other person and thereby gains
for himself a pecuniary advantage, he must hold for the benefit of such
other person the advantage so gained.
Illustrations
(a) A, an executor, buys at an undervalue from B, a legatee, his claim

under the will. B is ignorant of the value of the bequest. A must hold for
the benefit of B the difference between the price and value.
(b) A, a trustee, uses the trust-property for the purpose of his own
business. A holds for the benefit of his beneficiary the profits arising from
such user.
(c) A, a trustee, retires from his trust in consideration of his successor

paying him a sum of money. A holds such money for the benefit of his
beneficiary.
(d) A, a partner, buys land in his own name with funds belonging to the
partnership. A holds such land for the benefit of the partnership.
(e) A, a partner, employed on behalf of himself and his co-partners in

negotiating the terms of a lease clandestinely stipulates with the lessor
for payment to himself a lakh of Taka. A holds the lakh for the benefit of
the partnership.
(f) A and B are partners. A dies. B, instead of winding up the affairs of

the partnership, retains all the assets in the business. B must account to
A's legal representative for the profits from A's share of the capital.
(g) A, an agent employed to obtain a lease for B, obtains the lease for
himself. A holds the lease for the benefit of B.
(h) A, a guardian, buys up for himself incumbrances on his ward B's

estate at an undervalue. A holds for the benefit of B the incumbrances so
bought, and can only charge him with what he has actually paid.
Advantage gained 89. Where, by the exercise of undue influence, any advantage is gained
by exercise of in derogation of the interests of another, the person gaining such
undue influence advantage without consideration, or with notice that such influence has
been exercised, must hold the advantage for the benefit of the person
whose interests have been so prejudiced.
Advantage gained 90. Where a tenant for life, co-owner, mortgagee or other qualified owner
by qualified owner of any property, by availing himself of his position as such, gains an
advantage in derogation of the rights of the other persons interested in
the property, or where any such owner, as representing all persons
interested in such property, gains any advantage, he must hold, for the
benefit of all persons so interested, the advantage so gained, but subject
to repayment by such persons of their due share of the expenses
properly incurred, and to an indemnity by the same persons against
liabilities properly contracted, in gaining such advantage.
Illustrations
(a) A, the tenant for life of leasehold property, renews the lease in this
own name and for his own benefit. A holds the renewed lease for the
benefit of all those interested in the old lease.
(b) A village belongs to a Hindu family. A, one of its members, pays

nazrana to Government and thereby procures his name to be entered as
the inamdar of the village. A holds the village for the benefit of himself
and the other members.
(c) A mortgages land to B, who enters into possession. B allows the

Government revenue to fall into arrear with a view to the land being put
up for sale and his becoming himself the purchaser of it. The land is
accordingly sold to B. Subject to the repayment of the amount due on
the mortgage and of his expenses properly incurred as mortgagee, B
holds the land for the benefit of A.
Property acquired 91. Where a person acquires property with notice that another person
with notice of has entered into an existing contract affecting that property, of which
existing contract specific performance could be enforced, the former must hold the
property for the benefit of the latter to the extent necessary to give
effect to the contract.
Purchase by person 92. Where a person contracts to buy property to be held on trust for
contracting to buy certain beneficiaries and buys the property accordingly, he must hold the
property to be held property for their benefit to the extent necessary to give effect to the
on trust
contract.
Advantage secretly 93. Where creditors compound the debts due to them, and one of such
gained by one of creditors, by a secret arrangement with the debtor, gains an undue
several advantage over his co-creditors, he must hold for the benefit of such
compounding
creditors
creditors the advantage so gained.
Constructive trusts 94. In any case not coming within the scope of any of the preceding
in cases not sections, where there is no trust, but the person having possession of
expressly provided property has not the whole beneficial interest therein, he must hold the
for
property for the benefit of the persons having such interest, or the
residue thereof (as the case may be), to the extent necessary to satisfy
their just demands.
Illustrations
(a) A, an executor, distributes the assets of his testator B to the legatees

without having paid the whole of B's debts. The legatees hold for the
benefit of B's creditors, to the extent necessary to satisfy their just
demands, the assets so distributed.
(b) A by mistake assumes the character of a trustee for B, and under

colour of the trust receives certain money. B may compel him to account
for such moneys.
(c) A makes a gift of a lakh of Taka to B, reserving to himself, with B's
assent, power to revoke at pleasure the gift as to Tk. 10,000. The gift is
void as to Tk. 10,000, and B holds that sum for the benefit of A.
Obligor’s duties, 95. The person holding property in accordance with any of the preceding
liabilities and sections of this Chapter must, so far as may be, perform the same
disabilities duties, and is subject, so far as may be, to the same liabilities and
disabilities, as if he were a trustee of the property for the person for
whose benefit he hold it:
Provided that (a) where he rightfully cultivates the property or employs it

in trade or business, he is entitled to reasonable remuneration for his
trouble, skill and loss of time in such cultivation or employment; and (b)
where he holds the property by virtue of a contract with a person for
whose benefit he holds it, or with any one through whom such person
claims, he may, without the permission of the Court, buy or become
lessee or mortgagee of the property or any part thereof.
Saving of rights of 96. Nothing contained in this Chapter shall impair the rights of
bona fide transferees in good faith for consideration, or create an obligation in
purchasers evasion of any law for the time being in force.
1 Throughout this Act, except otherwise provided, the words “Bangladesh”, “Government” and “Taka” or “Tk.” were substituted, for the words
“Pakistan”, “Central Government” or “Provincial Government” and “rupees” or “Rs.” respectively by section 3 and 2nd Schedule of the Bangladesh
Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
2The word “Muslim” was substituted, for the word “Muhammadan” by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And
Declaration) Act, 1973 (Act No. VIII of 1973)
3The words, comma and figure “Registration Act, 1908” were substituted, for the words, comma and figure “Indian Registration Act, 1877” by
section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
4The word “Dhaka” was substituted, for the word “Karachi” by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And
5The word “Dhaka” was substituted, for the word “Karachi” by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And
6 The words “of the Government” were substituted, for the words and comma “of any Provincial Government or of the Central Government, or of
the United Kingdom of Great Britain and Ireland” by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act,
1973 (Act No. VIII of 1973)
7The word “the” was substituted, for the words “any such” and `such` respectively by section 3 and 2nd Schedule of the Bangladesh Laws
(Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
8The word “the” was substituted, for the words “any such” and `such` respectively by section 3 and 2nd Schedule of the Bangladesh Laws
(Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
9Clauses (b) and (bb) were omitted by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No.
VIII of 1973)
10Clauses (c) and (d) were substituted, for clauses (c) and (d) by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And
11The word `Bangladesh` was substituted, for the word `a Province` by section 3 and 2nd Schedule the Bangladesh Laws (Revision And
12The words “Supreme Court” were substituted, for the words “High Court” by section 3 and 2nd Schedule of the Bangladesh Laws (Revision
And Declaration) Act, 1973 (Act No. VIII of 1973)
13 Section 20A was inserted by section 3 of the Indian Trusts (Amendment) Act, 1916 (Act No. I of 1916)
14 Section 20B was inserted by section 2 of the Trusts (Amendment) Act, 2000 (Act No. XXI of 2000)
15The words, commas and figure “investments made before this Act comes into force, or shall be deemed to precluded an investment on a
mortgage of immovable property already pledged as security for an advance under the Land Improvement Act, 1871 or” were omitted by section 3
and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973)
16The second paragraph of section 82 was omitted by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act,
1973 (Act No. VIII of 1973)
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Ministry of Law, Justice and Parliamentary Affairs

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5/28/2018 Trusts Act, 1882 (Act No. II of 1882).

THE TRUSTS ACT, 1882

(ACT NO. II OF 1882).

[Omitted] 2. [Omitted by section 3 and 2nd Schedule of the Bangladesh Laws

Interpretation- 3. A “trust” is an obligation annexed to the ownership of property, and

Explanation - In this section the expression “law” includes, where the

(a) A conveys property to B in trust to apply the profits to the nurture of

(b) A bequeaths property to B in trust to employ it in carrying on a

(c) A, while in insolvent circumstances, transfers property to B in trust

Trust of 5. No trust in relation to immoveable property is valid unless declared by

Trust of moveable No trust in relation to moveable property is valid unless declared as

These rules do not apply where they would operate so as to effectuate a

(a) A bequeaths certain property to B, “having the fullest confidence that

(b) A bequeaths certain property to B, “hoping he will continue it in the

(c) A bequeaths certain property to B, requesting him to distribute it

(d) A bequeaths certain property to B, desiring him to divide the bulk of

(e) A bequeaths a shop and stock-in-trade to B, on condition that he

Who may create 7. A trust may be created-

(b) with the permission of a principal Civil Court of original jurisdiction,

Subject of trust 8. The subject-matter of a trust must be properly transferable to the

It must not be merely beneficial interest under a subsisting trust.

Who may be 9. Every person capable of holding property may be a beneficiary.

No one bound to No one is bound to accept a trust.

A disclaimer by one of two or more co-trustees vests the trust-property

(a) A bequeaths certain property to B and C, his executors, as trustees

(b) A transfers certain property to B in trust to sell it and to pay out of

Where the beneficiary is incompetent to contract, his consent may, for

Nothing in this section shall be deemed to require a trustee to obey any

Explanation - Unless a contrary intention be expressed, the purpose of a

(a) A, a trustee, is simply authorised to sell certain land by public

(b) A, a trustee of certain land for X, Y and Z, is authorised to sell the

(a) The trust-property is a debt outstanding on personal security. The

(b) The trust-property is money in the hands of one of two co-trustees.

The trust-property is immoveable property which has been given to the

(a) A, living in Chittagong, is a trustee for B, living in 4[ Dhaka]. A

(d) A, a trustee directed to sell the trust-property by auction, sells the

(e) A, a trustee for B, in execution of his trust, sells the trust-property,

(f) A, a trustee for B of a policy of insurance, has funds in hand for

(g) A bequeaths certain moneys to B and C as trustees, and authorizes

reversionary interest, the trustee is bound, unless an intention to the

A, a trustee for B, C and D, is empowered to choose between several

(a) in promissory notes, debentures, stock or other securities 6[ of the

10[(c) in stock or debentures of, or shares in, Companies the interest

(e) on a first mortgage of immoveable property situate in 11[

(f) on any other security expressly authorised by the instrument of trust,

Provided that, where there is a person competent to contract and entitled

Provided that a trustee may not purchase at a price exceeding its

(2) In determining the exact amount of money that may be invested

(3) Nothing in this section shall be construed to be a bar to authorise the

A bequeaths property to B, directing him with all convenient speed and

A trustee committing a breach of trust is not liable to pay interest except

(a) where he has actually received interest:

(b) where the breach consists in unreasonable delay in paying trust-

(d) where he may be fairly presumed to have received interest.

He is liable, in case (a), to account for the interest actually received,

(e) where the breach consists in failure to invest trust-money and to

(f) where the breach consists in the employment of trust-property or the

(a) A trustee improperly leaves trust-property outstanding, and it is

(b) A bequeaths a house to B in trust to sell it and pay the proceeds to

(c) A trustee is guilty of unreasonable delay in investing trust-money in