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CS Executive · Setting Up of Business, Industrial and Labour Laws · Non-Corporate Entities

A trust deed names no person to appoint new trustees. Its author, Mr. Iyer, is alive and competent to contract. The only trustee, Kavita, has been declared insolvent. Who may appoint the new trustee under section 73 of the Indian Trusts Act, 1882, and how must the appointment be made?

Mr. Iyer, as the author of the trust, may appoint the new trustee, because the deed names no appointer and he is alive and competent to contract. Section 73 requires the appointment to be in writing under his hand. An oral appointment or a beneficiaries' resolution is not valid.

  1. AMr. Iyer, the author of the trust, by writing under his handCorrect
  2. BKavita, the insolvent trustee, orally before beneficiaries
  3. CThe beneficiaries, by passing a resolution at a meeting
  4. DThe Official Trustee, without the consent of any Court

Explanation

Where the deed names no one, section 73(b) lets the author appoint if he is alive and competent to contract. The section requires every appointment to be in writing under the hand of the person making it. The Official Trustee may be appointed only with his consent and by Court order, so the last option is wrong.

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