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CS Professional · CSR and Social Governance · Societies and Trusts

In a suit for execution of the Gokul Trust, the Court passes a decree directing how the trust is to be administered. The trustees, wishing to sell a trust property urgently, ignore the decree's terms because the trust deed gives them a wide power of sale. An appeal against the decree is pending before the Appellate Court. Under the Indian Trusts Act, 1882, how may the trustees validly exercise their powers?

The trustees may act only in conformity with the decree or with the sanction of the Court that made it, or of the Appellate Court while an appeal is pending. The wide power of sale in the deed does not override this restriction, and a pending appeal does not suspend the decree.

  1. AOnly in conformity with the decree, or with the sanction of the Appellate Court while the appeal is pending, or of the Court that made the decreeCorrect
  2. BFreely, because the deed's power of sale overrides any decree
  3. CFreely, because a pending appeal suspends the decree
  4. DOnly with the unanimous consent of all beneficiaries, whatever the Court says

Explanation

Section 45 bars trustees from exercising any of their powers after a decree in a suit for execution of the trust except in conformity with the decree or with sanction of the decreeing Court, or the Appellate Court where an appeal is pending. The deed's power does not override this. A pending appeal does not free them; it only changes which Court may sanction.

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