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

Mehta Family Trust has three trustees. One trustee, Ramesh, dies. The trust deed names no person to appoint a new trustee. Under the Indian Trusts Act, 1882, who may appoint the new trustee, in the absence of any nominated person, if the author of the trust is alive and competent to contract?

The author of the trust, if alive and competent to contract, or the surviving or continuing trustees may appoint the new trustee. This applies where the deed names no person to appoint. The appointment must be in writing under the hand of the person making it.

  1. AThe author of the trust, or the surviving or continuing trusteesCorrect
  2. BThe Registrar of Firms of the State
  3. CThe beneficiary alone, by a written notice
  4. DThe Official Trustee, without any court order

Explanation

Section 73 provides that where the instrument names no person (or none able and willing to act), the author of the trust if alive and competent to contract, or the surviving or continuing trustees, may appoint the new trustee. A Registrar of Firms has a role only under the Partnership Act. The Official Trustee can be appointed only with his consent and by court order, and only for a sole trustee.

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