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

Ramesh created a private trust for his grandchildren and named Sunita as the person empowered by the trust deed to appoint new trustees. Trustee Mohan, an original trustee, dies. Under the Indian Trusts Act, 1882, who has the first right to appoint the new trustee in his place?

The person nominated in the trust instrument for appointing new trustees, here Sunita, has the first right. Section 73 of the Indian Trusts Act gives priority to that nominee. The author, continuing trustees or the Court come in only when no nominee exists or the nominee is unable or unwilling to act.

  1. ASunita, the person nominated by the instrument of trust for that purposeCorrect
  2. BThe principal Civil Court of original jurisdiction
  3. CThe surviving trustees, acting by majority
  4. DThe Registrar of Firms of the State

Explanation

Section 73 says a new trustee may be appointed first by the person nominated for that purpose in the instrument of trust. Only if there is no such person, or none able and willing to act, do the author or the continuing trustees get the power. The Court acts only if appointment under section 73 is impracticable.

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