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Sunrise Education Trust, a private trust created by Mr. Iyer, has three trustees. One trustee, Mr. Rao, is declared an insolvent. The trust instrument names no person to appoint replacements. Mr. Iyer is alive and competent to contract. Who may appoint a new trustee in Mr. Rao's place without approaching the Court?

The author of the trust, Mr. Iyer, may appoint the new trustee by a written instrument under his hand. Where the trust deed names no appointer, Section 73 allows the living and competent author, or the continuing trustees, to fill a vacancy caused by a trustee's insolvency, without going to Court.

  1. AOnly the principal Civil Court of original jurisdiction
  2. BThe author of the trust, Mr. Iyer, by writing under his handCorrect
  3. CThe beneficiaries by majority vote
  4. DThe Official Trustee, compulsorily

Explanation

Under Section 73, a trustee declared insolvent creates a vacancy. If the instrument nominates no appointer, the author of the trust, if alive and competent to contract, or the continuing trustees may appoint, by writing. Court appointment under Section 74 arises only where appointment under Section 73 is impracticable. Beneficiary voting is not provided.

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