Skip to content

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

Trustee Anil of a family trust has remained absent from India for a continuous period of eight months. Under section 73 of the Indian Trusts Act, 1882, what is the legal effect of this absence?

A new trustee may be appointed in Anil's place. Section 73 of the Indian Trusts Act treats a continuous absence from India of six months as a ground for replacement. The appointment is made by the nominated person, the author or the continuing trustees, and the Court is not the only route.

  1. AA new trustee may be appointed in his place, since the section covers continuous absence from India for six monthsCorrect
  2. BAnil automatically ceases to be a trustee and trust property vests in the beneficiaries
  3. CNo replacement is possible unless Anil is also declared insolvent
  4. DOnly the Court may appoint a replacement, and never the author or the other trustees

Explanation

Section 73 lists continuous absence from India for six months as an occasion for appointing a new trustee. The appointment is made by the persons listed in the section, not only by the Court. The section does not say the trustee automatically ceases, and insolvency is a separate ground.

Did you get it right without looking?

One question tells you little. A timed set on Non-Corporate Entities shows your real accuracy, how long you take and where you lose marks.

Practise Non-Corporate EntitiesFree diagnostic mock

More Non-Corporate Entities questions