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

Under a trust deed, Anil is beneficiary of a trust holding rented shops. The deed is silent on income. Anil claims the rents and profits of the trust property. Which statement is correct under the Indian Trusts Act, 1882?

Anil has a right to the rents and profits of the trust property, but this right is subject to the provisions of the instrument of trust. It is not absolute and can be modified by the terms of the deed.

  1. AHe has a right to the rents and profits, subject to the provisions of the instrument of trustCorrect
  2. BHe has no right to income unless the Court orders it
  3. CHe may claim only the capital and never the income
  4. DHis right to rents and profits exists regardless of anything in the trust instrument

Explanation

Section 55 gives the beneficiary, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust property. The last option is wrong because the right is subject to the instrument.

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