Contents

PUBLIC AND PRIVATE TRUSTS 4

.CREATION OF TRUST 4

COMEPTENCY TO ENTER INTO CONTRACT 5

WHO ALL CAN BE BENEFICIARY UNDER LAW 5

WHO ALL CAN BE TRSUTEE UNDER THE TRUST LAW 5

REQUIREMENTS FOR STARTING PUBLIC TRUST UNDER THE TRUST LAW 5

LIABILITIES OF TRUSTEE UNDER TRUST LAW 5

Liability for breach of Trust 6

RIGHTS & POWERS OF TRUSTEE UNDER TRUST LAW 6

 TRUST DEED

I. INTRODUCTION

“Trust deed has been defined under section 3 of the INDIAN TRUST ACT, 1882, as a trust
is an obligation annexed to the ownership of property, and arising out of a confidence
reposed in and accepted by the owner, or declared and accepted by him, for the benefit of
another, or of another and the owner”.1

“The person who reposes or declares the confidence is called “author of the trust”. The person
who accepts the confidence is called the “trustee”. The person for whose benefit the confidence
is accepted is called the “beneficiary”. The subject matter of the trust is called trust property.
The right of the beneficiary against the trustee as the owner of the trust property is called
beneficial interest. The instrument, if any, by which, the trust is declared is called “instrument
of trust”.”2

“A trust is, in effect, the gift by the author of property or an interest in property to a person or
institution by or through the intervention of trustee. The property of the trust is generally vested
with the trustee and he is empowered to hold the property for the beneficial interest of and
cannot use for his own benefit. A trust is a form of a confidence and trustee is its confidant.
The position occupied by him is fiduciary vis-a-vis the cestui que trust (beneficiary)”.

“Under a trust the author vests the property in the trustee, charging him to utilise it or the
income or profits arising there from the benefit of the beneficiary.Section 4 of the Trust Act
provides that a trust may be created for any lawful purpose. The purpose of a trust act is lawful
unless it is”-

1. Forbidden by law.
2. is of such nature that,if permitted,it would defeat the provisions of any law,or
3. is fraudulent,or
4. involves or implies injury to the person or property of another or
5. the court regards it as immoral or opposed to public policy.

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2
Every trust purpose of which is unlawful is void. And where a trust is created for two
purposes, of which one is lawful and other unlawful, and the two purposes cannot be
separated, the whole trust is void.

II. PUBLIC AND PRIVATE TRUSTS

“Trusts are basically of two types namely a) public, b) private. In a private trust the
beneficiaries are general public or a specific section of it. Whereas, in private trust the
beneficiaries are clearly defined and ascertained. In a public trust the beneficial interest is
vested in an uncertain and fluctuating body of persons. The nature of the trust may be
proved by the evidence of dedication or by user and conduct of parties. Where a trust is
created for the benefit to the community at large or to a section of the community. at large
or to a section of the community is of the essence of a valid charitable trust”.

. CREATION OF TRUST

Section 6 of the Indian trust act provides essential and valid conditions for constituting a
valid trust. This section provides how can an author create a trust and assign rights to
trustees. The control may be implied and expressed. It includes following conditions:

1. There should be an intention from the author to create a trust.

2. The trust should be created for a particular purpose.
3. The monetary assests should be for the benefit of trustees.
4. The control is transferred to the trustee.

The requisite condition under law is that the author of the trust deed should clearly indicate
that there is reasonable intention to create a trust. Furthermore, the subject matter of the
law should be property and should be a transferable to the beneficiary.

The property which is to be transferred should be moveable or immovable. If the property

is immovable then in that case, it would be valid if the author of the trust and the trustee
and should be signed by author and should be signed by will of author of trust. It can to be
used for committing fraud upon.

The purpose for which the trust is established should be lawful under section 4 of the
said act. Whenever, the purpose of law of trust is unlawful, the trust becomes a void.But,if
the property of trust is located in a foreign country then in that case the law of the country
would be applicable. It further provides that that the purpose for which the Deed is
 established should not be unlawful, it should not be fraudulent, if the nature of the project
is such that it wold defeat the purpose of the provision, If the purpose is such that the
provision of the law would be defeated. It should not be immoral and opposite to public
policy

COMEPTENCY TO ENTER INTO CONTRACT

SECTION 7 of trust law provides that a trust should be created by a person who is
competent to contract. In a case where the trust deed is created on behalf of a minor then in
that case permission from Civil Court Should be obtained first.

WHO ALL CAN BE BENEFICIARY UNDER LAW?

Under section of the said act, every person who is capable of holding property can be
designated as a beneficiary, if the beneficiary may renounce is interest under the trust, he
can by disclaimer addressed to the trustee by giving notice

WHO ALL CAN BE TRSUTEE UNDER THE TRUST LAW?

Section 10 provides that any person who is competent to enter a contract can become
trustee. No person can be forced to accept a trust. A person who has been given an
opportunity to become a trustee, he or she can accept or blatantly reject the trust. He can
show intent by words, written, speaking, or by conduct. The assigned trustee can disclaim
it also, but can do it within a reasonable time. If he expresses his consent then in that case,
the property would not be transferred to him. But a case where there are more than one
trustee and one of the trustee refuses to accept., the other would be sole trustee.

Under English Law, the property would be subject to two kinds of ownership. The trustee
is regarded as legal owner and beneficiary of the property is regarded as

REQUIREMENTS FOR STARTING PUBLIC TRUST UNDER THE TRUST LAW

The General rules that arise from judicial precedent is that a charitable trust should
definitely satisfy 3 requirements. These conditions are given below: The trust should be
created for the benefit of public benefit. The trust should be established for exclusive
charitable purpose. The trust should be of charitable

LIABILITIES OF TRUSTEE UNDER TRUST LAW

Liabilities for breach of trust is defined u/s 23 to 30 of the trust law. These liabilities are
of following type
 Liability for breach of Trust

If a trustee commits breach of trust, then in that case he would be liable to compensate the
beneficiary or the trust property in which the loss is sustained loss. A trustee would be liable
to pay, if he receives interest in the property, it may be presumed that he might have received
interest. There would not be any set-off in case of liability

RIGHTS & POWERS OF TRUSTEE UNDER TRUST LAW

I. Right to Title: A trustee has possession of the instrument of trust and all the
documents related to trust property
II. Indemnity: Indemnity in case where there is breach of trust, the trustee who has
breached would indemnify the trustee.
III. Accounts:A trustee has a right to get his accounts settled for the expenses he
incurred.
IV. Authority: A trustee can do all the rightful things with the trusted property
V. Sell: A person has right to sell off the property, if the condition is incorporated in
the trust deed.
TO ALL WHOM IT MAY CONCERN I, AKSHAT SHUKLA, AGED 21 YEARS, RESIDENT OF
55B/6-A HASTINGS ROAD, DELHI, INDIA, Declare and Make Known:

WHEREAS by a deed of settlement, dated the 6th day of May of 2019 made between following

people:

Akshat Shukla, S/O, Atul Kumar Shukla, R/O of 55B/6-

Neha Mishra, D/O,K.K MISHRA, R/O of HIG 55 Preetam Nagar, Allahabad

Certain properties belonging to the said Akshat Shukla situate at dwaraka sector 14

Were conveyed unto and to the use of said property their heirs and assigning upon the

trust therein declared.

AND WHEREAS I,the said Akshat never gave my consent,expressly or impliedly nor

in any manner acted in the execution of the trust,but have refused to act as a trustee.

NOW THESE PRESENT WITNESS that I, THE said A.B,have DISCLAIMED and

to DISCLAIM the office of trustee of the said deed of settlement and all the estate

,right and the interest in the property hereby conveyed and all powers and trusts

which I might jointly with…. Exercise or perform under or by virtue of the said deed

of settlement.

IN WITNESS whereof I have hereto at…… set my Hand this day of…

WITNESS S.D A.B

 ENDOWMENT IN THE FAVOUR OF A DIETY OF A TEMPLE

THE DEED OF ENDOWMENT is made on this the ………… day of…….. 200… by….

WHEREAS I Have created a temple at …………………. and have established a deity by

name of Maharaj in the said temple……

AND WHEREAS I am desirous of dedicating the properties mentioned in the First and

Second Schedules hereto to the said deity and for the cost of construction of the said temple

and to secure worship of the said deity in the said temple and of making a religious

endowment of the said property in the manner herein after appearing.

AND WHEREAS the value of the said properties is Rs…..

NOW THIS DEED WITNESSES and hereby declare as follows:

1. In pursuance of my said desire I hereby grant ,set apart ,dedicate and appoint ALL

That landed and house property described in the first and second schedule all

those securities and movable property described in second schedule hereto and for

the worship of the said deity absolutely for ever I the manner hereinafter containe.

2. I hereby constitute and appoint myself the first Shebait for the purposes adore said

and direct that after my death my eldest son and after his death his eldest male

descendent in the male line shall succeed successively as Shebait and that if any

Shebait dies without leaving any male descendant then his widow and after her

death the eldest of the male heirs , any officer of government appointed by the
 government or court will be she bait who will have the power to appoint she baits

under him removable at his pleasure. If any person entitled to succeed is a minor

then, the guardian for the time being of the property of such minor shall be the she

bait during the term of his guardianship.

3. The She bait shall not have power to sell or mortgage or otherwise transfer the

properties hereinbefore dedicated except in case of urgent necessity and with the

permission of the district Judge for the time being of…….

4. If any person entitled to be a she baits shall renounce the Hindu religion or transfer

of any portion of the dedicated portion in violation of the condition hereinbefore

recited or being a female should become unchaste then he or she shall for the

purposes of this deed be considered to be dead and the person next untitled to

succeed as shebait shall succeed.

5. The she bait for the time being shall hold the said properties hereinbefore dedicated

in trust to manage the same to the best advantage with the full power to let out the

same and in event of any involuntary transfer of any portion of the immovable

property to invest the value or price thereof or any compensation received therefor

in landed property or the securities of the government of India and will have power

to vary such investments from time to time.

6. The income of the said properties hereinbefore dedicated shall be applied first in

the maintenance and repair of the said property and the payment of land
revenue,cesses,taxes and other outgoings in respect of the same and Shebait after

deducting a remuneration for himself ………. Percent of the gross income and

collections shall lay out and expend the remainder of the said income in the daily

worship of the said deity and in defraying the expenses of the usual festivals in

the manner and according to the customs of the family with full liberty to apply

a portion of such income to the improvement of the said property hereinbefore

dedicated or to purchase other property to be included in the said dedication.

IN WITNESS WHEREOF PARTIES have signed this deed on the day of…….

Signed By
 WAKF FOR PUBLIC AND CHARITABLE TRUST

This Deed of Wakf is made the day ….. of…… by me ,A.B, ,aged about ….. years, son of…..

resident of…….. and I hereby declare and make known to all who it may concern that amongst

other properties I am in my own right in proprietary possession of the properties set out in the

schedule hereto and that the said properties are free from all encumbrance ,charges and liens

whatsoever:

AND WHEREAS I have no children, male or female and there are other properties belonging

to me sufficient for my maintenance and the maintenance of my wife;

AND WHEREAS with the object of attaining Kurbat or nearness to god and reward after

hereafter, I desire to make a Wakf of the properties set out in the schedule hereto for any of

the purposes recognized by the Mohammedan Law as religious ,pious, charitable and more

particularly for the maintenance and support of the poor or orphaned children of Mussalmans

belonging to….. sect.

NOW, THEREFORE, THIS DEED WITNESSESS that I, the said A.B., do hereby dedicate

and Declare as WAKF all that property more particularly described in the schedule hereto and

hereafter referred to as the wakf property the aggregate approximate value whereof is not more

than the poor or orphaned children of Mussalmans belonging to sect.

AND I hereby, constitute and appoint myself the first mutawalli of the wakf property. I reserve

the right to nominate the next mutawalli or during my temporary absence to delegate my
powers to such person or persons as I may in my sole discretion consider fit and proper. In case

I die and fail to appoint any mutawalli or during my temporary absence to delegate my powers

to such person or persons who may be acting in my stead or performing the duties of a

mutawalli shall be deemed to be next mutawalli. If more than one person is nominated by me

or is or are acting in my place then both shall continue to act as such mutawallis shall be

deemed with power to appoint another in their stead or after them.In case of a vacancy arising

in the office of a mutawalli or mutawallis for any reason whatsoever, if no person or persons

or person is or can be appointed then it shall be competent for the principal Civil Court of

Original Jurisdiction to fill the vacancy or vacancies from among any adult person professing

the Muslim faith and belonging to …. Sect.

PROVIDED ALWAYS that no person not a muslim or renouncing the Mussalman faith shall

be appointed or continue to act as mutawalli to the wakf hereby created.

The mutawalli or mutawallis created for the the time being shall exercise all the powers and

Duties as may be necessary for officiating, managing, preserving and utilising the Wakf

Property and fir the said purpose may engage , employee or dismiss any manager ,servant,

contractor or any person employed by the wakf.

The income of the waqf property after Defraying the expense of its upkeep, the management

of the wakf and payment of all taxes ,etcetra ,shall be utilised for the following objects, inter

alia:
(1) Maintenance of poor Muslim orphans,provided they belong and continue belong to

the….. sect.

(2) Education of poor Muslim Orphans , provided they belong and continue belong to ….

Sect

(3) Medical attendance and medicine to the same class of muslims as stated above

The mutawalli or mutawallis shall also be empowered to accept all donations, grants,

presents and other property into any other as may be necessary for the better utilisation

thereof for the purposes of the Wakf.

IN WITNESS whereof I,the said A.B, have hereto at…. signed this deed and assumed

full control and possession of the properties hereby dedicated and mentioned in the

schedule hereto mutawalli there of

 DISCLAIMER BY TRUSTEE UNDER A WILL

I, Ambuj Maurya appointed Trustee under will, dated 14. of…. late of….. do hereby declare
and make known that I disclaim the said office of Trustee AND all estates devised and
bequeathed to me and also all interest in and powers vested in me under or by virtue of the
said will

IN WITNESS whereof I have hereto set my hand at ……. this day of……. 2019

WITNESS: SD. A.B