A, a trustee for B and her children, is directed by the author of the trust to lend, on B's request,…
Section 11 does not require a trustee to obey a direction when doing so would be "impracticable, illegal or manifestly injurious to the beneficiaries". Lending trust money…
Choose your answer
A, a trustee for B and her children, is directed by the author of the trust to lend, on B's request, trust-property to B's husband, C, on the security of his bond. C becomes insolvent, and B then requests A to make the loan. Under the Indian Trusts Act, 1882, what may A do?
Answer and explanation
Correct answer D
Section 11 does not require a trustee to obey a direction when doing so would be "impracticable, illegal or manifestly injurious to the beneficiaries". Lending trust money on the bond of an insolvent borrower would plainly injure B's children, so illustration (c) to section 11 says "A may refuse to make it." The author's direction does not bind A once obeying it would cause such injury.