A conveys land to B upon trust to sell it and apply one moiety of the proceeds for certain charitable…
Section 83 requires a trustee to hold trust-property that is unexhausted, or whose trust cannot be executed, for the author of the trust or his legal representative.…
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A conveys land to B upon trust to sell it and apply one moiety of the proceeds for certain charitable purposes, and the other for the maintenance of the worship of an idol. B sells the land, but the charitable purposes wholly fail, and the worship does not exhaust the second moiety. Under the Indian Trusts Act, 1882, how does B hold the first moiety and the unapplied part of the second?
Answer and explanation
Correct answer B
Section 83 requires a trustee to hold trust-property that is unexhausted, or whose trust cannot be executed, for the author of the trust or his legal representative. Illustration (c) to section 83 accordingly says B holds "the first moiety and the part unapplied of the second moiety for the benefit of A or his legal representative". The surplus is not added to the worship fund, because A limited that purpose to one moiety.