The duty of a trustee is to invest trust-money in any of the securities mentioned in section 20, clause…
Illustration (d) to section 23 makes the trustee liable "at the option of the beneficiary" either for the principal and interest, or for the securities he might have bought…
Choose your answer
The duty of a trustee is to invest trust-money in any of the securities mentioned in section 20, clause (a), (b), (c) or (d). Instead, he retains the money in his hands. Under section 23 of the Indian Trusts Act, 1882, what may the beneficiary claim?
Answer and explanation
Correct answer C
Illustration (d) to section 23 makes the trustee liable "at the option of the beneficiary" either for the principal and interest, or for the securities he might have bought when the investment was due together with the intermediate dividends and interest. The choice lies with the beneficiary, who will take whichever measure is larger. Compound interest is not the measure, because there was no direction to accumulate.