The trust-property is money in the hands of one of two co-trustees, and the instrument of trust gives…
Illustration (b) to section 12 states that the other co-trustee "must not allow the former to retain the money for a longer period than the circumstances of the case…
Choose your answer
The trust-property is money in the hands of one of two co-trustees, and the instrument of trust gives no discretionary power. Under section 12 of the Indian Trusts Act, 1882, what is the duty of the other co-trustee?
Answer and explanation
Correct answer D
Illustration (b) to section 12 states that the other co-trustee "must not allow the former to retain the money for a longer period than the circumstances of the case required". Section 12 requires each trustee to inform himself of the trust-property and see that it is properly got in. He need not seize the money himself, but he cannot simply leave it with his colleague indefinitely.