Trust-property is invested in one of the securities mentioned in section 20. The trustee sells the…
Illustration (g) to section 23 makes the trustee liable "at the option of the beneficiary" either to replace the security with the intermediate dividends and interest, or to…
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Trust-property is invested in one of the securities mentioned in section 20. The trustee sells the security for a purpose not authorised by the instrument of trust. Under section 23 of the Indian Trusts Act, 1882, what may the beneficiary require?
Answer and explanation
Correct answer C
Illustration (g) to section 23 makes the trustee liable "at the option of the beneficiary" either to replace the security with the intermediate dividends and interest, or to account for the sale proceeds with interest. The beneficiary chooses whichever restores him better. Bare proceeds without interest would leave him short of what he lost.