Trusts Act, 1977 (1920 A. D.)

No: 41 Dated: Apr, 01 1978

THE TRUSTS ACT, 1977 (1920 A. D.)

(Act No. XLI of Svt. 1977)

    An Act to define and amend the law relating to private Trusts and Trustees.

    Preamble.– Whereas it is expedient to define and amend the law relating to private trusts and trustees ;

It is hereby enacted as follow :––

CHAPTER I

Preliminary

1. Short title, extent and commencement.—(1) This Act may be called the Trusts Act, 1977.

(2) It extends to the whole of Jammu and Kashmir State. It shall come into force on the Ist day of Baisakh, 1978.

Saving.– Nothing herein contained affects the rules of Mohammedan law as to waqf, or the mutual relations of the members of an undivided family as determined by any customary or personal law, or applies to State Dharmarth Trust, public or private religious or charitable endowments, or to trusts to distribute prizes taken in war among the captors ; and nothing in the second Chapter of this Act applies to trusts created before the date on which this Act comes into force.

2. Omitted

3. Interpreting clause–‘‘Trust’’.– A ‘‘trust’’ is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner ;

‘‘author of the trust’’ the person who reposes or declares the confidence is called ‘‘the author of the trust’’ ;

“trustee’’ the person who accepts the confidence is called the ‘‘trustee’’ ;

‘‘beneficiary’’ the person for whose benefit the confidence is accepted is called the ‘‘beneficiary’’ ;

“trust-property’’ the subject-matter of the trust is called ‘‘trustproperty’’ or ‘‘trust-money’’ ;

“beneficial interest’’ the ‘‘beneficial interest’’ or ‘‘interest’’ of the beneficiary is his right against the trustee as owner of the trust-property ;

“instrument of trust’’ and the instrument, if any, by which the trust is declared is called the ‘‘instrument of trust’’ ;

‘‘breach of trust’’ a breach of any duty imposed on a trustee, as such, by any law for the time being in force, is called a  ‘‘breach of trust’’ ; and in this Act, unless there be something repugnant in the subject or context,

“registered’’ context ‘‘registered’’ means registered under the law for the registration of documents for the time being in force ;

“Notice’’.a person is said to have ‘‘notice’’ of a fact either when he actually knows that fact, or when, but for wilful abstention from inquiry or gross negligence, he would have known it, or when information of the fact is given to or obtained by his agent, under the circumstances mentioned in the Contract Act, 1977, section 229 ; and

Expressions defined in the Contract Ac- all expressions used herein and defined in the Contract Act, shall be deemed to have the meanings respectively attributed to them by that Act