• Trust dissolved or transfer

Dear sir. 
My grandfather created irrevocable trust in 2000 with 20 member after that trust not working he modified trust in 2018 with 4 member without any resolution or consent of previous member. But again all trustees not working and currently trust is only paper trust and property of trust misused by trustees. 
My questions
1) any possibility of trust dissolved by settler? 
2) can trust property can be transfer by settler without resolution or consent of trustees? 
3) can he is again change all trustee whitout consent previous trustees or resolution? 
4)if no option of disolved the trust then how to safe his land pls suggested??
Asked 4 years ago in Property Law
Religion: Hindu

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14 Answers

As per section 77 of the Indian Trust Act,1882, a trust may be extinguished or terminated if “its purpose becomes unlawful”. However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts to legally terminate or dissolve a valid public charitable trust. However, the assets and liabilities of the trust can be transferred to another charitable trust having similar objects thereby the former trust can be dissolved. But a revocable trust can be dissolved as per the terms and conditions of the trust deed.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

Trust can be dissolved by settlor with consent of beneficiaries 

 

2) The Delhi High Court has said prima facie no trust property can be held, sold, mortgaged or exchanged without prior permission of the court.

 

3) for change of trustees resolution has to be passed 

Ajay Sethi
Advocate, Mumbai
94753 Answers
7541 Consultations

5.0 on 5.0

Can you Ppease state whether the Trust is registered under Indian Truat Act?

Whether trust deed of the trust is available.? 

Please discuss main clauses of the Trust to guide you and answer your questions. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

1. Yes he can dissolve it

2. No he needs consent of trustees unless trust deed gives him that right exclusively

3. No

4. Trust can be dissolved. Land can be safe. You approch police or court if you smell foul play

Prashant Nayak
Advocate, Mumbai
31954 Answers
179 Consultations

4.1 on 5.0

1. As per rule a settlor can agree with the beneficiaries to terminate an irrevocable trust, even if the trustee objects for the same .

- But if the settlor is dead, then the court order needed for the same. 

- Further, a trust become irrevocable, if the person who set up the trust dies, and then it cannot be changed except by court order.

2. As per Delhi High Court, Trust property cannot be sold /mortgaged or exchanged without without prior permission of the court. This order is applied for all trust , whether public or private.

3. After passing the resolution or a court order needed. 

Mohammed Shahzad
Advocate, Delhi
13246 Answers
198 Consultations

5.0 on 5.0

If the trust was irrevocable it cannot be dissolved. The trust deed is the key to all your questions. Either go through it or share it for a bettter appreciation of the controversy.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

1. Trust cannot be dissolved. 

2. No, consent of trustees is required for each and every point. 

3. No,,,,,,Consent is 100% required. 

4. Get a resolution passed again in AGM that the land solely belongs to the Trust and cannot be transferred. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. The power of settler and the obligations of trustees are clearly entrenched in the trust deed. Si refer to the trust deed itself for the same. 

2. Same as above. 

3. Without seeing the content of trust deed its very difficult to advise.  The issues if settler, beneficiary, trustee etc are governed by trust deed.  In the event of deadlock door of court is always open. 

Devajyoti Barman
Advocate, Kolkata
22830 Answers
488 Consultations

5.0 on 5.0

Dear Sir,

You are suggested to call for the meeting of all the existing and previous members and then pass the resolution and do further activities of removing the members.   

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

Yes the trust can be dissolved and the trusteeship can be revoked.

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

Trust has become without any business. It can be unregistered by settler/member/s or by commission of charity.

yes,

yes,

yes,

Unregistered the trust being defunct Since the trust failed to deliver the purpose for which it is formed and us the land, land will resume to original owner.

Yogendra Singh Rajawat
Advocate, Jaipur
22643 Answers
31 Consultations

4.4 on 5.0

If the settlor is not alive, then the consent of the beneficiary is needed. 

only after obtaining the prior permission from the Court. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

1. The  trust cannot be dissolved by the settler. 

2. Resolution to this effect is required to be passed. 

3. If there's a misuse or if the beneficiary has been deprived then suitable action as per bylaws can be taken. 

4. You can go through the bylaws of the trust for taking suitable action. 

T Kalaiselvan
Advocate, Vellore
84954 Answers
2198 Consultations

5.0 on 5.0

1. No trust cannot be dissolved as per Indian Trust act. 

2. No

3. No trustees cannot be changed without consent of majority of trustees. 

4. A resolution can passed by trustees that trust property cannot be enjoyed by trustees and it will only be used for purpose of trust. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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