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Article Published in the Express Magazine Dated March 10, 2002
General Attorney : Rajiv K. Luthra

I am a co-trustee of a trust property created by my father. Of late, I have developed estranged relations with my other brothers and sisters who are the other co-trustees with me. I have heard that they are proposing to sell off the trust property and that they have fabricated a power of attorney from me giving my consent to it. Can they do that?

M. Mahesh, Ghaziabad

According to the provisions of Section 48 of the Trust Act, 1882 ("Act"), it is axiomatic that where there are more trustees than one, all must join in the execution of the trust, except where the instrument of trust otherwise provides. Thus, if the trust deed does not specifically provide otherwise, all acts, which the trustees intend to take for executing the trust, must be taken by all of them acting together.

As regards the issue of fabrication, reliance maybe placed on Section 47 of the Act which indicates that a trustee cannot properly delegate his office or any of his duties to a co-trustee or a stranger, unless (a) the instrument of trust so provides, or (b) the delegation is in the regular course of business, or (c) the delegation is necessary, or (d) the beneficiary, being competent to contract consents to the delegation. From the available facts it appears that delegation is not necessary. If the trustees cannot delegate their duties, it follows even otherwise that they must all personally perform those duties, and not appoint one of themselves to manage the business of the trust. The reason behind is that the settlor has trusted all his trustees, and it behoves each and every one of them to exercise his individual judgment and discretion on every matter, and not blindly to leave any questions to his co-trustees or co-trustee.

You may further be informed that by virtue of Section 49 of the Act, even though the Board of Trustees enjoy discretionary powers, when such discretionary powers are not exercised reasonably and in good faith, such powers may be controlled by a court. Thus, where absolute discretion has been given to trustees to sell the trust property, the court can see that they do not exercise it improperly or unreasonably.

At the time of my marriage in 1995 my parents gifted me some jewellery. We have now decided to build a new house and since the said jewellery is out of fashion, I have agreed that my husband may sell the jewellery, except one very valuable piece which is from my grandmother and which I would like to keep. My husband says, in the interest to build a house for the family he is entitled to sell all the jewellery and I am legally bound to give my jewellery for the sake of the family. Kindly give me your expert opinion.

Sangeeta Wadhwa, Chandigarh

In modern Hindu law, the term “stridhan” denotes property acquired or owned by a woman and over which she has absolute control. It includes gifts made by the woman’s parents, like your jewellery given at the time of your wedding. A Hindu married woman is the absolute owner of her stridhan property and can deal with it in any manner she likes without any reference to her husband. Ordinarily, the husband has no right or interest in such property with the sole exception that in times of extreme distress, as in famine, illness or the like, the husband can utilise it. But he is morally bound to restore it or its value when he is able to do so. Building a house for the family may not be said to be a case of extreme distress. The Hon'ble Supreme Court has held, that the stridhan property of a married woman does not become the joint property of the spouses. The husband does not acquire joint interest in the property. Thus, how you deal with your stridhan will be entirely your discretion.

 
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