Concept_of_Trust_Detailed, law ppt, college ppt

Concept_of_Trust_Detailed

1. Title Slide Concept of Trust – Under Indian Trusts Act, 1882 and Law of Equity Prepared by: [Your Name] Subject: Law of Equity & Trusts Institution: [Your College Name] Date: [Insert Date]

2. Introduction to the Concept of Trust – Historical & legal background. The concept of 'Trust' originates from English equity law where moral and legal ownership diverged. Trust means confidence reposed in one person for the benefit of another. Trusts are legal obligations attached to ownership for the benefit of another. They represent a fusion of moral conscience and legal duty.

3. Evolution: From English Equity to Indian Trusts Act, 1882 In England, equity emerged to correct rigidities of common law. Courts of Chancery developed 'uses' or trusts to protect fairness. India adopted these equitable principles through codification in the Indian Trusts Act, 1882. The Act applies to private trusts and sets legal frameworks for trustee obligations.

4. Definition and Interpretation (Section 3) Section 3 defines a trust as 'an obligation annexed to ownership of property, arising out of confidence reposed in and accepted by the owner for the benefit of another or of himself and another.' Key Elements: • Obligation – a legally enforceable duty. • Confidence – reliance placed on the trustee. • Ownership – legal title vested in trustee. • Benefit – held for another’s advantage.

5. Nature and Characteristics of Trusts • A trust arises from confidence between parties. • It divides ownership: legal title (trustee) and beneficial interest (beneficiary). • It is an equitable obligation, not merely a contract. • Governed by principles of honesty, good faith, and fiduciary responsibility.

6. Essential Elements Explained in Detail 1. Author/Settlor – person who creates trust. 2. Trustee – person who manages trust property. 3. Beneficiary – person who benefits. 4. Trust Property – must be specific and transferable. 5. Lawful Purpose – object must be legal. 6. Declaration – clear intention to create trust is necessary.

7. Types of Trusts with Indian Examples • Private Trust – created for specific individuals; e.g., family trust. • Public Trust – for public benefit; e.g., charitable or religious institutions. • Constructive Trust – imposed by equity when fairness demands. • Resulting Trust – arises when beneficial interest returns to the settlor.

8. Public vs Private Trusts (Key Differences) Private Trusts: - Governed by Indian Trusts Act, 1882. - Specific beneficiaries. - Created for private gain. Public Trusts: - Governed by Charitable and Religious Trusts Acts. - For general public welfare. - Purpose includes education, relief, religion, etc.

9. Equity’s Role in Trust Formation Equity underpins all trust relationships. Key equitable principles: • Equity looks to intent, not form. • He who seeks equity must do equity. • Equity will not suffer a wrong without a remedy. Equity ensures fairness and prevents misuse of trust property.

10. Equitable Ownership vs Legal Ownership (Dual System) Legal Ownership – held by trustee; recognized by law. Equitable Ownership – held by beneficiary; recognized by equity. Dual ownership ensures that legal form and moral fairness coexist. Example: Trustee owns title, but cannot enjoy property personally.

11. Duties, Rights, and Liabilities of Trustees Duties: • Execute trust faithfully (Sec. 11-20). • Protect and preserve property. • Keep accounts and act prudently. • Be impartial among beneficiaries. Rights: • To reimbursement and indemnity. • To seek court’s direction. • To possession of title deeds. Liabilities: • Personal liability for breach or negligence.

12. Rights and Remedies of Beneficiaries Beneficiaries can: • Enforce performance of trust. • Inspect accounts and documents. • Restrain breach through injunction. • Compel appointment of new trustee. Remedies include damages, injunctions, and restitution.

13. Breach of Trust – Legal and Equitable Remedies Breach occurs when trustee misuses trust property or violates duties. Legal Remedies: • Compensation for loss. • Removal of trustee. • Recovery of property. Equitable Remedies: • Constructive trust. • Tracing of assets. • Injunction.

14. Constructive and Resulting Trusts under Equity Constructive Trust: • Imposed by courts to prevent unjust enrichment. • Arises without express intention. • Example: Wrongful possession. Resulting Trust: • Property returns to settlor when no clear beneficiary. • Example: Failed purpose or lack of intention.

15. Important Indian Case Laws and Precedents 1. Official Trustee of Bombay v. Haridas Mundhra (1962) – Trustee duties. 2. CIT v. Kamla Town Trust (1996) – Charitable purpose. 3. Namburi Basava Subrahmanyam v. Alapati Hymavathi (1996) – Declaration & acceptance. 4. Air India Charters v. UOI (2000) – Constructive trust recognized.

16. Relevance of Trusts in Modern India Trusts play a key role in: • Charitable, religious, and educational activities. • Business trusts like REITs and Mutual Funds. • Estate and wealth management. • Promoting social responsibility and fairness.

17. Conclusion – Harmony of Law and Equity Trust law integrates morality with legal structure. The Indian Trusts Act codifies equitable principles. Trusts ensure justice, responsibility, and good conscience. They embody the harmony between law and equity.