Section 22 of The Indian Trust Act, 1882
Where a trustee directed to sell within a specified time extends such time, the burden of proving, as between himself and the beneficiary, that the latter is not prejudiced by the extension lies upon the trustee, unless the extension has been authorised by a principal Civil Court of original jurisdiction. Illustration A bequeaths property to B, directing him with all convenient speed and within five years to sell it, and apply the proceeds for the benefit of C. In the exercise of reasonable discretion, B postpones the sale for six years. The sale is not thereby rendered invalid, but C, alleging that he has been injured by the postponement, institutes a suit against B to obtain compensation. In such suit the burden of proving that C has not been injured lies on B.
Summary
- If the trust creator sets a specific deadline to sell property, the trustee should normally meet that deadline.
- If the trustee decides to delay the sale past the deadline, they must prove the delay did not cause any financial harm to the beneficiary.
- The trustee can avoid this heavy burden of proof by getting permission for the delay from a principal Civil Court of original jurisdiction.
- Even if the deadline is missed, the eventual sale of the property remains legally valid and cannot be undone on those grounds alone.
Practical examples
FAQ
1. What happens if a trustee misses the deadline to sell property under Section 22 of the Indian Trusts Act, 1882?
Under Section 22 of the Indian Trusts Act, 1882, the sale itself remains legally valid, but if the beneficiary claims they were harmed, the trustee must prove that the delay did not cause any injury.
2. Who must prove that a delayed sale did not harm the beneficiary under Section 22 of the Indian Trusts Act, 1882?
Under Section 22 of the Indian Trusts Act, 1882, the burden of proof lies entirely on the trustee to show that the extension did not prejudice or harm the beneficiary.
3. How can a trustee safely extend the time to sell property without bearing the burden of proof under Section 22 of the Indian Trusts Act, 1882?
Under Section 22 of the Indian Trusts Act, 1882, the trustee can get the extension authorized by a principal Civil Court of original jurisdiction to avoid bearing the burden of proof.
Test yourself
Q1.Under Section 22 of the Indian Trusts Act, 1882, if a trustee delays a sale past the deadline set in the trust, what is the legal status of the eventual sale?
Q2.Under Section 22 of the Indian Trusts Act, 1882, who carries the burden of proving that a delay did not harm the beneficiary?
Q3.Under Section 22 of the Trusts Act of 1882, which authority can approve an extension of time and relieve the trustee of the burden of proof?
Q4.Under Section 22 of the Trusts Act of 1882, if a beneficiary sues a trustee for delaying a property sale by one year, what must the trustee demonstrate to win?