Section 30 of The Indian Trust Act, 1882
Subject to the provisions of the instrument of trust and of sections 23 and 26, trustees shall be respectively chargeable only for such moneys, stocks, funds and securities as they respectively actually receive, and shall not be answerable the one for the other of them, nor for any banker, broker or other person in whose hands any trust - property may be placed, nor for the insufficiency or deficiency of any stocks, funds or securities, nor otherwise for involuntary losses.
Summary
- Trustees are protected from personal liability for any funds or property they did not actually receive themselves.
- A trustee is generally not answerable for the actions, defaults, or omissions of their co-trustees.
- A trustee is not liable for the defaults of a banker, broker, or other person with whom trust property is placed.
- Trustees are protected from liability for any deficiency in the value of stocks, funds, or securities.
- Trustees are not held responsible for any involuntary losses affecting the trust, meaning losses occurring without their fault.
- This statutory indemnity is subject to the provisions of the trust deed, Section 23 on breach of trust, and Section 26 on co-trustee defaults.
Practical examples
FAQ
1. Is a trustee personally liable if a bank holding trust money fails under the Indian Trusts Act, 1882?
No. Under Section 30 of the Indian Trusts Act, 1882, a trustee is not answerable for any banker, broker, or other person in whose hands trust property is placed, nor for involuntary losses, provided they acted with proper care.
2. Can a trustee be held responsible for trust funds they never actually received under the Indian Trusts Act, 1882?
No. Under Section 30 of the Indian Trusts Act, 1882, trustees are only chargeable for the specific moneys, stocks, funds, and securities that they actually and personally receive.
3. Does the indemnity in Section 30 of the Indian Trusts Act, 1882 protect a trustee who commits a breach of trust?
No. The indemnity under Section 30 of the Indian Trusts Act, 1882 is explicitly subject to Section 23 (liability for breach of trust) and Section 26 (co-trustee defaults), meaning a trustee who fails in their legal duties is still held liable.
Test yourself
Q1.Under Section 30 of the Indian Trusts Act, 1882, for which of the following is a trustee personally answerable, in the absence of a breach of duty?
Q2.Under Section 30 of the Trusts Act of 1882, whose defaults are trustees generally NOT answerable for?
Q3.Under Section 30 of the 1882 trusts legislation, the statutory indemnity provided to trustees is explicitly made subject to which other provisions?
Q4.Under the Indian trust law, if a trustee neglects to check on their co-trustee for two years as described in Section 26, can they claim protection under the general indemnity of Section 30?