OF THE DISABILITIES OF TRUSTEESCentral

Section 46 of The Indian Trust Act, 1882

A trustee who has accepted the trust cannot afterwards renounce it except (a) with the permission of a principal Civil Court of original jurisdiction, or (b) if the beneficiary is competent to contract, with his consent, or ( c) by virtue of a special power in the instrument of trust.

Summary

Once a trustee accepts a trust, they cannot choose to resign or step down on their own.
A trustee can only renounce their role if they obtain permission from a principal Civil Court of original jurisdiction, which is a primary local civil court.
Alternatively, they can step down if all beneficiaries are competent to contract and give their consent.
A trustee can also renounce if the trust document itself contains a special power allowing them to do so.

Practical examples

1Ramesh accepted to be the trustee for his sister's children's education fund. Two years later, he gets busy with his own work and wants to quit. He cannot simply resign unless he obtains the consent of all the nieces and nephews, provided they are of legal age and competent to sign contracts, or if he gets permission from the local principal Civil Court.

2Sunita is a trustee under a property trust. The trust deed contains a specific clause stating that any trustee can step down after giving a three-month written notice to the others. Sunita can use this special power to resign without needing court permission or beneficiary consent.

FAQ

1. Can a trustee resign under the Indian Trusts Act, 1882, Section 46?

Under Section 46 of the Indian Trusts Act, 1882, a trustee who has accepted the trust cannot resign or renounce their role afterwards, unless they have court permission, the consent of competent beneficiaries, or a special power in the trust instrument.

2. What happens if a trustee wants to quit under Section 46 of the Indian Trusts Act?

Under Section 46 of the trust law, the trustee must continue their duties unless they qualify for one of the three exceptions, which are court approval, consent of all competent beneficiaries, or an express power of resignation in the trust deed.

3. Does a trustee need court permission to step down under Section 46 of the 1882 Act?

No, court permission under Section 46 of the 1882 Act is not always necessary if the trustee has either the consent of all beneficiaries who are competent to contract, or a special power to resign in the trust document itself.

Test yourself

Q1.Under Section 46 of the Indian Trusts Act, 1882, which of the following is NOT a valid method for a trustee to renounce their office after accepting it?

Q2.Under Section 46 of the Indian Trusts Act, 1882, if a beneficiary is a minor, can the trustee renounce the trust solely with that minor's consent?

Q3.Under Section 46 of the 1882 trust legislation, which court has the authority to permit a trustee to renounce their office?

Q4.Under Section 46 of the Indian Trusts Act, 1882, when does the restriction on renouncing the trust begin to apply to a person?

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