Section 90 of The Indian Trust Act, 1882
Where a tenant for life, co-owner, mortgagee or other qualified owner of any property, by availing himself of his position as such, gains an advantage in derogation of the rights of the other persons interested in the property, or where any such owner, as representing all persons interested in such property, gains any advantage, he must hold, for the benefit of all persons so interested, the advantage so gained, but subject to repayment by such persons of their due share of the expenses properly incurred, and to an indemnity by the same persons against liabilities properly contracted, in gaining such advantage. Illustrations
- (a)A, the tenant for life of leasehold property, renews the lease in his own name and for his own benefit. A holds the renewed lease for the benefit of all those interested in the old lease.
- (b)A village belongs to a Hindu family. A, one of its members, pays nazrana to Government and thereby procures his name to be entered as the inamdar of the village. A holds the village for the benefit of himself and the other members.
- (c)A mortgages land to B, who enters into possession. B allows the Government revenue to fall into arrear with a view to the land being put up for sale and his becoming himself the purchaser of it. The land is accordingly sold to B. Subject to the repayment of the amount due on the mortgage and of his expenses properly incurred as mortgagee, B holds the land for the benefit of A.
Summary
- A qualified owner who uses their position to gain a personal advantage must hold that advantage for the benefit of all interested parties.
- This rule applies to specific ownership roles like tenants for life, co-owners, and mortgagees.
- If a qualified owner gains a benefit while representing all interested parties, they must share that benefit.
- Other interested parties are required to repay their fair share of the expenses spent to get the advantage.
- The other parties must also protect the qualified owner from any proper liabilities taken on to secure the advantage.
Practical examples
FAQ
1. Who qualifies as a qualified owner under Section 90 of the Indian Trusts Act, 1882?
Under Section 90 of the Indian Trusts Act, 1882, a qualified owner includes a tenant for life, a co-owner, a mortgagee, or any other owner with limited or restricted rights to a property.
2. What must a qualified owner do with an advantage they gain by using their position under the Indian Trusts Act, 1882?
Under Section 90 of the Indian Trusts Act, 1882, the qualified owner must hold the gained advantage for the benefit of all other persons who have an interest in that property.
3. Are other interested parties required to pay any expenses under Section 90 of the Indian Trusts Act, 1882?
Yes, under Section 90 of the Indian Trusts Act, 1882, other interested parties must repay their due share of the expenses properly incurred by the qualified owner in gaining the advantage.
4. What happens if a qualified owner takes on financial liabilities to gain an advantage under Section 90 of the Indian Trusts Act, 1882?
Under Section 90 of the Indian Trusts Act, 1882, the other interested parties must indemnify the qualified owner, protecting them against any liabilities properly contracted to gain that advantage.
Test yourself
Q1.Under Section 90 of the Indian Trusts Act, 1882, if a co-owner of a house uses their position to gain a lease renewal in their own name, what is the legal consequence?
Q2.Under Section 90 of the Indian Trusts Act, 1882, what is the obligation of the other interested parties when a qualified owner properly spends money to secure a benefit?
Q3.Under Section 90 of the Indian Trusts Act, 1882, if a mortgagee in possession of land purposely lets the land revenue fall into arrears to buy the land at a government auction, what is the outcome?
Q4.Under Section 90 of the Indian Trusts Act, 1882, which of the following best describes the protection a qualified owner receives against liabilities taken on while gaining a property advantage?