Section 68 of the Indian Trust Act, 1882 – Liability of beneficiary joining in breach of trust

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Section 68: Liability of beneficiary joining in breach of trust

Where one of several beneficiaries–

  • (a) joins in committing breach of trust, or
  • (b) knowingly obtains any advantage therefrom, without the consent of the other beneficiaries, or
  • (c) becomes aware of a breach of trust committed or intended to be committed, and either actually conceals it, or does not within a reasonable time take proper steps to protect the interests of the other beneficiaries, or
  • (d) has deceived the trustee and thereby induced him to commit a breach of trust, the other beneficiaries are entitled to have all his beneficial interest impounded as against him and all who claim under him (otherwise than as transferees for consideration without notice of the breach) until the loss caused by the breach has been compensated. When property has been transferred or bequeathed for the benefit of a married woman, so that she shall not have power to deprive herself of her beneficial interest, nothing in this section applies to such property during her marriage.

Source: official text of The Indian Trust Act, 1882 as published on India Code (PDF). All sections of the Indian Trust Act, 1882.