Sale of a property by the managing trustee without trust board resolution
alex
(Querist) 23 December 2011
This query is : Resolved
Dear Sir,
the managing trustee of a trust has all the powers in the trust as per the following text quoted from the trust deed :
"The managing trustee shall have the sole authority to acquire, purchase, sell, mortgage and encumber any immovable property in India for the purpose of promoting and implementing the object of the trust so established by her "
I would like to know weither the sale deed of a land belonging to the trust, done by the managing trustee without resolution signed by the 2 other trustees of the trust (there are 3 trustees in the trust) is legal and valid or not.
thanking you
Looking forward to hearing your valuable comments.
Kind regards
Alex
Raj Kumar Makkad
(Expert) 23 December 2011
Resolution is must to be passed by trust though the proceeding of the purchase is to be initiated by managing trustee but despite of that formal resolution of trust is mandatory without which whole proceeding of purchase is vitiated.
ajay sethi
(Expert) 23 December 2011
as per trust deed managing trustee has all the powers to sell the trust property. no consent of other trustee is required . however as prudsent measure and to avodid conflicts it would be better to obatin consent of other trustees
alex
(Querist) 24 December 2011
Dear Sirs,
thank you very much to both of you for your interest and kind answers but it seems that you dont agree.
I did not mention that this trust is a public/charitable trust.
My questions now are :
- is it compulsory to gat the resolution signed by all the trustees to VALIDATE the sale deed ?
or
- is the sale deed VALID even if the trustees didn't agree with the Managing Trustee to sale the land ?
- If the sale deed is valid then what are the dangers for the buyer of the land ?
- Could trustees or anybody else take legal action against the buyer to invalidate the sale deed and to get back the land into the trust property if the trustees did not sign any resolution for the sale of the land?
- Which legal actions could be taken by anybody against the buyer of the land ?
Is there any legal text to refer to get accurate answers (maybe in the Trusts Act) ?
Thank you very much !
alex
(Querist) 24 December 2011
How to interpret the following article n°48 from Indian Trusts Act 1882 :
48. Co-trustees cannot act singly.
-When there are more trustees than one, all must join in the execution of the trust, except where the instrument of trust otherwise provides.
As it is clearly mentioned that the Managing Trustee has the sole authority to sell any immovable property, doesn't it mean that the " instrument of the trust has been otherwise provided " and than the Managing Trustee can sell LEGALLY the immovable property without the consent of any trustee ?
Thanks again for your valuable comments
Shonee Kapoor
(Expert) 24 December 2011
I agree with Ld. Mr. Sethi, he can sell w/o approval of the other trustees, but it can be challanged (may not be successful, but enough to stop the very sale) and hence it is prudent to take a resolution.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Devajyoti Barman
(Expert) 29 December 2011
Without passing resolution in majority one should not proceed ahead.
