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    Question

    What is the rule regarding the appointment of a new

    trustee under the Indian Trusts Act, 1882?  
    A A trustee can never be replaced once appointed Correct Answer Incorrect Answer
    B A new trustee can only be appointed by the settlor Correct Answer Incorrect Answer
    C A new trustee can be appointed by the court or as per the trust deed Correct Answer Incorrect Answer
    D Beneficiaries have the sole authority to appoint new trustees Correct Answer Incorrect Answer
    E A trustee can only be replaced if they resign voluntarily Correct Answer Incorrect Answer

    Solution

    Section 73 and 74 of the Indian Trusts Act, 1882, provides that a new trustee can be appointed in accordance with the provisions of the trust deed or by the court in specific circumstances, such as the death or incapacity of an existing trustee.   Section 73 says that when a trustee cannot continue their role due to reasons like death, declining the position, being absent from India for six months, becoming insolvent, or being deemed unfit by a Civil Court, a new trustee can be appointed. The appointment can be made by a person named in the trust document or, if no such person exists, by the trust's creator (if alive and capable), the remaining trustees, the legal representative of the last trustee, or retiring trustees with the court's approval. The appointment must always be made in writing.   The number of trustees may also be increased during this process. The Official Trustee can be appointed as the sole trustee with their consent and a court order. If a trustee named in a will dies before the testator, or if a retiring trustee is willing to assist in appointing a new trustee, those situations are also covered under this provision. These rules ensure the trust continues to function effectively, even when changes in trusteeship occur.   Section 74 mentions appointment by Court - Whenever any such vacancy or disqualification occurs and it is found impracticable to appoint a new trustee under section 73, the beneficiary may, without instituting a suit, apply by petition to a principal Civil Court of original jurisdiction for the appointment of a trustee or a new trustee, and the Court may appoint a trustee or a new trustee accordingly.    

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