New Enroll in RBI Gr B 2025 Exclusive New Batch on March 18

    Question

    Under the Indian Trusts Act, 1882, which of the

    following is NOT a ground for the extinguishment of a trust?  
    A When its purpose is completely fulfilled Correct Answer Incorrect Answer
    B When its purpose becomes unlawful Correct Answer Incorrect Answer
    C When the fulfilment of its purpose becomes impossible Correct Answer Incorrect Answer
    D When the trust property is sold at market value Correct Answer Incorrect Answer
    E When a revocable trust is expressly revoked Correct Answer Incorrect Answer

    Solution

    As per Section 77 , a trust is extinguished in the following cases:  

    • When its purpose is completely fulfilled (clause a).  
    • When its purpose becomes unlawful (clause b).  
    • When its purpose becomes impossible due to destruction of trust property or otherwise (clause c).  
    • When a revocable trust is expressly revoked (clause d).  
    The sale of trust property at market value does not extinguish a trust unless it directly affects the trust's purpose.  

    Practice Next