Sunday, 13 January 2019

What is difference between ordinary trustee and hereditary trustee?

In the case of hereditary trustee, the office devolves on the trustee according to the rule of succession laid down by the founder or according to usage or custom applicable to the institution or trust. The phrase `trustee' is defined in section 2(18) of the Trust Act as follows :-

" 2(18) "trustee" means a person in whom either alone or in association with other persons, the trust property is vested and includes a manager;"
This makes no distinction between an `ordinary trustee' and a `hereditary trustee'. No trustee can be said to be owner of the property in the real sense of the term. The legal ownership which vests in the trustees is for the purpose of the trust or for beneficial enjoyment by others and for administration of the provisions of the trust. Thus, it is clear that the property of trust vests in the trustees in a limited sense and to be managed for subserving the objects of the trust. This would make the rights and obligations of `ordinary trustee' and `hereditary trustee' as same. Therefore, only difference in respect of the ordinary trustee and the hereditary trustee can be said to be in the method or mode of appointment. Even the hereditary trustee is required to be recognised by the office of the Charity Commissioner and necessary entries are required to be made in the trust register maintained under section 17 in that respect and any change of trustee to be recorded in view of section 22. Therefore, I reject the contention raised on behalf of the respondents that there is a difference between the ordinary trustee and a hereditary trustee.
IN THE HIGH COURT OF BOMBAY

First Appeal No. 535 of 1975

Decided On: 22.02.1993

 Abaji Daulata Yadav  Vs. Dhondiram Jagedevrao Yadav and Ors.


Hon'ble Judges/Coram:
P.S. Patankar, J.

Citation: 1994(3) Bom CR60.
Read full judgment here: Click here
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