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The Trusts Act, 1882

( ACT NO. II OF 1882 )

Chapter III


Non-liability for co-trustee’s default
26. Subject to the provisions of sections 13 and 15, one trustee is not, as such, liable for a breach of trust committed by his co-trustee:
Provided that, in the absence of an express declaration to the contrary in the instrument of trust, a trustee is so liable,-
(a) where he has delivered trust-property to his co-trustee without seeing to its proper application:
(b) where he allows his co-trustee to receive trust-property and fails to make due enquiry as to the co-trustee's dealing therewith or allows him to retain it longer than the circumstances of the case reasonably require:
(c) where he becomes aware of a breach of trust committed or intended by his co-trustee, and either actively conceals it or does not within a reasonable time take proper steps to protect the beneficiary's interest.

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Ministry of Law, Justice and Parliamentary Affairs