(1) If a trustee fails to fulfill the duties required to
be fulfilled pursuant to this Chapter, the trustee shall be deemed to
have committed a breach of trust.
(2) In the event of a breach of trust pursuant to sub-section
(1), the trustee so breaching trust shall be responsible for the loss
and damage caused to the beneficiary and bear liability for the
same.
183
(3) In bearing the liability pursuant to sub-section (2), the
trustee breaching trust shall bear such profits as may be equal to the
income or profits which the trust or beneficiary would have made or
earned if the trust had not been breached.
(4) If a trust has more than one trustee, all trustees who
commit a breach of trust shall collectively bear the liability for the
loss and damage caused from such breach of trust.
(5) If, in relation to one portion of any trust, the trust is
breached, and, in relation to another portion of the trust, benefit is
derived, the trustee shall not use such benefit in the fulfillment of
his or her liability.
(6) Notwithstanding anything contained elsewhere in this
Section, the trustee shall not bear the liability for the loss and
damage caused from the breach of trust, in the following
circumstance:
(a) If the loss and damage is caused by operation of law,
(b) If the loss and damage is a result of the breach of trust
by any act done by the previous trustee or the
consequence thereof.
(7) Notwithstanding anything contained elsewhere in this
Section, any one who does any of the following acts in relation to a
trust in operation upon being incorporated in accordance with law
in force for the time being prior to the commencement of this Act
shall be deemed to have committed a breach of trust:
(a) Failing to do acts set forth in the Donative inscription,
Shilapatra of the trust or deed establishing such trust,
184
(b) Selling, disposing of, gifting, donating or pledging or
mortgaging the trust property by the trust founder or
his or her offspring or heir, except for the residual
property that can be possessed and used after making
operation as set forth in the deeds including the
Donative inscription, Shilapatra of the trust,
(c) Embezzling the movable trust property by the trustee,
except for reasonable wear and tear while using it for
the trust purpose.
(7) One who commits a breach of trust under sub-section
(7) shall be liable to action in accordance with the law in force at
the time of the commencement of this Act.