DRAFTING, PLAEDING AND CONVEYANCING

FINAL DRAFT

Project Topic

DRAFTING OF TRSUT DEED

Submitted by:
VICKY KUMAR
Roll No. - 1574
8th Semester, 4th Year, B.A.LL.B. (Hons.)

Submitted to:
Dr. B.R.N Sarma

NATIONAL LAW UNIVERSITY, PATNA,

 ACKNOWLEDGEMENT

I am thankful to, Dr. B.R.N Sarma, Assistant Professor of Law Assistant Professor of
Law, CNLU, Patna, who allotted me this research topic and guided me with his ideas, that
how to pursue this research topic.

I would also like to express my gratitude to the University Library, from where I had
managed to get the relevant books and web materials, which helped me in the completion
of this research topic.

At the end, I would like to thank my parents and few friends, who rendered their valuable
support for the completion of this research topic.

VICKY KUMAR
Roll No. 1574
8th Semester
4th Year, B.A.LL.B. (Hons.)

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 TABLE OF CONTENT

ACKNOWLEDGEMENT ................................................................................................................ II

TABLE OF CONTENT ................................................................................................................. III

INTRODUCTION ........................................................................................................................... 1

TYPES OF TRUST DEEDS ...................................................................................................... 4

ESSENTIAL ELEMENT OF TRUST DEED ........................................................................................ 7

Acceptance of Trust ............................................................................................................... 7

Registration ............................................................................................................................ 8

A Specimen Deed of Revocation of a Trust .......................................................................... 9

DRAFTING OF FORMAT.............................................................................................................. 10

CONCLUSION............................................................................................................................. 20

BIBLIOGRAPHY ......................................................................................................................... 21

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 INTRODUCTION

A trust is defined in the Indian Trusts Act, 1882 as an obligation annexed to the ownership of
property, and arising out of a confidence reposed in and accepted by the owner, or declared
and accepted by him for the benefit of another or of another and the owner.1

The person who reposes or declares the confidence is called the ‘author of the trust’. The person
who accepts the confidence is called the ‘beneficiary’.

The subject matter of the trust is called the ‘trust property’ or the ‘trust money’. The person or
persons who manages/manage the trust property or trust money is/are called the
‘trustee/trustees’ of the trust. The author of the trust himself or any other person can be the
trustee of the trust.

The beneficial interest or interest of the beneficiaries is/are his/their right(s) against the trustee
as owner of the trust property; and the instrument by which the trust is declared is called the
‘instrument of trust’.The breach of any duties imposed on the trustee by any law for the time
being in force is called ‘breach of trust’.

The person creating the trust must be legally competent to contract and a trust may be created
on behalf of a minor with the permission of the Civil Court of the original jurisdiction.2

Every person capable of holding property may be a trustee. But if the trust involves exercise of
discretion then he cannot execute it unless he is competent to contract.3

Every person capable of holding property may be a trustee. But if the trust involves
exercise of discretion then he cannot execute it unless he is competent to contract.4

Definition of Trust

1
(Section 3), Indian Trusts Act, 1882.
2
(Section 7), Indian Trusts Act, 1882.
3
(Section 10), Indian Trusts Act, 1882.
4
(Section 10), Indian Trusts Act, 1882.

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As per section 3 of Indian Trust Act 1882 “A Trust is an obligation annexed to the ownership
of the property, and arising out of a confidence reposed in and accepted by the owner, or
declared and accepted by him, for the benefit of another, or of another and the owner”

Advantages of a Trust

1. A trust can be formed for Charitable/Religious purposes which enables the settlor to
discharge his sentiments for public benevolence,amelioration of human
suffering,advancement of knowledge etc., in a regulated and proper way.

2. From taxation point of view, a charitable or religious trust enjoys several tax
exemptions and benefits

3. Donations to eligible charitable institutions are also deductible from taxable income of
the donor. All the Industrial Big wigs have formed its own charitable trust, to channelize
their donations for public benevolence through that trust, which remains under their
own control. This enables them to apply the donations in a regulated manner according
to their own discretion and still avail of the tax exemptions, both in respect of the
donations made and also the income of the trust.

4. A trust can also be formed for the welfare of family members and relatives dependent
upon the settlor. Besides,there is an ample scope of tax planning through private /family
trusts.

5. The Institution of a trust enables the settlor to preserve his property from division and
transfer to outsiders.

Every trust of which the purpose is unlawful is void. And where a trust is created for two
purposes, of which one is lawful and the other unlawful, and the two purposes cannot be
separated, the whole trust is void. Any property which is transferable can be a subject of a
trust whether it be immovable or movable. But more beneficial interest not subsisting trust
cannot be made a subject of the trust. The beneficiary of the trust may be any person
capable of holding property. Such person may be a sentient being or a juristic person or
even a deity.5

5
http://www.icsi.in/Study%20Material%20Professional/NewSyllabus/DAP.pdf last accessed on 29th February,
2017 at 03:16 PM.

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 Section 4 of the Indian Trusts Act, 1882 provides that the object of the trust must be lawful.
The purpose of the trust is lawful unless it is:6

(i) forbidden by law, or

(ii) is of such a nature that, if permitted, it would defeat the provisions of any law, or
(iii)is fraudulent, or
(iv) involves or implies injury to the person or property of another, or
(v) the Court regards it as immoral or opposed to public policy.

OBJECTIVE OF THE STUDY

The researcher is going to research the above topic with some of the objectives which is
sited below:

1. To ascertain certain essential information’s shall be incorporated to validate a deed.

2. Draft a sample trust deed.
HYPOTHESIS
There are certain advantages attached with the formation of a trust deed.
RESEARCH METHODOLOGY
The researcher will be using doctrinal mode of research.
SOURCE OF DATA
1. Secondary Source: Websites.
LIMITATIONS OF THE STUDY
The researcher cannot opt for non-doctrinal mode of research he will have to be
dependent upon only doctrinal method which would include primary and secondary
sources.

6
Section 4 of the Indian Trust Act, 1882.

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 TYPES OF TRUST DEEDS

PRIVATE TRUST

A trust is called a Private Trust when it is constituted for the benefit of one or more individuals
who are, or within a given time may be, definitely ascertained. Private Trusts are governed by
the Indian Trusts Act 1882. A Private Trust may be created inter vivos or by will. If a trust in
created by will it shall be subject to the provisions of Indian Succession Act, 1925.

The following are the requisites for creation of a Trust:

 The existence of the author/settlor of the Trust or someone at whose instance the Trust
comes into existence and the settlor to make an unequivocal declaration which is
binding on him.

 There must be a divesting of the ownership by the author of the trust in favour of the
trustee for the beneficial enjoyment by the beneficiary.

 A Trust property.

 The objects of the trust must be precise and clearly specified.

 The beneficiary who may be particular person or persons.7

Unless all the above requisites are fulfilled, a trust cannot be said to have come into existence.

PUBLIC TRUST

A trust is called as Public Trust when it is constituted wholly or mainly for the benefit of Public
at large, in other words beneficiaries in the Public trust constitute a body which is incapable of
ascertainment. The Public trusts are essentially charitable or religious trusts and are governed
by the general Law.

The provisions of Indian Trusts Act do not apply on Public Trusts. Like the private trusts,
public trusts may be created inter vivos or by will. The Indian Trusts Act does not apply to
public trusts which can be created by general law.

7
V.K.DEWAN, Drafting of Deeds and Documents, 2nd Edition, 2011.

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There are three certainties required to create a charitable trust are as follows

 a declaration of trust which is binding on settlor,

 setting apart definite property and the settlor depriving himself of the ownership
thereof, and

 a statement of the objects for which the property is thereafter to be held, i.e. the
beneficiaries.8

It is essential that the transferor of the property viz the settlor or the author of the trust must be
competent to contract. Similarly, the trustees should also be persons who are competent to
contract. It is also very essential that the trustees should signify their assent for acting as trustees
to make the trust a valid one9.

When once a valid trust is created and the property is transferred to the trust, it cannot be
revoked, If the trust deed contains any provision for revocation of the trust, provisions of
sections 60 to 63 of the Income-tax Act will come into play and the income of the trust will be
taxed in the hands of the settler as his personal income.

The difference between a public and private trust is essentially in its beneficiaries, A private
trust’s beneficiaries are a closed group, while a public trust is for the benefit of a larger cross-
section having a public purpose. However, there may be trusts which are a blend of both and
are known as Public-cum-Private Trusts.10

WHAT ARE PUBLIC-CUM-PRIVATE TRUSTS :

There may be certain trusts whose part of the income may be applied for public purposes and
a part may go to a private person or persons, Such trusts are known as Public cum Private
Trusts. Such trusts, in respect of the portion of the income going to private person or persons
are assessable as private trusts and in respect of that portion of the income which is applied for
public purposes, they shall be eligible for exemption under section 11 provided these trust are
created before the commencement of Income-tax Act, 1961 i.e. before 1/4/1962. Public-cum-
private created on or after 1-4-1963 shall not be eligible for exemption u/s 11.

8
Ibid.
9
ABHA JAISWAL, Guide to Deeds and Documentation, 2nd Edition, 2013.
10
Ibid.

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All kinds of trusts whether pubic or private are subject to more or less the same governing
principles. Duties and disabilities of trustees are the same. There are, however, certain pints of
difference between public and private trusts. Rules against perpetuity, which are applicable to
all private trusts, are considerably modified in reference to public trusts. 11

Secondly, where the object of a public trusts becomes obsolete because people are no longer
in need of that kind of charity, the objects of the trust may be varied so as so include things
which are currently of public utility. Thirdly, the enforcement of public trusts is in the hands
of public bodies, like the Attorney-General. Fourthly, for the encouragement of public welfare
and charitable services by private organisations, benefits of tax concessions have been extended
to such organizations. 12

Lastly, a private trust may fail for uncertainty of object, but a public trust need not be the victim
of such uncertainty. In such cases the author of the trust is only interested in public service.
The type of service does not matter much to him. He can leave that even at the discretion of
trustees. So long as charity of one kind or the other can be carried on, the trust can go on. The
court or other relevant authority can order a scheme of dedication.13

11
Supra note 9.
12
Ibid.
13
Ibid.

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 ESSENTIAL ELEMENT OF TRUST DEED
An instrument of trust is drafted either as a deed poll or as a regular deed between the
author of trust and the trustee. Where trustees are strangers and a transfer of property is
involved, it is better to draft the deed as a deed between the author of trust and the
trustees. Where the author is to be the trustee himself and the deed requires a mere
declaration of trust, it is drafted as a deed poll. No specific words are necessary, but,
whatever the words used, the deed should contain with reasonable certainty the matters
mentioned under the heading ‘Creation of Trust’.14

While drafting a trust deed, it be seen that every clause in the deed is clear in its meaning.
If there is any reference to any article, documents, rules, statutory Acts etc., the same
are properly applied out. In case reference to these is to be repeated in the deed it is
better to first define them and use the abbreviation in the deed subsequently.

The most important and vital part of a trust is the expression of an intention to create a
trust which should be expressed in the deed in unequivocal language and with reasonable
certainty. No particular or technical words are necessary but the words used must be
definite and unequivocal. The intention is expressed clearly in the recitals of the deed
and in the operative part also. If the trustee is a stranger the property is transferable to
him “upon trust”. If the author is himself the trustee, he declares in the operative part
that he “dedicates” or “sets apart” the property in trust for such and such purpose and
constitutes himself as the trustee.15

Different directions are given to the trustees by the author as to the manner in which the
trust is to be worked. These are the conditions and provisions of the trust and vary in
different kinds of trusts according to the circumstances. These conditions should be
clearly incorporated in the trust deed. If the situation so warrants, provision for the
appointment of new trustees should also be made in the deed.16

ACCEPTANCE OF TRUST

Acceptance of trust by trustee may be either express, e.g. by executing the deed of trust
or by verbal assent, or inferred from conduct, e.g., by entering into possession of the

14
PK MAJUMDAR, Guide to the Deeds, 5th Edition, 2015.
15
Ibid.
16
Ibid.

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property and on the duties as trustee. But it is always safer to have the deed of trust
executed by the trustee also.

REGISTRATION

As per section 5 of the Indian Trusts Act, a private Trust in relation to an immovable property
must be created by a non-testamentary instrument in writing, signed by the author of the trust
or the trustee and registered(under Section 17 of Indian Registration Act) . Thus,registration of
a trust is necessary when it is declared by a non-testamentary instrument. This registration
would still be required, even if the instrument declaring the trust is exempt from registration
under the Indian Registration Act. In case of a Private Trustdeclared by a will,registration
will not be necessary, even if it involves an immovable property. Registration will not be
required, of a trust in relation to movable property. In case of Public Trust, whether in relation
to movable property or an immovable property and whether created under a will or inter vivos,
registration is optional but desirable. There are two conditions for registration of a trust
namely :17

1. An application to be made for registration in the prescribed form (Form 10A) and in
the prescribed manner to the Commissioner of Income tax either before 1st July 1973
or within one year from the date on which the trust is created whichever is later

2. Where the total income of the trust or institution without giving effect to the provisions
of section 11 & 12 exceeds 50,000/- in any previous year, the accounts of the trust or
institution for that year has to be audited by a chartered accountant or any other
accountant entitled to be appointed as an auditor of companies. The report of audit
should be in Form No. 10B prescribed in the Income-tax Rules, 1962 and said audit
report has to be furnished along with the return of income.18

The following are the requisites for creation of a Trust:

1. The existence of the author/settlor of the Trust or someone at whose instance the Trust
comes into existence and the settlor to make an unequivocal declaration which is
binding on him.19

17
HARGOPAL , Hargopal’s Legal Draftsman-A Comprehensive guide to Deeds and Documents, 13th
Edition,2013.
18
Ibid.
19
Ibid.

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 2. There must be a divesting of the ownership by the author of the trust in favour of the
trustee for the beneficial enjoyment by the beneficiary.

3. A Trust property.

4. The objects of the trust must be precise and clearly specified.

5. The beneficiary who may be particular person or persons.20

A SPECIMEN DEED OF REVOCATION OF A TRUST

6. THIS DEED is made on the...26th… day of…APRIL …2016…by A,B etc.

(hereinafter called “the Settlor”) of the one part AND C,D etc. (hereinafter called
“the Trustee”) of the other part.
7. WHEREAS by a deed of trust dated…20/04/2016...the Settlor transferred him
property specified therein to the Trustee upon trust to sell the same and with the
proceeds of the sale to pay the debts due from the Settlor to the several creditors
named in the said deed;
8. AND WHEREAS the trust created as aforesaid has not yet been communicated
to any of the aforesaid creditors; AND WHEREAS the Settlor now desires to
revoke the said trust and to make other arrangements for the discharge of his
aforesaid debts.
9. NOW THIS DEED WITNESSES that the Settlor hereby revokes the trust
created by the aforesaid deed of trust.
10. IN WITNESS WHEREOF parties have signed this deed on the..26th.. day
of…APRIL 2016…
11. Signed by…A…
12. In the presence of…C…
13. and of...D.21

20
MG GURHA, A Guide to the Deeds, 8th Edition, 2012.
21
Ibid.

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 DRAFTING OF FORMAT

DRAFT TRUST DEED FOR

BHARAT VIKAS PARISHAD / BVP _________________________ PRANT CHARITABLE TRUST

THIS INDENTURE OF TRUST is made at _________ on this ___ day of _____ 20___
between:-

(1) SHRI ____________ being present Hon. Secretary of the BHARAT VIKAS PARISHAD
_____________________________PRANT, residing at _______________________
hereinafter referred to as the “THE SETTLOR” of the FIRST PART

AND

1) SHRI ____________ residing at_________________

2) SHRI ____________ residing at_________________

3) SHRI ____________ residing at _________________

Present Hon. President, Hon. Secretary and Hon. Treasurer respectively of the BHARAT
VIKAS PARISHAD __________________________ PRANT by virtue of their office herein
after referred to collectively as EXECUTIVE TRUSTEES &

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4) SHRI ____________residing at _________________

5) SHRI ____________residing at__________________

6) SHRI ____________residing at _________________

7) SHRI ____________residing at_________________

All are members of Bharat Vikas Parishad, hereinafter referred collectively as “TRUSTEES”
and both together of the “SECOND PART”.

WHEREAS, Bharat Vikas Parishad is a Society duly registered under the Societies
Registration Act, 1960, having its present Central Office at Bharat Vikas Bhavan, Pritampura
Delhi 110034, having affiliated area wise mutual associations called Branches organized in
group in accordance with geographical areas called Prants both as defined in its Constitution;

WHEREAS the BHARAT VIKAS PARISHAD, _______________________ PRANT has

been functioning as one of the mutual association affiliated with BHARAT VIKAS
PARISHAD, CENTRAL OFFICE, DELHI which has been established and functioning in
______________________ (Prant Area) as demarcated by Central office of BHARAT VIKAS
PARISHAD, Delhi from time to time.

WHEREAS one of the objects of the BHARAT VIKAS PARISHAD ___________________

PRANT is to do all lawful acts, deeds for charitable purpose, including relief to the poor,
education, medical relief to general public in the demarcated area of the Prant and any other
area as may be decided from time to time within India and the advancement of any other object
of general public utility for the benefit of all class, colour or creed.

WHEREAS nothing contained in this deed shall be deemed to authorise the Board of Trustees
to do any act which may in any way be construed statutory modifications thereof and all
activities of the Trust shall be carried out with a view to benefit the public at large, without any

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profit motive and in accordance with the provisions of Indian Trust Act, 1982, The Income tax
Act, 1961 or any statutory modification thereof.

WHEREAS by a resolution passed in Council Meeting of the BHARAT VIKAS PARISHAD,

_____________________________ PRANT held on _________ where it was resolved that
the sum of Rs.1,000/- from BHARAT VIKAS PARISHAD, _______________________
PRANT to rest in

1. SHRI __________________________ 2. SHRI __________________________

3. SHRI __________________________ 4. SHRI __________________________

5. SHRI __________________________ 6. SHRI __________________________

7. SHRI __________________________

who are hereby appointed as “Board of Trustees” of the said BHARAT VIKAS
PARISHAD/BVP, _____________________________ PRANT CHARITABLE TRUST
from the date of signing of this indenture and all the accretions thereto received by them by
way of donations or otherwise.

WHEREAS the SETTLOR has requested the said Board of Trustees referred to the above
parties of the second part, which they have agreed to do and testify to the same by executing
these presents; AND

WHEREAS prior to the execution of these presents THE SETTLOR has handed over a cheque
no. _______ dated ___________ drawn on ___________ Bank, ________ Branch
of Rs.1,000/-(Rupees one Thousand only) from Prant Bank Account to the Trustees.

WHEREAS the parties hereto are desirous of executing a formal Declaration of Trust for
purpose upon and for which the said fund is held by the Trustees in the manner hereinafter
appearing;

WHEREAS it is the intention of the BHARAT VIKAS PARISHAD,

____________________________ PRANT that upon execution of these presents the Trustees
are authorised to collect further or other funds for carrying out of the said Charitable Objects
of the BHARAT VIKAS PARISHAD ______________________________ PRANT
hereinafter mentioned and add the same to the BHARAT VIKAS PARISHAD/BVP
_______________________________ PRANT CHARITABLE TRUST with the intent that

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the same should be utilised for the benefit of persons as per the Objects of the Trust
without any distinction of class, colour or creed and the same shall not be restricted to any
particular community.

NOW THIS DEED WITNESSETH AS FOLLOW: -

1. NAME:-The name of the Trust shall be “BHARAT VIKAS

PARISHAD/BVP _______________________ PRANT CHARITABLE TRUST.

2. REGISTERED OFFICE: The Registered Office of the Trust shall be at

_____________________ or as may be decided by Trustees from time to time.

3. AFFILIATION: - This Trust will be affiliated with Bharat Vikas Parishad, Central Office,
Delhi and always work according to its direction.

4 MAIN OBJECTS :- The main objects of the Trust are:-

a) To do all acts for eradicating hunger and poverty and malnutrition, promoting preventive
healthcare and sanitation and making available safe drinking water.
b) To promote education; including special education and employment enhancing vocation
skills especially among children, women, elderly and the differently abled and livelihood
enhancement projects.
c) To promote gender equality; empowering women; setting up homes and hostels for women
and orphans; setting up old age homes; day care centres and such other facilities for senior
citizens and economically backward groups.
d) To ensure environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agro forestry, conservation of natural resources and maintaining quality of
soil, air and water.
e) To make contribution to Prime Minster’s National Relief Fund or any other fund set up by
the Central/State Government or any other recognised body or institution for socio-
economic development and relief and welfare of the scheduled castes, the scheduled tribes,
other backward classes, minorities and women.
f) To do all acts for protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of arts; setting up public libraries;
promotion and development of traditional arts and handicrafts.

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g) To take measures for the benefits for armed forces veterans, war widows and their
dependents.
h) To promote and provide training for Rural sports, National recognized sports and
Paralympics sports and Olympic sports.
i) To make contribution to funds provided to technology incubators located within
academic institutions which are approved by the Central/State Government.
j) To take up the Rural Development Projects.
k) To carry on any such project or programme as may be prescribed by the Central/State
Government in this regard.
l) To establish and run breeding centres, medical stores, gaushalas, panjrapole, research and
development centres, training centres, diagnostic centres, hospitals, clinics, libraries and
publications.
m) To provide medical relief to the poor, blind, disabled, or otherwise deserving persons.
n) To provide free accommodation and assistance to the pilgrims, patients and travellers.
o) To advance and promote Indian culture, literature and to inculcate patriotism especially
amongst children.
p) To grant donations to any person or institution devoted to public or for charitable purposes,
co-operate and assist (Including funding) any institution, individual or a group of
individuals with like-minded aims and objectives.
q) To lawfully acquire by purchase, gift or otherwise any movable or immovable
property/properties for the purpose of the Trust and/or to invest the Trust funds in Bank
deposits or other lawfully permitted securities.
r) To sell, lease or otherwise transfer any of the properties whether movable or immovable of
the Trust, which are not of any immediate requirement for the Trust and utilize the proceeds
for the purposes of the Trust after taking necessary approvals as may be required under the
law.
s) To appoint or employ any person or persons or other agency to carry on the objects of the
Trust and to suspend, dismiss or take other disciplinary action against any of them.
t) To expend lawfully any money belonging to the Trust for the purpose of the Trust.

5. NUMBER OF TRUSTEES: - The maximum number of Trustees constituting the Board

of Trustees will be 11 (Eleven only) and at any time the minimum number of such Trustee will
not be less than 5 (Five). Presently there shall be 7 (seven) such Trustees.

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6. NAME OF BOARD: - All the Trustees of this Trust shall collectively be called as “Board
of Trustees” and executive Trustee will be president, secretary, treasurer respectively of this
Trust.

7. PERMANENT INVITEES TO TRUST MEETINGS: - National and Zonal Office Bearers

of the Bharat Vikas Parishad for the time being residing in geographical area of the Prant shall
be permanent Invitees to all the Trust meetings and will act as advisors in addition to the
Trustees.

8. ELECTION OF TURSTEES: - Every 3 (three) years all the 4 (four) TRUSTEES will retire
and in their place new Trustees will be elected by the Prant Council of the BHARAT VIKAS
PARISHAD _______________________________ PRANT. The retiring Trustees shall be
eligible for re-election. All the Trustees have to be members of Bharat Vikas Parishad. Other
three EXECUTIVE TRUSTEES will be ex-officio by virtue their office at Prant level namely
Hon. President, Hon. General Secretary & Hon. Treasurer and these will retire as per change
in office bearers at Prant level.

However, it is clarified that any Trustee may continue to be a Trustee for a maximum period
of six months after his tenure expires or till the time he is re-elected or a new person is elected
to replace him, whichever happens earlier.

9. ADDITIONAL TRUSTEES: -

The PRANT with the approval of its Council may appoint Additional Trustees. However, that
the total number of Trustees on such appointment shall not exceed Eleven and fall below five.

10. CASUAL VACANCY :- If any of the Trustees of these presents dies or resides out of
India for a continuous period of more than six months or retires or desires to be discharged or
refuses or becomes unfit or incapable to act in the Trust of these presents or ceases to be a
member of the BHARAT VIKAS PARISHAD or become s undischarged insolvent then it
shall be lawful for the Executive committee of the BHARAT VIKAS PARISHAD
__________________________________ PRANT to fill casual vacancy of Trustee or
Trustees as per clause no.5 of these presents for remaining period of that vacancy.

11. REMOVAL OF A TRUSTEE: - A Trustee may be replaced or removed by ¾ majority of

the members present and voting at the Council Meeting of the BHARAT VIKAS PARISHAD

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____________________________ PRANT called specially for this purpose by giving 15 days
clear notice in writing to the eligible members of the Prant.

12. POWER TO BORROW: -The Board of Trustees, with the approval of three fourth of the
total number of members present & voting at council meeting of the
__________________________________ Prant, duly convened for the purpose, may borrow
money from banks or other credit institutions or individuals at such interest and for such period
and on such terms, with or without security of movable properties of the Trust as the Board of
Trustees may think fit and to secure the repayment thereof with interest, by mortgage of the
Trust properties or by bonds, promissory notes, bills and other negotiable securities or by issued
of debentures after taking necessary approvals as may be required under the law.

13. The Board of Trustees by a Resolution duly passed in its Meeting or by passing Resolution
through Circulation may authorise any one or more Trustees to execute any documents for and
on behalf of the Trust.

14. MANAGEMENT & MEETING: - The Board of Trustees shall meet at least once in three
months or as often as necessary with minimum 5 days prior notice. The Trustees may from
time to time frame Rules for the conduct and regulations of the meetings of Trustees. In the
absence of such Regulations:-

(a) Three or 1/3 whichever is higher of Trustees constituting Board of Trustees shall form a
quorum for a meeting of the Board of Trustees. If required quorum is not present, the meeting
shall stand adjourned for half an hour to the same day & place to discuss the same agenda and
the members present may transact the business for which the meeting is called for. In such
adjourned meeting, the members present form the quorum.

(b) All matters will be decided mutually by the Board of Trustees with majority vote. Each
one will have one vote in the meeting.

(c) Resolution passed without any meeting of the Board of Trustees but by Circulation
thereof and evidenced in writing under the hands of majority of the Trustees shall be as valid
and effectual as a Resolution duly passed at a meeting of Trustees.

(d) In case of any difference between the Trustees, direction will be obtained in writing from
Central Office of Bharat Vikas Parishad, Delhi and these directions will prevail.

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(e) In case central office of Bharat Vikas Parishad observes that Trust is not working
according to its directions, rules, regulations, than it may replace all the Trustees or such
Trustee/s of the Trust as it may deem necessary for the balance period or till new elected
Trustees take over.

15. ANNUAL ACCOUNTS:-The Annual Accounts of the Trust shall be closed every year on
the 31st March and the first close of accounts shall be on the 31st March, 20____. The
Statement of Accounts as prepared by Board of Trustees for each year, duly audited by a firm
of Chartered Accountant appointed by the Council of the Prant. The Statement of Accounts
shall be placed before an Annual Council Meeting of the Prant within six months from the
closing of the accounting year /period.

16. BANK ACCOUNT: - The Bank Account/s of the Trust shall be maintained with a schedule
bank or banks to be decided by the Board of Trustees and shall be operated jointly by the Ex-
officio Hon. Treasurer Trustee and any two of the remaining Board of Trustees.

17. INVESTMENT:-The Board of Trustees shall be accountable only for such moneys, stocks,
shares and funds as shall actually come into their hands. The investment of Trust shall be made
as per the applicable laws.

18. The Trustees may appoint such assistant, staff, and professionals or may engage
contractors or casual labourers as they deem necessary from time to time to help them in the
conduct of the affairs of the Trust and shall pay them such salaries and allowances,
remuneration, charges or wages as are deemed necessary, out of the Trust Funds.

19. No act or Resolution of the Board of Trustees shall be invalid merely by reason of there
being one or more vacancies in the Board of Trustees.

20. POWER TO MAKE BYE-LAWS:-The Board of Trustees may from time to time make
and prescribe additional rules and bye-laws for regulating the working of the Trust and may
also from time to time with the approval of three fourth of the total members of the Prant
present at a Council Meeting duly convened for the purpose (fractions rounded off to the
nearest number) modify alter or amend such rules or bye-laws. However, they shall in no way
alter or contravene the main objects of the Trust

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21. It is hereby expressly declared that the Trust hereby created shall be irrevocable for all time
and THE SETTLOR hereby declare that he has relinquished, disclaimed, and surrendered all
his/her rights or power if any, which he had.

22. The Trustees shall be indemnified against all losses and liabilities lawfully incurred during
the administration of the Trust.

23. Any Trustee shall be answerable and accountable for his/her own acts, receipts, wilful
negligence or defaults.

24. Any Trustees may for the time being be reimbursed, paid and discharged out of the Trust
Funds all expenses incurred for the Trust or in exercise of powers of these presents, but Trustees
will not be entitled to get any remuneration.

25. The Income as also corpus of the Trust fund shall be applied and be applicable only to or
for such public charitable purposes and objects, and subject to such conditions and limitation
as may form time to time be laid down in the Tax Laws.

26. ALTERATION:- Alteration to this presents other than in main objects as per clause 4
herein above can be made with the approval of 3/4th majority of the members present at the
Council Meeting of the PRANT subject to approved in writing by Central office of Bharat
Vikas Parishad, Delhi subject to Laws of the State as may be applicable.

27. AMALGAMATION:- If PRANT Council Meeting decide with 3/4th majority subject to
approval in writing from Bharat Vikas Parishad Central Office, it may amalgamate with any
other charitable Trust having similar objects subject to the applicable law.

28. WINDING UP: - If in the event of winding up or dissolution of the Trust there remains
any excess of assets after satisfaction of its debts and liabilities, such excess of assets shall be
transferred to any institution or Trust having objects of a charitable nature as decided by Prant
Council of Bharat Vikas Parishad_____________________ as per written direction from
Bharat Vikas Parishad central office, Delhi subject to the applicable laws.

29. Any dispute or legal proceeding arising in connection with or against the Trust shall be
subject to the ______________________ Jurisdiction.

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IN WITNESS WHEREOF the THE SETTLOR and Trustees have hereunto set their respective
hands the day and the year first above written.

SIGNED AND DELIVERED by the

Within named THE SETTLOR-

Name:

In the presence of

Name: Name:

SIGNED AND DELIVERED by the

Name: Name: Name:

Trustee Trustee Trustee

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 CONCLUSION
A trust is defined in the Indian Trusts Act, 1882 as an obligation annexed to the ownership of
property, and arising out of a confidence reposed in and accepted by the owner, or declared
and accepted by him for the benefit of another or of another and the owner. (Section 3) The
person who reposes or declares the confidence is called the ‘author of the trust’. Some seminars
and real estate brokers are telling people about investing in trust deeds. And while some
investors are indeed realizing such bountiful returns, trust deeds are a risky endeavour for the
average person. There's the promise of a nice return, but there's also the risk of the investment
being wiped out by declining property values or a borrower who just doesn't pay.

A trust is, in effect, the gift by the author of property or an interest in property to a person or
institution (the beneficiary) by or through the intervention of trustee. The trust property vests
in the trustee and he holds it for the benefit of the beneficiary and cannot use it for his own
benefit. A ‘trust’ is a confidence and the confidante is the trustee. His position is fiduciary vis-
à-vis the cestui que trust (beneficiary). In a trust the author vests the property in the trustee
charging him to utilise it or the income or profits arising there from for the benefit of the
beneficiary.

Different directions are given to the trustees by the author as to the manner in which the trust
is to be worked. These are the conditions and provisions of the trust and vary in different kinds
of trusts according to the circumstances.

These conditions should be clearly incorporated in the trust deed. If the situation so warrants,
provision for the appointment of new trustees should also be made in the deed.

Finally, we now very well know that Drafting is an Agreement arising out of contracts. Drafting
of deed of trust should be always done abiding all the requisites so as to make it fair as we
should always “Make fair agreements and stick to them, There is nothing more likely to start
disagreement among people or countries than an agreement.”

“As far as the practical nuances relating to drafting of deed of trust is concerned, it can be stated
that its basic purpose to eliminate the possibility of furnishing false material facts, if false fact
is furnished it invites penal consequences. The researcher has drafted model formats and while
drafting them the basic requirements have been incorporated in them."

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 BIBLIOGRAPHY

Books:

 V.K.DEWAN, Drafting of Deeds and Documents, 2nd Edition, 2011.

 ABHA JAISWAL, Guide to Deeds and Documentation, 2nd Edition, 2013.

 PK MAJUMDAR, Guide to the Deeds, 5th Edition, 2015.

 HARGOPAL , Hargopal’s Legal Draftsman-A Comprehensive guide to Deeds and

Documents, 13th Edition,2013.

 MG GURHA, A Guide to the Deeds, 8th Edition, 2012.

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