Question

    What is the trustee's liability if they commit a breach

    of trust under the Indian Trusts Act, 1882?  
    A The trustee is not liable for any breach Correct Answer Incorrect Answer
    B The trustee is personally liable to compensate the trust for the loss Correct Answer Incorrect Answer
    C The trustee is liable only if the breach was intentional Correct Answer Incorrect Answer
    D The trustee is liable only if the beneficiary files a complaint Correct Answer Incorrect Answer
    E The trustee is liable only for criminal offenses Correct Answer Incorrect Answer

    Solution

    Under Section 23 , if a trustee commits a breach of trust, they are personally liable to compensate for the loss caused to the trust property. The liability is strict, even if the breach was unintentional, provided it caused harm to the trust.  

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