Question

Under common law principles on trusts (applied in Indian jurisprudence), Mr. W transfers property valued at ₹100 lakhs to Mr. X with the following circumstances: (i) no consideration is given (gratuitous transfer); (ii) no written trust instrument is executed; (iii) the parties are not family members; (iv) no verbal declaration of beneficial ownership is made. Years later, W claims he retains beneficial interest in the property. Which of the following correctly determines W's legal entitlement?

A W has no claim because the property was transferred without conditions or written trust, indicating an absolute gift to X
B The law presumes a resulting trust in W's favour because the property was transferred gratuitously without evidence of a gift; the presumption can only be rebutted by clear evidence that X was intended to be the beneficial owner
C W's claim is valid only if the transfer was induced by fraud; otherwise, the presumption of resulting trust does not apply to gratuitous transfers
D A resulting trust cannot arise because Section 5 of the Indian Trusts Act requires written instruments for all trusts
E The presumption of advancement applies, making X the absolute owner; resulting trusts apply only to family members
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