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1969 Supreme(Online)(Bom) 4

BOMBAY HIGH COURT
UNKNOWN, J
Central Bank Executor and Trustee Co. Ltd v. Hormusji Nusserwanji Madraswalla
Originating Summons



Advocates:
For the Appellants/Petitioners: Mr. Laud, Mr. Nariman
For the Respondents: Mr. Dubash

A trust deed can only be revoked if such power is expressly reserved; failure to include revocation terms in a subsequent deed negates such a power.

Headnote:In this Originating Summons, the plaintiff sought clarification on the distributions defined in a Deed of Settlement executed in 1942. The court found that revocation powers stated in clause 18 allow modifications but observed that the 1958 deed's terms did not maintain revocation ability. The court ruled the 1958 deed could not be revoked as it lacked explicit revocation powers. Costs to be paid out of the trust estate.

Table of Content
1. clarification of the deed of settlement's stipulations. (Para 1 , 2 , 3)
2. revocation and modification of trust provisions. (Para 4 , 5 , 6)
3. trust revocation powers require explicit drafting. (Para 7 , 8 , 9)
4. court's final ruling on trust administration. (Para 10 , 12)

1. This is an Originating Summons taken out by the plaintiff - Co. which is the present Trustee of the Deed of Settlement executed by one Maneckji Ratanji Bharucha on 22nd April 1942 for the determination of certain questions that have been framed in it.

2. By clause 2 of the said Deed of Settlement dated 22nd April 1942, the settlor provided that the net income of the trust estate was to be paid by the Trustees to himself for life. By clause 4 thereof, it was provided that from and after the death of the Settlor, the Trustees were to pay the net income to the Settlor's sister Banubai, if she be then living, for the term of her natural life. Clause 5 of the said Deed provided that, from and after the death of the said Banubai, or in case she predeceased the Settlor then, on the death of the Settlor, the Trustees were to divide the Trust premises into two equal parts and hold them upon certain trusts thereafter specified. Clause 6 provided that one of those parts was to be held in trust for the issue of the said Banubai, but if the said Banubai died without leaving any issue, the Trustees were to hold the same upon trust to pay the net income thereof to her husband for life, and, in default of such husband, to apply the net income for the benefit of the Settlor's brother Ardeshir, if he be then alive, for his life, and, in default of the said Ardeshir, to transfer the said part of the Trust premises to the Parsi Panchayat Board at Surat for the benefit of a certain infirmary situated there. Clause 7 of the said Deed provided that the net income of the other part of the Trust premises was to be paid to the Settlor's brother Ardeshir, if he be then alive, and thereafter for the benefit of the wife and children of the said Ardeshir. Clause 8 of the said Deed provided that, from and after the death of the said Ardeshir and the said Banubai, the Trustees were to hold the said Trust premises upon certain other trusts in favour of the issue of the said Ardeshir, but if the said Ardeshir were to die leaving no issue and no widow, the said part of the Trust premises was to be transferred to the Parsi Panchayat at Surat for the benefit of a certain technical institute situated in that town. Clause 18 of the said Deed is in the following terms:
"18. The said Manekji Ratanji Bharucha (alias Gadiwala) may from time to time and at any time or times by a Deed or Deeds revocable or irrevocable or by Will or Codicil wholly or partially revoke and make void or vary all or any of the trusts, uses, powers, and provisions hereinbefore created declared and contained and by the same Deed or any other Deed whether revocable or irrevocable or by Will or Codicil declare any new or other trusts uses powers or provisions concerning the premises the trusts, uses, powers, and provisions whereof shall have been so varied or revoked as aforesaid".

3. It may be mentioned that the Settlor's brother Ardeshir died unmarried on 10th May 1956, and the Settlor's sister Banubai also died unmarried on 22nd October 1957.

4. In exercise of the power conferred by the said clause 18 of the Deed of Settlement dated 22nd April 1942, the Settlor, by a Deed of Revocation dated 15th October 1958, revoked clauses 4, 5, 6, 7, 8 and 9 of the said Deed, and declared and directed that, after his demise, the Trustees were to convert the investments representing the Trust Fund into money and divide the net amount into six equal parts which were to be dealt with in the manner laid down therein. Five of those six equal parts were directed by the said Deed of Revocation to be applied to various charitable institutions, and it is unnecessary for me to refer to the same. The sixth part of the income was di









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