Lawful purpose in trusts: unlawful or inseparable mixed purposes render the trust void and invalid. A trust is valid only for a lawful purpose; a purpose is unlawful if it is forbidden by law, defeats any law, is fraudulent, involves or implies injury to ... Summary
Referred In :
Prohibition Of Benami Property Transactions Act, 1988
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Lawful purpose in trusts: unlawful or inseparable mixed purposes render the trust void and invalid.
A trust is valid only for a lawful purpose; a purpose is unlawful if it is forbidden by law, defeats any law, is fraudulent, involves or implies injury to person or property, or is deemed immoral or against public policy. Any trust with an unlawful purpose is void, and if a trust has both lawful and unlawful inseparable purposes, the whole trust is void. For immovable trust property abroad, "law" includes the foreign law governing that property.
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