Beneficiary's Right to Revoke Trust Prevails Over Trust Duration Clause

The court held that the sole beneficiary of a trust had the right to revoke the trust upon reaching the age of majority, despite the trust deed specifying a duration until the beneficiary turned 21. Relying on the Indian Trusts Act, which allows beneficiaries to revoke trusts if competent to contract, the court concluded that the trust ceased to exist after the beneficiary's revocation. As a result, no further assessment on the trust was permitted, and the appeals were dismissed.

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Issues:
Whether the sole beneficiary of a trust can revoke the trust before its duration.

Analysis:
The case involved a trust created in 1981 with the sole beneficiary being a minor. The trust was to be operational until the beneficiary turned 21, after which the assets were to be transferred to him. However, upon reaching the age of majority in 1984, the beneficiary revoked the trust and took over the assets, starting a business in his individual capacity. The Revenue argued that the trust should continue until the beneficiary reached 21, citing clause 2 of the trust deed. The Calcutta High Court precedent was presented, stating that a trust can be revoked with the beneficiary's consent. The Court referred to clause 78 of the Indian Trusts Act, which allows beneficiaries to revoke a trust if they are competent to contract. Despite clause 2 stating the trust's duration until the beneficiary turns 21, the Act permits revocation upon the beneficiary reaching majority. The Court agreed with the Tribunal that the trust ceased to exist after the beneficiary's revocation, concluding that no further assessment on the trust was permissible. The appeals were dismissed based on this interpretation.

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