Personal liability of legal heir after death of trustee
Hi,
My late father was one of the trustees in a Private Trust along with 3 other trustees. Civil recovery suit has been filed against this trust by a company in Delhi High Court in 2004 and is still pending. In 2005 all the trustees that have been impleaded in this suit resigned from the abovestated private trust.
In this suit there is no allegation of breach of trust or any personal misconduct on part of any trustee. Further in the trust deed it is clearly stated that in case of any litigation against the trust, the trustees can indemnify themselves using the trust fund (also the abovestated private trust still exists as of today).
In 2004, a joint written statement has been filed by all 4 trustees/defendants in this suit and a common lawyer appeared for all 4 of them. In 2010, due to failure of this common defendants’ lawyer to appear on 3 consecutives dates- court declared all the defendants to be ex-parte. But after this order was passed from the next hearing date onwards the common defendants’ lawyer has appeared regularly and contested the suit for all the defendants.
About 2 yrs back - this suit was at the stage of final arguments when my late father expired and the other defendants informed the court about this. Plaintiff then moved an application – seeking legal heir details of my late father from the other defendants. But on the last date of hearing (about 2 months back) the other defendants have filed an affidavit stating that they aren’t aware of any such details.
My Queries:
1. Can the court exempt the Plaintiff from the necessity of substituting legal representatives of my late father as per CPC Order 22 Rule 4 (4) – due to the fact that my late father was declared ex parte in 2010 in this suit – although after this ex parte declaration, my late father’s lawyer has been appearing before court right till my late father’s death?
2. Can my brother - even before being impleaded in this suit as legal heir of my late father- move an application before the court for deletion of my late father’s name from this suit on the account that as per trust deed there was no personal liability of my father? Can he also attach supporting documents along with this application?
3. In case my brother gets impleaded in this suit - can he submit his written statement alongwith supporting documents – or because my father was declared ex parte at one stage of suit (though he filed the written statement), therefore my brother wouldn’t be given this opportunity and would be proceeded ex parte?
4. I read Section 30 of Indian Trusts Act 1882 and I think it states that the trustee can’t be held personally liable unless there is a question of breach of trust. Also as it is clearly mentioned in the Trust Deed that in case of any litigation against the trust, the trustees can indemnify themselves using the trust fund – can a trustee be still held personally liable for actions he took as part of his prudent duty towards the trust?
Asked 12 months ago in Civil Law