TRUSTEE ACT 1936 - SECT 30
TRUSTEE ACT 1936 - SECT 30
30—Liability of trustee in respect of rents, covenants etc
(1) Where a trustee
liable as such under any instrument or agreement entered into before the
creation of the trust or before the trust became operative for or in respect
of—
(a) any
rent, covenant or agreement reserved by or contained in any lease; or
(b) any
rent, covenant or agreement payable under or contained in any grant made in
consideration of a rentcharge; or
(c) any
indemnity given in respect of any such rent covenant or agreement,
satisfies all liabilities under the lease or grant which have accrued and been
claimed as against him up to the date of the conveyance hereinafter mentioned,
and where necessary, sets apart a sufficient fund to answer any future claim
that may be made in respect of any fixed or ascertained sum which the lessee
or grantee agreed to lay out on the property demised or granted, although the
period for laying out that sum may not have arrived, then and in any such case
the trustee may convey the property demised or granted, to a purchaser,
legatee, devisee or other person entitled to call for conveyance thereof, and
thereafter—
(d) he
may distribute the estate or the residue of the estate other than the fund (if
any) set apart as aforesaid as the case may be to or amongst the persons
entitled thereto without appropriating any part, or any further part, of the
estate to meet any future liability under the said lease or grant;
(e)
notwithstanding such distribution he shall not be personally liable in respect
of any claim that may be subsequently made under the said lease or grant
except a claim for application of the fund set apart.
(2) This section shall
not—
(a)
affect the right to follow assets into the hands of any person or persons to
or amongst whom the assets may have been transferred or distributed for the
purpose of recovering payment of any amount for which the trustee is liable as
mentioned in paragraphs (a), (b) and (c) of subsection (1) of this
section:
(b)
apply where the trustee is himself an original party to such lease grant or
indemnity or a party otherwise than as trustee.
(3) This section
applies notwithstanding anything to the contrary in the will or other
instrument if any creating the trust.
(4) This section
applies to trusts created either before or after the commencement of the
Trustee Act Amendment Act 1941 .
(5) In this
section—
"lease" includes an underlease and an agreement for a lease or underlease and
any instrument giving any such indemnity as aforesaid or varying the
liabilities under the lease or underlease;
"grant" includes a grant whether the rent is created by limitation, grant,
reservation, or otherwise, and includes an agreement for a grant and any
instrument giving any such indemnity as aforesaid or varying the liabilities
under the grant;
"lessee" and "grantee" include persons respectively deriving titles under
them.