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Section20
The Indian Trusts Act, 1882

Investment of trust-money

In force From 01 Mar 1882 Act 2 of 1882 As on 15 Oct 2026

Act 2 of 1882 Ministry Law and Justice Enacted 13 Jan 1882 In force 01 Mar 1882 Cited by 60 provisions

Section 20 of the Indian Trusts Act, 1882 deals with investment of trust-money. money.--Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee shall, subject to any direction contained in the instrument of trust, invest the money in any of the securities or class of securities expressly authoris The Act came into force on 01 Mar 1882.

1[20. Investment of trust-money.--Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee shall, subject to any direction contained in the instrument of trust, invest the money in any of the securities or class of securities expressly authorised by the instrument of trust or as specified by the Central Government, by notification in the Official Gazette:

Provided that where there is a person competent to contract and entitled in possession to receive the income of the trust-property for his life, or for any greater estate, no investment in any of the securities or class of securities mentioned above shall be made without his consent in writing.

Explanation.--For the purposes of this section, the expression “securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).]

Section 20, The Indian Trusts Act, 1882 (Act 2 of 1882).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 60

  1. Andaman and Nicobar Islands Cooperative Socities Regulation 1973 s. 44 Investments of funds
  2. Andhra Pradesh Labour Welfare Fund Act s. 15
  3. Bombay Labour Welfare Fund Act, 1953 as extended to Union Territory of Delhi s. 8
  4. Chit Funds Act s. 14 Utilisation of funds
  5. Chit Funds Act s. 20 Security to be given by foreman
  6. Co-operative Societies Act s. 32 Investment of funds
  7. Companies Act, 1956 No. 1 of 1956 s. 418
  8. DCS Act 2003 s. 56
  9. Finance Act s. 131 Amendment of section 20 of Act, 2 of 1882
  10. Goa Co-operative Societies Act s. 55 Investment of funds outside the business
  11. Gujarat Co-operative societies Act-1961 s. 71
  12. Gujarat Labour Welfare Fund Act s. 23

and 48 more

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 06 May 2010 KLHC010245252009

    … Clause (f) provides that the investment can be on any other security, expressly authorised by the instrument of trust or by the Central Government by notification in the official gazette or by any rule which the High Court may, from time to time prescribe in that behalf. It is clear to us that Section 20 of the Indian Trusts Act was enacted on the paramount consideration that the trust money not immediately required should be invested in safe investments. The expression 'any other security authorised by the instrument of trust or by the Central Government by notification in the official gazette or by any rule which …

    Read this order on eCourtsIndia

Questions about Section 20

What does Section 20 of the Indian Trusts Act deal with?

Section 20 of the Indian Trusts Act is headed "Investment of trust-money". [20. Investment of trust-money.--Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee shall, subject to any direction contained in the instrument of trust, invest the money in any of the securities or class of secu

How do I find court cases under Section 20 of the Indian Trusts Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Indian Trusts Act 1882 20, section 20 Indian Trusts Act 1882, section 20 of the Indian Trusts Act. People searching for it also type indian trust act section 20. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 20 of the Indian Trusts Act, and has it changed?

60 other provisions in this corpus refer back to it.

When did Section 20 of the Indian Trusts Act come into force?

Section 20 of the Indian Trusts Act, cited as Indian Trusts Act 1882 20, came into force on 01 Mar 1882, having been enacted on 13 Jan 1882. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.