Differentiate between Public Trust and Private Trust.

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
Differentiate between Public Trust and Private Trust.

Answer & Explanation:

(a) Identification of the beneficiaries of the Trust is a simple way to differentiate between a public and a private trust. If the beneficiaries make up a large or substantial body of public, then the trust in question is public. A public trust exists "for the purpose of its objects, the members of an uncertain and fluctuating body," and is managed by a board of trustee. If, however, the beneficiaries are a narrow and specific group such as the employees of a company, then the trust is private. (b) In a Public Trust, the interest is vested in an uncertain and fluctuating body. They are the general public or class thereof. In a Private Trust, beneficiaries are definite and ascertained individuals. (Supreme Court in Deoki Nandan v. Murlidhar 1957 AIR 133 1956 SCR 756 ) (c) Their domains are different; public trusts have larger and wider domain whereas private trusts have limited and narrow domain.

Topics: Setting Up of Business

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