Gyan, a trustee, improperly leaves trust property outstanding. If such trust property is subsequently lost, is Gyan liable to make good the property lost ? Explain.

It is the duty of trustee under the Indian Trust Act, 1882 to protect and preserve the trust property. If a trustee commits a breach of the trust, than he is liable to make good the loss which the trust property of the beneficiary has suffered under Section 23 of the Indian Trust Act, 1882. However, in two cases he is not liable for such a loss. (i) Where the breach of the trust has resulted due to any fraud committed by the beneficiary; and (ii) Where the beneficiary, being competent to contract, has given his consent for that breach without any coercion or undue influence or subsequently acquiesced therein, with full knowledge of the facts. In the light of the above provisions Gyan is liable to make good the property lost but he is not liable to pay interest thereon.