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TMI Blog2004 (4) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... urdened the Appellant to locate the particular account in which the money is credited so as to claim it back. Section 66 of the Trusts Act arms the Court to impose a charge on the whole property of the trustee to the extent of amount due. - CIVIL APPEAL NO. 166 OF 1994 - - - Dated:- 12-4-2004 - S. RAJENDRA BABU, DR. AR. LAKSHMANAN AND G.P. MATHUR, JJ. Rohit Kapadia, Ms. Sumita Dutt, Pradeep, Nilesh Parikh and Ms. Pooja Jha for the Appellant. Jay Savla, Ms. Reena Bagga, A. Subba Rao and P. Parmeswaran for the Respondent. JUDGMENT S. Rajendra Babu, J. - Facts leading to this Appeal are as follows : Appellant engaged Respondent No. 2 as a broker to sell 10,00,000 shares of Reliance Petro Chemicals Ltd. at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 merely acted as agent/broker on behalf of the Appellant; that the amounts he received from the sale of their shares should have been handed over to them; that as long as the amounts are not handed over, the Respondent No. 2 holds the same in trust for and on behalf of the Appellant; that the same is not his property; that the Respondent No.1/Custodian ought not to have attached the property since it is not property belonging to Respondent No. 2. 4. Respondent No. 2 has not denied the transaction. 5. In this context the position of law that needs to be ascertained is whether the amount Respondent No. 2 is holding belongs to him or not. Under section 11(1) of the Act, the Special Court is empowered to direct Custodian for the disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been realized from the sale of those shares; d. The account particulars (in so far as it is relevant) of the bank in which the proceeds, if any, of the sale of the said shares were deposited; and e. In case any payment had been received by way of settlement or adjustment of any other transaction, then the full particulars of the parties with whom those transactions were held and the particulars of those transaction. 8. His brother was also directed to file an affidavit clarifying his position on the claim of set off. In order to ascertain the particulars, Respondent No. 2 and his brother were given liberty to verify the documents and records in the custody of CBI or income tax authorities concerning the said transaction. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Respondent No. 2 that he received money on behalf of Appellant, the Appellant is entitled to get back his money, because the Respondent No. 2 is holding the money in Trust. Even if the Respondent No. 2 blended the property/money with that of his own money under section 66 of the Indian Trusts Act, 1882 (the Trusts Act) the Appellant is entitled to a charge on the whole fund for the amount due. Therefore we cannot agree with the finding of the Special Court that burdened the Appellant to locate the particular account in which the money is credited so as to claim it back. Section 66 of the Trusts Act arms the Court to impose a charge on the whole property of the trustee to the extent of amount due. 13. In result, we cannot sustain t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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