93. Advantage secretly gained by one of several compounding creditors.—
Where creditors
compound the debts due to them, and one of such creditors, by a secret arrangement with the debtor, gains
an undue advantage over his co-creditors, he must hold for the benefit of such creditors the advantage so
gained.
94. [Constructive trusts in cases not expressly provided for].—Rep. by the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988), s. 7 (w.e.f. 19-5-1988).
95. Obligor’s duties, liabilities and disabilities.—The person holding property in accordance
with any of the preceding sections of this Chapter must, so far as may be, perform the same duties,
and is subject, so far as may be, to the same liabilities and disabilities, as if he were a trustee of the
property for the person for whose benefit he holds it:
Provided that
(a) where he rightfully cultivates the property or employs it in trade or business, he is
entitled to reasonable remuneration for his trouble, skill and loss of time in such cultivation or
employment; and
(b) where he holds the property by virtue of a contract with the person for whose
benefit he holds it, or with any one through whom such person claims, he may, without the permission of
the Court, buy or become lessee or mortgagee of the property or any part thereof.
96. Saving of rights of bona fide purchasers.—Nothing contained in this Chapter shall impair the
rights of transferees in good faith for consideration, or create an obligation in evasion of any law for the
time being in force.
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THE SCHEDULE
(See section 2)
S TATUTE
Year and Chapter Short Title Extent of repeal
1
29 Car. II, c. 3 . . . . The Statute of Frauds Sections 7, 8, 9, 10 and 11.
ACTS OF THE GOVERNOR GENERAL IN COUNCIL
Number and year Short title Extent of repeal
2
XXVII of 1866 . . . The Trustees’ and Sections 2, 3, 4, 5, 32, 33, 34,
Mortgages’ Powers Act, 1866 35, 36 and 37.
In sections 3*** 43 the word
“trustee” wherever it occurs;
and in section 43 the words
“management or” and “the
trust-property or”.
3
The Specific Relief Act, In section 12 the first
1 of 1877 . . . illustration.
1877
____________
1. Rep. in its application to India.
2. Rep.
3. The figures “39, and” by implication the word “and”, rep. by Act 12 of 1891, s. 2 and the First Sch.
24
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