Quistclose trusts in India: an examination

Abstract This article examines Quistclose trusts in India through two questions: do they exist, and are they normatively compatible with Indian law? It finds that Indian courts have recognized Quistclose-like trusts where there is intent to create a trust (indicated by segregation and absence of interest). However, such trusts conflict with Indian trust and property law due to (i) the absence of dual ownership, (ii) statutory requirements for an identifiable beneficiary and (iii) the inconsistent application of the beneficiary principle in cases like security deposits.