Central

Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893

Immediately from and after the passing of this Act, bonds of the Municipal Corporation of the City of Bombay, producing an annual income of not less of settled than one lakh and twenty-five thousand rupees shall property be transferred into the name of the Corporation, who shall hold the same upon the trusts and for the purposes hereinafter expressed concerning the same, (that is to say,) upon trust to continue to hold the said bonds until the same shall be discharged by the Municipal Corporation of the City of Bombay, or shall be sold by the said Trustees at their discretion, and on such discharge or sale to invest the sum to be received on such occasion in or on any stocks, funds or securities of or the principal or interest of which is guaranteed by the Government of the United Kingdom of Great Britain and Ireland or the Government of India; and in like manner, as often as the same shall been necessary, to alter, vary and, change such stocks, funds and securities for others of the same or like nature; and upon further trust from time to time to pay and apply the dividends, interest and annual income of the said bonds, stocks, funds and securities unto and for the benefit of the said Sir Dinshaw Manockjee Petit during his natural life; and from and immediately after his decease for the benefit of the said Framjee Dinshaw Petit if he shall survive the said Dinshaw Manockjee Petit during his natural life; and from and immediately after the death of the survivor of them the said Sir Dinshaw Manockjee Petit and Framjee Dinshaw Petit for the benefit of the person who, as heir male of the body of the said Framjee Dinshaw Petit, or of the said Sir Dinshaw Manockjee Petit, as the case may be, shall for the time being have succeeded to and be in the enjoyment of the title of Baronet conferred by the said Letters Patent as aforesaid, notwithstanding any rule of law or equity to the contrary, and upon failure and in default of heirs male of the body of the said Framjee Dinshaw Petit and Sir Dinshaw Manockjee Petit, to whom the same title and dignity of Baronet may; descend, upon trust for the said Sir Dinshaw Manockjee Petit, his executors, administrators and assigns, which ultimate remainder or reversion it shall be lawful for the said Sir Dinshaw Manockjee Petit, his executors, administrators and assigns, at any time or times, during the continuance of the said title and dignity of Baronet, and until there shall be a failure of heirs male of the body of the said Sir Dinshaw Manockjee Petit as aforesaid, to assign, transfer, bequeath and dispose of by deed or will or other assurance or assurances

Summary

The Corporation holds these bonds until they are paid off or sold.
If sold, the money must be put into stocks or funds guaranteed by the UK or Indian governments.
The income from these investments goes to Sir Dinshaw Petit first for his life.
After he dies, the income goes to Framjee Dinshaw Petit for his life.
After they both die, the income goes to whoever is currently the Baronet.
If there are no more male heirs, the property goes back to Sir Dinshaw's chosen representatives or heirs.

Practical examples

1In 1895, the Corporation receives the annual interest of 130,000 rupees from the Bombay bonds and pays the full amount to Sir Dinshaw so he can maintain his lifestyle.

2In 1915, the Corporation decides to sell some bonds. They use the cash to buy 50,000 rupees worth of Indian Government securities to ensure the income continues for the next heir.

3The family line unfortunately ends in 2050 with no male heirs. The trust funds are then transferred to the people named in Sir Dinshaw's original will.

FAQ

1. What is the minimum annual income the bonds must produce?

They must produce an annual income of not less than one lakh and twenty-five thousand rupees.

2. Who gets the money if both Sir Dinshaw and Framjee have passed away?

The money goes to the person who has inherited the title of Baronet at that time.

3. What kind of stocks can the Corporation buy?

They can buy stocks or funds where the principal or interest is guaranteed by the Government of India or the United Kingdom.

4. Can the Corporation change the investments?

Yes, they have the power to alter, vary, and change the stocks for others of a similar nature.

Test yourself

Q1.Under Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893, what is the required annual income of the settled bonds?

Q2.According to Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893, who is the first person entitled to the trust's income?

Q3.Under Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893, what must the Corporation do if the municipal bonds are sold?

Q4.Under Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893, who receives the income if the Baronet is a male heir who has NOT yet taken the required name from Section 2?

Q5.What is the "ultimate remainder" mentioned in Section 3 of The Sir Dinshaw Manockjee Petit Act, 1893?

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