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Section 27: Duties of guardian of property

Guardians and Wards Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1890
Section 26 All 53 Sections of Guardians and Wards Act Section 28

Legal Commentary & Landmark Judgments: Section 27

Section 27 of the Guardians and Wards Act, 1890 defines the duties of a guardian of property, establishing the standard of care of a prudent owner.

  • Core Legal Standard: Section 27 establishes the universal benchmark of diligence for managing a minor's estate.
  • Operational Mechanism: It provides that a guardian of the property of a ward is bound to deal therewith as carefully as a man of ordinary prudence would deal with it if it were his own, and subject to the provisions of this Chapter, he may do all acts which are reasonable and proper for the realization, protection or benefit of the property.
  • Procedural Rule: The section imposes an objective fiduciary standard: the guardian must not take speculative risks, neglect repairs, allow rents to fall into arrears, or squander assets.

Any loss resulting from reckless management constitutes devastavit, rendering the guardian personally liable in damages.

Key Landmark Precedents:
  • Kuppuswami Chettiar v. A.S.P.A. Arumugam Chettiar (AIR 1967 SC 1395): The Supreme Court affirmed that the standard of care required of a guardian under Section 27 is that of an ordinary prudent owner managing their own estate; reckless investments or self-dealing violate the statutory duty.
  • Saroj v. Sunder Singh (2014) 15 SCC 727: The Supreme Court held that acts done for the benefit of the minor under Section 27 are subject to the mandatory statutory restrictions on alienation contained in Section 29.
Legal Commentary:

Section 27 requires property guardians to maintain accurate account books, deposit revenues into interest-bearing bank accounts, and insure valuable estate assets. While the guardian has authority to incur ordinary recurring expenses for maintenance and preservation, extraordinary dispositions are strictly governed by Section 29.

Section 26 All 53 Sections of Guardians and Wards Act Section 28