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Section 37: General liability of guardian as trustee

Guardians and Wards Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1890
Section 36 All 53 Sections of Guardians and Wards Act Section 38

Legal Commentary & Landmark Judgments: Section 37

Section 37 establishes the general civil liability of a guardian as a trustee, providing that the statutory remedies under Sections 35 and 36 do not deprive the ward of general remedies for breach of trust.

  • Trustee Liability Standards: Nothing in Section 35 or 36 shall be construed to deprive a ward or his representative of any remedy against any guardian, or his representative, which would have been available if a bond had not been executed.
  • Breach of Trust Action: The guardian is liable under the general principles of equity and the Indian Trusts Act, 1882 for any wilful default or breach of trust.
  • Survivorship Against Heirs: Liability for misappropriation survives the death of the guardian and can be enforced against the estate inherited by his legal heirs.
Key Landmark Precedents:
  • Gaurav Nagpal v. Sumedha Nagpal (2009) 1 SCC 42: The Supreme Court affirmed that a guardian's accountability under Section 37 is that of an express trustee, meaning limitation does not bar recovery of property fraudulently converted.
  • Kishore Chand v. Dharam Pal (2006) 8 SCC 327: Held that illegal alienations by a guardian can be set aside under Section 37 as breaches of trust against purchasers with notice.
Courtroom Practice & Strategic Litigation Guidance:

In complex financial misappropriation cases, rely on Section 37 to invoke Section 10 of the Limitation Act, 1963, arguing that no period of limitation bars a suit against a guardian who has converted the ward's trust property to his own use.

Section 36 All 53 Sections of Guardians and Wards Act Section 38