Sections 89-90 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 89 says that a person who gains an advantage through undue influence, without consideration or with notice of the influence, must hold it for the person prejudiced. Section 90 says that a tenant for life, co-owner, mortgagee or other qualified owner who uses his position to gain an advantage against the others interested in the property must hold the advantage for all of them, subject to repaying their share of proper expenses. Both are obligations in the nature of trusts under Chapter IX. The Act deals with private trusts; public, charitable and religious trusts are governed by other laws (see private vs public trust). If you are in a dispute of this kind, our legal dispute resolution team can look at the papers.
Section 89: where, by undue influence, an advantage is gained in derogation of another's interests, the person gaining it without consideration, or with notice that the influence was exercised, must hold it for the person prejudiced. Section 90: where a tenant for life, co-owner, mortgagee or other qualified owner, by availing himself of his position, gains an advantage in derogation of the rights of others interested, or gains an advantage as representing all of them, he must hold it for all so interested, subject to their repaying their due share of the expenses properly incurred and indemnifying him against liabilities properly contracted.
Section 89: undue influence
Section 89 reads: "Where, by the exercise of undue influence, any advantage is gained in derogation of the interests of another, the person gaining such advantage without consideration, or with notice that such influence has been exercised, must hold the advantage for the benefit of the person whose interests have been so prejudiced."
| Element | The Act's words |
|---|---|
| Cause | "by the exercise of undue influence" |
| Effect on another | "gained in derogation of the interests of another" |
| Who is caught | The person gaining it "without consideration, or with notice that such influence has been exercised" |
| Result | "must hold the advantage for the benefit of the person whose interests have been so prejudiced" |
The person who holds is not only the one who used the influence. Someone who received the advantage without paying for it is caught, and so is someone who paid but had notice of the influence. A buyer for value without notice is not described as caught by the words of the section. The Act does not define "undue influence" in this section, and the text is silent on how it is proved.
Section 90: qualified owner
Section 90 reads: "Where a tenant for life, co-owner, mortgagee or other qualified owner of any property, by availing himself of his position as such, gains an advantage in derogation of the rights of the other persons interested in the property, or where any such owner, as representing all persons interested in such property, gains any advantage, he must hold, for the benefit of all persons so interested, the advantage so gained, but subject to repayment by such persons of their due share of the expenses properly incurred, and to an indemnity by the same persons against liabilities properly contracted, in gaining such advantage."
The section covers two situations: an owner who uses his position to gain an advantage against the others, and an owner who gains an advantage "as representing all persons interested". In both, he holds it for all of them. But there is a balance: those who take the benefit must repay their due share of the expenses properly incurred and indemnify him against liabilities properly contracted in gaining the advantage.
| Qualified owner | Example in the text |
|---|---|
| Tenant for life | Renews a lease in his own name |
| Co-owner | A member of a family who gets his name entered as owner |
| Mortgagee | Lets revenue fall into arrears and buys the land at the resulting sale |
| "other qualified owner" | The class is open; the section does not list more |
"Qualified owner" is not defined. The section's examples help, and the Act's illustrations (below) give the clearest picture.
The Act's own illustrations
The Act gives three illustrations under section 90. In plain words:
- Illustration (a). A, the tenant for life of leasehold property, renews the lease in his own name and for his own benefit. A holds the renewed lease for the benefit of all those interested in the old lease.
- Illustration (b). A village belongs to a Hindu family. A, one of its members, pays a sum to Government (the scan prints "Nazrana") and thereby gets his name entered as the inamdar of the village. A holds the village for the benefit of himself and the other members.
- Illustration (c). A mortgages land to B, who enters into possession. B allows the Government revenue to fall into arrear so that the land will be put up for sale and he can buy it. The land is sold to B. Subject to repayment of the amount due on the mortgage and of his expenses properly incurred as mortgagee, B holds the land for the benefit of A.
No illustrations are printed under section 89 in the scanned copy.
A modern example of our own
- Section 89. Kamlesh, an old man, is pressured by his nephew Vivek, who controls his medical care, into signing over a shop for a token Rs 1,000. Vivek gained the advantage by undue influence and gave no real consideration. Vivek must hold the shop for Kamlesh. If Vivek sells it to Lalit, who knows how it was obtained, Lalit is caught as well, because he has notice.
- Section 90, tenant for life. Sheela holds a lease for her life, with the remainder going to her grandchildren. When the lease comes up for renewal she renews it in her own name only. As in illustration (a), she holds the renewed lease for all interested in the old lease.
- Section 90, co-owner. Three brothers own a shop in common. One brother alone pays arrears of municipal dues and takes a new registration in his name. The others may claim the benefit, but must pay their share of the expense he properly incurred, as the section's final words provide.
What the instrument of trust can change
Sections 89 and 90 do not mention the instrument of trust. They are obligations that arise from conduct, not from the deed, and the text does not say whether a deed or agreement can displace them. If co-owners or a family want to settle who may renew leases or take new registrations, they should record the agreement in writing and take advice.
Practical points
- Co-owners, tenants for life and mortgagees: before renewing a lease, paying an arrear or buying the property at a sale, tell the others in writing and record how the expense will be shared.
- Anyone buying property from someone who got it by pressure or from a co-owner acting alone should ask for the history and check for notice.
- Those prejudiced: gather evidence of the pressure or of the owner's position, and be prepared to repay your due share of proper expenses.
- For general rules on a fiduciary's gain, see section 88.
Need help with an advantage taken by a co-owner, mortgagee or influencer?
If someone has gained an advantage over you through pressure, or a co-owner, tenant for life or mortgagee has used his position to his own gain, the documents and the history will show the position. Our legal dispute resolution team can review them and explain how sections 89 and 90 may apply.
Key takeaways
- Section 89: an advantage gained by undue influence is held for the person prejudiced by anyone who gained it without consideration or with notice.
- Section 90: a tenant for life, co-owner, mortgagee or other qualified owner who gains an advantage by availing himself of his position holds it for all interested.
- The others must repay their due share of expenses properly incurred and indemnify against liabilities properly contracted.
- The Act's three illustrations cover a lease renewal, a village entry in a family and a mortgagee buying at a sale.
- Neither section defines the key terms.
Read next
- Sections 91-93: notice of contract, purchase for trust and secret creditor gain
- Section 88: advantage gained by a fiduciary
- Sections 95-96: obligator's duties, liabilities and saving of bona fide purchasers
- Liabilities of trustees for breach of trust
Disclaimer: Based on the text of the Indian Trusts Act, 1882 as consulted on 1 October 2026 from a scanned copy; the Act applies to private trusts, and public, charitable and religious trusts are governed by other laws. This article is general information, not legal advice; check the official text and take advice before acting.