Hold the advantage:
It has been remarked that the words “hold the advantage” in Section 89, Trusts Act cannot be held to create at once an enforceable as distinguished from establishable trust in favour of the transferor. [Rajah of Ramnad v. Arunachellam Chettiar, 19 IC 596]. When a compromise is entered into as between persons one of whom could not have in good faith believed in the claim put forward by him and the latter secures an undue advantage in derogation of the interests of another; such advantage must be deemed to be held in trust for the benefit of the person prejudiced or his representative and should be restored to the latter. [Ovula Kondama Naicken Aiyar v. Aparanji Ammal, 52 IC 1003]. An alliance in good faith and for consideration from the party who has secured such advantage is not, however, affected by the infirmities affecting his alienor’s title. [Ibid: see Section 96, Trusts Act]. The purchaser of an advantage gained by the exercise of undue influence with notice of its exercise or of the circumstances from which the court confers the equity, is subject to the same liability as his transferor. [Bainbridge v. Browne, (1881), 18 Ch D 188].
