law: Indian Trusts Act, 1882 
  26. Non-liability for co-trustee's default 
  Subject to the provisions of sections 13 and 15, one trustee is
  
  not, as such, liable for a breach of trust committed by his co-trustee:
  PROVIDED  that, in, the absence of an express
  
  declaration to the contrary in the instrument of trust, a trustee is so liable-
  
  
  (a) where he has delivered trust-property to his co-trustee
  
  without seeing to its proper application;
  (b) where he allows his co-trustee to receive trust-property and
  
  fails to make due enquiry as to the co-trustee's dealings therewith, or allows
  
  him to retain it longer than the circumstances of the case reasonably require;
  (c) where he becomes aware of a breach of trust committed or
  
  intended by his co-trustee, and either actively conceals it or does not within
  
  a reasonable time take proper steps to protect the beneficiary's interest.
  Joining in receipt for conformity
  A co-trustee who joins in signing a receipt for trust-property
  
  and proves that he has not received the same is not answerable, by reason of
  
  such signature only, for loss or mis-application of the property by his
  
  co-trustee.
  Illustration 
  A bequeaths certain property to B and C, and directs them to
  
  sell it and invest the proceeds for the benefit of D. B and C accordingly sell
  
  the property, and the purchase money is received by B and retained in his
  
  hands. C pays no attention to the matter for two years and then calls on B to
  
  make the investment. B is unable to do so, becomes insolvent, and the
  
  purchase-money is lost. C may be compelled to make good the amount.