This relationship arises mainly because of the personal relations between the parties. A relative holding a position of trust is said to be in fiduciary relationship with the beneficiary. Where a person holds any property of another in a relationship of confidence and trust, he is said to be in fiduciary relationship with that other person. An administrator appointed by the Court is in fiduciary relationship with the person for whom he is appointed as an administrator. In business, normally each of the partners is said to hold a relationship equivalent to fiduciary, and particularly when one person is in a dominating position over the other. A broker is in fiduciary relationship with his customers. Fiduciary relationship is something which exists between the trustee and beneficiary under the trust. The person holding fiduciary relationship shall exercise his powers with full care and caution. A person holding position of fiduciary character cannot enter into any agreements with the beneficiaries. Yet he is absolutely answerable for all his acts to the beneficiary or to the person who appointed him to that capacity. A person holding the position of a fiduciary character cannot delegate his functions to any other person.
[Ref.: Marcel Martins v. M. Printer & Ors., AIR 2012 SC 1987 = 2012 (5) SCC 342].