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Section 117A envisaged that a trust deed for securing any issue of debentures shall be in such form and shall be executed within such period as may be prescribed. Even before insertion of Sections 117A and 117B, Sections 118 and 119 envisaged appointment of debenture trustee or trustees.

36. Section 119 of the Companies Act provided that subject to the provisions of Section 119 any provision contained in a trust deed for securing an issue of debentures, or in any contract with the holders of debentures secured by a trust deed, shall be void insofar as it would have the effect of exempting a trustee thereof from, or indemnifying him against liability for breach of trust, where he fails to show the degree of care and diligence required of him as trustee. Apparently while making provisions for issue of debentures for raising the funds, the Companies Act envisaged that debentures may be both having charge on the company's assets or not having charge against the company's assets. But by making provision under Sections 118 and 119 made to ensure that whether debentures are secured by a charge or mortgage on the company's assets or not, such debentures shall be secured by creation of appropriate trust and appointment of trustees for that purpose, information in respect of which it shall be given to purchasers of debentures.