Section 36 of The Indian Trust Act, 1882
In addition to the powers expressly conferred by this Act and by the instrument of trust, and subject to the restrictions, if any, contained in such instrument, and to the provisions of section 17, a trustee may do all acts which are reasonable and proper for the realisation, protection or benefit of the trust-property, and for the protection or support of a beneficiary who is not competent to contract. 1* * * * * Except with the permission of a principal Civil Court of original jurisdiction, no trustee shall lease trust-property for a term exceeding twenty-one years from the date of executing the lease, nor without reserving the best yearly rent that can be reasonably obtained.
Summary
- The section grants a trustee general power to perform all reasonable and proper actions to manage trust assets.
- A trustee can take steps to protect, realize, or benefit the trust property.
- A trustee is authorized to do proper acts to support and protect a beneficiary who cannot legally enter into contracts.
- The general authority is limited by any restrictions in the trust document, other sections of the law, and the requirement to remain impartial among beneficiaries.
- A trustee cannot lease trust property for a term longer than twenty-one years unless a principal Civil Court of original jurisdiction gives permission.
- Any lease made by the trustee must secure the best yearly rent that can reasonably be got, unless the court permits otherwise.
Practical examples
FAQ
1. What general powers does a trustee have under Section 36 of the Indian Trusts Act, 1882?
Under Section 36 of the Indian Trusts Act, 1882, a trustee has the authority to perform any acts that are reasonable and proper for the realization, protection, or benefit of the trust property, as well as for the protection or support of a beneficiary who is incompetent to contract.
2. Can a trustee lease trust property under Section 36 of the Indian Trusts Act, 1882?
Yes, under Section 36 of the Indian Trusts Act, 1882, a trustee may lease trust property, but the lease cannot exceed a term of twenty-one years from the date of execution unless permission is obtained from a principal Civil Court of original jurisdiction.
3. Does a trustee need court permission to lease trust property for ten years under Section 36 of the Indian Trusts Act, 1882?
No, under Section 36 of the Indian Trusts Act, 1882, a trustee does not need court permission for a ten-year lease, provided the lease reserves the best yearly rent that can be reasonably obtained and complies with any restrictions in the trust instrument.
4. What rent requirement must a trustee meet when leasing trust property under Section 36 of the Indian Trusts Act, 1882?
Under Section 36 of the Indian Trusts Act, 1882, a trustee must reserve the best yearly rent that can be reasonably obtained, unless they obtain permission from a principal Civil Court of original jurisdiction to do otherwise.
5. Is the general authority of a trustee under Section 36 of the Indian Trusts Act, 1882, subject to any impartiality rules?
Yes, the general authority of a trustee under Section 36 of the Indian Trusts Act, 1882, is expressly subject to the provisions of Section 17, which requires the trustee to remain impartial when there are multiple beneficiaries.
Test yourself
Q1.Under Section 36 of the Indian Trusts Act, 1882, what is the maximum lease term a trustee can grant for trust property without seeking court permission?
Q2.Under Section 36 of the Indian Trusts Act, 1882, which judicial authority has the power to permit a trustee to lease trust property for a term exceeding twenty-one years?
Q3.Under Section 36 of the Indian Trusts Act, 1882, the general authority of a trustee is explicitly subject to which other statutory restriction within the same Act?
Q4.Under Section 36 of the Indian Trusts Act, 1882, what requirement must a trustee fulfill regarding rent when leasing out trust property without court intervention?