POWERS OF TRUSTEE | SECTION 36 - 45 OF TRUST ACT 1882 | CHAPTER 4 | KHADIJA FAROOQ | LAW | JUDICIARY

POWERS OF TRUSTEE | SECTION 36 - 45 OF TRUST ACT 1882 | CHAPTER 4 | KHADIJA FAROOQ | LAW | JUDICIARY


POWERS OF TRUSTEE

GENERAL AUTHORITY OF TRUSTEE U/S 36 :
A trustee may do all acts which are reasonable and proper for the realization, protection or benefit of the trust-property, and for the protection or support of a beneficiary who is not competent to contract.
EXCEPTION :
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.

POWER TO SELL IN LOTS AND EITHER BY PUBLIC AUCTION OR PRIVATE CONTRACT U/S 37
Where the trustee is empowered to sell any trust-property, he may sell the same subject to prior charges or not, and either together or in lots, by public auction or private contract, and either at one time or at several times, unless the instrument of trust otherwise directs.

POWER TO BUY AND RE SELL U/S 38
The trustee making any such sale may insert such reasonable stipulations either as to title or evidence of title, or otherwise, in any conditions of sale or contract for sale, as he thinks fit; and may also buy in the property or any part thereof at any sale by auction, and rescind or vary any contract for sale.
TIME ALLOWED FOR SELLING TRUST PROPERTY :
Where a trustee is directed to sell trust-property or to invest trust-money in the purchase of property, he may exercise a rea sonable discretion as to the time of effecting the sale or purchase.

POWER TO CONVEY U/S 39
For the purpose of completing any such sale, the trustee shall have power to convey or otherwise dispose of the property sold in such manner as may be necessary.

POWER TO VARY INVESTMENTS U/S 40
A trustee may, at his discretion, call in any trust-property invested in any security and invest the same on any of the securities. Provided that, where there is a person competent to contract and entitled at the time to receive the income of the trust-property for his life, or for any greater estate, no such change of investment
shall be made without his consent in writing.

POWER WITH REGARD TO MAINTENANCE OF MINOR BENEFICIARIES U/S 41
Where any property is held by a trustee in trust for a minor, such trustee may, at his discretion, pay to the guardians (if any) of such minor, or otherwise apply for or towards his maintenance or education or advancement in life, or the reasonable expenses of his religious worship, marriage or funeral, the whole or any part of the income to which he may be entitled in respect of such property.

POWER TO GIVE RECEIPTS U/S 42
Any trustees or trustee may give a receipt in writing for any money, securities or other moveable property payable, transferable or deliverable to them or him by reason, or in the exercise, of any trust or power; and, in the absence of fraud, such receipt shall
discharge the person paying, transferring or delivering the same therefrom, and from seeing to the application thereof, or being accountable for any loss or misapplication thereof.

POWER TO COMPOUND U/S 43

The powers conferred by this section on two or more trustees acting together may be exercised by a sole acting trustee when by the instrument of trust, if any, a sole trustee is authorized to execute the trusts and powers thereof.
This section applies only if and as far as a contrary intention is not expressed in the instrument of trust, if any, and shall have effect subject to the terms of that instrument and to the provisions therein contained.
This section applies only to trusts created after this Act comes into force.

POWER OF SURVIVING TRUSTEES U/S 44 :
When an authority to deal with the trust-property is given to several trustees and one of them disclaims or dies, the authority may be exercised by the continuing trustees, unless from the terms of the instrument of trust it is apparent that the authority is to be exercised by a number in excess of the number of the remaining trustees.

SUSPENSION OF POWERS OF TRUSTEE BY DECREE U/S 45 :
Where a decree has been made in a suit for the execution of a trust, the trustee must not exercise any of his powers except in conformity with such decree, or with the sanction of the Court by which the decree has been made, or, where an appeal against the decree is pending, of the Appellate Court.