Section 36 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 36 is the catch-all power of a trustee. Beyond the powers expressly given by the Act and the deed, he may do all acts that 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. The section also fixes a limit on leases: not beyond twenty-one years from the date of executing the lease without the permission of a principal Civil Court of original jurisdiction, and not without reserving the highest yearly rent that can reasonably be obtained. If you are drafting powers for a trustee, a clear agreement drafting of the deed's powers clause avoids arguments over what is "reasonable".
In addition to the powers given by the Act and the deed, and subject to the restrictions in the deed and to 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. 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 highest yearly rent reasonably obtainable.
Scope of the Act
The Act deals with private trusts. Public, charitable and religious trusts are governed by other laws; see private trust vs public trust. Section 36 is about the powers of a private trustee.
The text
The first paragraph: "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 realization, protection or benefit of the trust-property, and for the protection or support of a beneficiary who is not competent to contract."
Our source then shows two stars where a second paragraph used to be. Footnote 17 says that the second paragraph was repealed by Act 12 of 1891 (section 2 and Schedule I). The text of that repealed paragraph is not printed in our source and we do not state what it said.
The next paragraph says that, 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 yearly rent at the top of what can reasonably be obtained (we paraphrase the last words; read the exact wording in the official text).
Limb by limb
| Part | Plain meaning |
|---|---|
| "In addition to the powers expressly conferred" | This is a general power, over and above express powers |
| "subject to the restrictions, if any, contained in such instrument" | The deed can restrict it |
| "and to the provisions of Section 17" | The trustee's duty of impartiality between beneficiaries applies |
| "all acts which are reasonable and proper" | The test is reasonableness and propriety, not a fixed list |
| "realization, protection or benefit of the trust-property" | Acts aimed at the property itself |
| "protection or support of a beneficiary who is not competent to contract" | Acts aimed at a minor or other incompetent beneficiary |
| Lease limit: "twenty-one years from the date of executing the lease" | A longer term needs the Court's permission |
| Lease rent: reserve the highest yearly rent reasonably obtainable | A trustee cannot lease for a token rent |
The general power is residual: it fills gaps and does not override express restrictions in the deed. Section 17 sits behind it, so an act that favours one beneficiary at another's expense is not "reasonable and proper" merely because it benefits the property. The lease rule is a prohibition ("no trustee shall lease") subject to the Court's permission, and the twenty-one years run from execution of the lease.
For the wider picture of sale, lease and investment powers, see our post on powers of trustees: sale, lease, investment.
The Act's illustrations
No illustrations are printed under section 36 in our source. The publisher's case-law paragraph under it is not part of the Act and is not used.
A modern example of our own
Anita Mehra settles a commercial shop in Surat on trust for her two minor children, with her brother Pankaj as trustee. The deed says nothing about leases.
- Pankaj can do reasonable and proper acts: insuring the shop, paying property tax and carrying out urgent repairs, under the general authority.
- A tenant offers an eleven-year lease at a rent Pankaj believes is the highest he can reasonably get. The term is within twenty-one years, so no Court permission is needed under the text.
- Another party offers a thirty-year lease. That exceeds twenty-one years, so Pankaj needs the permission of the principal Civil Court of original jurisdiction.
- A relative offers to rent it at half the market rent. Reserving less than the highest reasonably obtainable yearly rent does not meet the section.
- For a child's urgent need, Pankaj may take reasonable steps to support a beneficiary not competent to contract, but section 17 stops him favouring one child over the other.
What the instrument of trust can change
The first paragraph is expressly "subject to the restrictions, if any, contained in such instrument". So a deed can narrow the general authority, for example by forbidding any lease without beneficiary consent. The lease paragraph carries no such words; whether a deed can allow longer leases without Court permission is not answered by the section's text, so a deed should not assume it.
Practical points
- Settlors: write specific powers (leasing, repairs, borrowing) into the deed.
- Trustees: get market rent evidence before leasing, and keep it.
- Advisers: registration and stamp duty of a lease are outside this Act's text.
Need help with trustee powers in your deed?
If you are drafting a trust deed and want the powers clause to cover leases and other acts clearly, our agreement drafting service can prepare it. Bring the property details and your plans for it.
Key takeaways
- A trustee may do all acts reasonable and proper for the trust property and for an incompetent beneficiary's protection or support, subject to the deed and to section 17.
- No lease beyond twenty-one years from the date of executing it without the permission of a principal Civil Court of original jurisdiction.
- A lease must reserve the highest yearly rent reasonably obtainable.
- The section's second paragraph was repealed in 1891; its text is not printed in our source.
Read next
- Sections 33-35: indemnity from gainer, opinion of the Court and settlement of accounts
- Sections 37-39: power to sell in lots, special conditions and conveyance
- Powers of trustees: sale, lease, investment
Disclaimer: Based on the text of the Indian Trusts Act, 1882 as consulted on 1 October 2026 from a scanned copy; the Act applies to private trusts, and public, charitable and religious trusts are governed by other laws. This article is general information, not legal advice; check the official text and take advice before acting.