CSR and Social Governance · Societies and Trusts

Rights and Powers of Trustees under the Indian Trusts Act

Updated 11 October 2026 · Fact-checked

A trustee holds trust property for the beneficiary, but the Indian Trusts Act, 1882 also gives the trustee rights: to keep the trust documents (s.31), to be reimbursed for proper expenses (s.32), and to seek the court's opinion (s.34). Trustees also have powers to sell and to apply a minor's income. Answer by naming the right, its source and its limits.

Understand Rights and Powers of Trustees

A trustee is a person who holds property for the benefit of another. The Act places many duties on the trustee. It also gives rights and powers so the trustee can do the job without personal loss or fear of liability.

Think of rights as protections for the trustee, and powers as things the trustee may do with the trust property. Rights include the right to the title-deed, to reimbursement of expenses and to ask the court for advice. Powers include selling trust property and applying income for a minor.

The Act also links rights with duties. For example, a trustee must protect the title to trust property (s.13). The trustee's right to the documents (s.31) helps in doing that. The right to reimbursement (s.32) covers the costs of doing it.

Powers are not unlimited. A trustee must act reasonably and in the beneficiary's interest. A power of sale, for instance, allows reasonable discretion as to timing, but not an indefinite delay. A beneficiary can ask the court to compel a duty or stop a probable breach (s.61).

Note the scope. Section 1 says the Act does not apply to public or private religious or charitable endowments, and that it does not affect the rules of Muhammadan law as to waqf. It also does not affect the mutual relations of the members of an undivided family as determined by any customary or personal law. So in an answer on a religious or charitable endowment, on a waqf, or on arrangements among members of an undivided family, mention this saving. A private trust that falls outside these savings remains governed by the Act. For a society, property not vested in trustees vests in the governing body (s.5 of the Societies Registration Act, 1860).

Key rules to remember

Right to title-deed (s.31): Trustee may possess the instrument of trust and all documents of title relating solely to the trust-property; Only documents relating solely to the trust property. Do not stretch it to all documents.
Reimbursement of expenses (s.32): Expenses properly incurred in the execution of the trust, or realisation, preservation or benefit of trust-property, or protection or support of the beneficiary may be recovered from trust-property; The expense must be proper. Improper expenses are not recoverable.
First charge (s.32): Expenses paid from own pocket give a first charge on trust-property for the expenses and interest; Unless incurred with the sanction of a principal Civil Court of original jurisdiction, the charge is enforced only by prohibiting disposition of the trust-property without prior payment.
Recovery from beneficiary (s.32): If trust-property fails, trustee may recover from the beneficiary personally on whose behalf and at whose request (express or implied) he made the payment; Two conditions: the trustee paid on the beneficiary's behalf at his request (express or implied), and the trust-property failed.
Recoupment of over-payment (s.32): Mistaken over-payment to a beneficiary may be recouped out of the beneficiary's interest; if the interest fails, recover from the beneficiary personally; Applies only to over-payment by mistake.
Court's opinion (s.34): Trustee may apply by petition, without a suit, for opinion, advice or direction on present questions about management or administration of trust-property; Questions of detail, difficulty or importance not proper for summary disposal are excluded. Good-faith disclosure of facts and acting on the advice discharges the trustee's responsibility.
Sale on special conditions (s.38): Trustee making the sale may insert reasonable stipulations as to title or evidence of title, buy in the property at an auction, rescind or vary a contract for sale, and re-sell the property bought in or the subject of a rescinded contract; He is not responsible to the beneficiary for any loss caused by doing so. The stipulations must be reasonable.
Time of sale (s.38 and s.22): Trustee directed to sell or to invest in purchase of property may use reasonable discretion as to the time of sale or purchase; Where the direction is to sell at a time the trustee thinks fit, he cannot postpone the sale indefinitely. Where he extends a time specified for sale, s.22 puts the burden on him to prove the beneficiary is not prejudiced, unless a principal Civil Court of original jurisdiction authorised the extension.
Maintenance of minor (s.41): Trustee may apply income for maintenance, education or advancement of a minor; accumulate the residue; use the property itself only with court permission if income is insufficient; Income: trustee's discretion. Capital: court permission needed.

How to solve Rights and Powers of Trustees questions

Use this order for any case-based question on trustee rights and powers.

1Identify the situation: expense, document, doubt about management, sale, or minor beneficiary.
2Check the Act applies. Section 1 says the Act does not apply to public or private religious or charitable endowments, does not affect the rules of Muhammadan law as to waqf, and does not affect the mutual relations of the members of an undivided family as determined by any customary or personal law. A private trust outside these savings is governed by the Act.
3Name the right or power and its section (for example 31, 32, 34, 38 or 41, and where relevant 13, 22 or 61).
4Test the conditions: was the expense proper, did the question fall within s.34, was the court sanction needed.
5Apply to the facts given: amounts, who requested, whether trust-property failed.
6State the conclusion clearly and note the trustee's protection or limit.
7Add the practical point: keep records, get court sanction, or file a petition where in doubt.

Quickest way: Right-Section-Condition-Conclusion

When to use it: Use when a short answer is needed and you have only a few minutes.

Write the right or power in one line with the section.
Write its one key condition (proper expense, good faith, court permission).
Apply it to the facts in two lines.
Close with the outcome in one sentence.

Common mistakes in Rights and Powers of Trustees

Saying a trustee can recover any expense incurred.
Students remember reimbursement but forget the word 'properly'.
Fix: Always write: expenses properly incurred in or about the execution of the trust.
Claiming the first charge is always enforceable by sale.
Mixing up the charge with a mortgage.
Fix: Say that, unless the expenses were incurred with court sanction, the charge is enforced only by prohibiting disposition of the trust-property without previous payment. It does not let the trustee sell the property to recover the money.
Thinking s.34 lets a trustee seek advice on any question.
The word 'any' in the opening line misleads.
Fix: State that it covers present questions of management or administration, excluding matters of detail, difficulty or importance not proper for summary disposal.
Applying the Indian Trusts Act to public or private religious or charitable endowments, treating the whole of waqf law as excluded, or assuming every private trust is outside the Act.
Students ignore the exact wording of the savings clause in s.1.
Fix: Mention that the Act does not apply to public or private religious or charitable endowments, that it does not affect the rules of Muhammadan law as to waqf, and that it does not affect the mutual relations of the members of an undivided family under customary or personal law. A private trust outside these savings is governed by the Act.
Allowing a trustee to postpone sale indefinitely.
Reading 'reasonable discretion' as total freedom.
Fix: Quote the s.38 illustrations: no immediate sale is imperative, but indefinite postponement is not authorised. If the trustee extends a specified time for sale, add that under s.22 he must prove the beneficiary is not prejudiced, unless the Court authorised the extension.
Using a minor's capital freely for maintenance.
Confusing income with property under s.41.
Fix: Income may be applied at the trustee's discretion; the property needs a principal Civil Court's permission.

Worked examples

Example 1

Rajan is trustee of a private trust that is not within any of the s.1 savings. He pays ₹40,000 from his own pocket to repair the trust building and to defend the title in a suit. The trust has no ready cash. He had not obtained any court sanction for the expenses. Advise Rajan on his rights.

Show the solution

The expenses are for preservation of trust-property and protection of title, so they are properly incurred under s.32.
Defending the title is also his duty under s.13. That section is the source of the duty. His right to be repaid comes from s.32.
Because he paid from his own pocket, he has a first charge on the trust-property for ₹40,000 and interest.
He had no court sanction. So he cannot enforce the charge by selling the property. He can only prohibit any disposition of the trust-property until he is paid the expenses and interest.
For future expenses, he can seek the sanction of a principal Civil Court of original jurisdiction before incurring them. Where expenses are incurred with such sanction, the limit that the charge is enforced only by prohibiting disposition does not apply. The section does not say how the charge is then enforced, so do not assume that he may sell the property.
If the trust-property fails, he may recover the amount from the beneficiary personally, but only a beneficiary on whose behalf and at whose request, express or implied, he paid.

Answer: Rajan's ₹40,000 is a proper expense and he has a first charge on the trust-property for it with interest. Without court sanction he cannot sell the property to recover it. He can only stop the property being disposed of until he is paid.

Example 2

Meera, a trustee, is unsure whether she may lease out a trust shop under the trust deed. She does not want to file a suit. What can she do, and how is she protected?

Show the solution

Her doubt is a present question about management or administration of trust-property, so s.34 applies.
She may apply by petition to a principal Civil Court of original jurisdiction, without instituting a suit.
A copy of the petition is served on such interested persons as the Court thinks fit, and they may attend the hearing.
She must state the facts in good faith and act on the Court's opinion, advice or direction.
Then, as regards her own responsibility, she is deemed to have discharged her duty in that matter.
Costs are in the Court's discretion.

Answer: Meera may petition the Court under s.34. If she states facts in good faith and acts on the Court's direction, she is treated as having discharged her duty as trustee in that matter.

Exam tips

Quote the section number with each right or power: 31 (documents), 32 (expenses), 34 (court's opinion), 38 (sale) and 41 (minor). Bring in ss.13, 22 and 61 where the facts need them. For s.38, remember the power to insert reasonable stipulations, buy in at an auction, rescind or vary a contract and re-sell, without being responsible to the beneficiary for loss.
In case questions, check whether the expense was proper and whether court sanction existed before concluding.
Add the s.1 saving when the facts involve a religious or charitable endowment, public or private, a waqf, or the mutual relations of members of an undivided family under customary or personal law: the Act does not apply to such endowments and does not affect those rules or relations. A private trust outside these savings is governed by the Act.
Close with a practical point such as keeping vouchers or approaching the Court under s.34.

Practice questions from Societies and Trusts

Rights and Powers of Trustees in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Rights and Powers of Trustees: frequently asked questions

What is the trustee's right to reimbursement?

A trustee may reimburse himself, or pay out of the trust-property, expenses properly incurred in executing the trust or protecting the property or beneficiary (s.32). If he pays from his own pocket, he has a first charge on the trust-property.

Can a trustee go to court without filing a suit?

Yes. Under s.34 a trustee may apply by petition to a principal Civil Court of original jurisdiction for opinion, advice or direction on present questions of management or administration. Acting in good faith on that direction protects the trustee.

Can a trustee recover money from a beneficiary personally?

Yes, in limited cases under s.32. If the trust-property fails, he can recover expenses from the beneficiary on whose behalf and at whose request he paid. For a mistaken over-payment, he first recoups from the beneficiary's interest, then from the beneficiary personally.

Does a trustee have a right to the trust documents?

Yes. Section 31 entitles a trustee to possess the instrument of trust and all documents of title relating solely to the trust-property.