{ "schema_version": "qanun-law-text/1", "id": "punjab-code-2299ec89d3b2f66c", "title": "PUNJAB TRUSTS ACT 2020", "source_collection": "Punjab", "content_kind": "stored_law_text", "content_extent": null, "source_url": "https://punjabcode.punjab.gov.pk/en/show_article/UmIFMwo9W2pcNA--", "version": null, "source_snapshot": "2026-08-06T17:01:13Z", "legal_status": "not independently verified", "text_quality": "Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.", "text_sha256": "968435cd48ce0fa6e06065e8ecda304359085156dd7417ed3e4084f616874268", "source_sha256": "968435cd48ce0fa6e06065e8ecda304359085156dd7417ed3e4084f616874268", "text_version_id": "law:punjab-code-2299ec89d3b2f66c:sha256:968435cd48ce0fa6e06065e8ecda304359085156dd7417ed3e4084f616874268", "quality_flags": [], "encoding": "UTF-8", "text": "THE PUNJAB TRUSTS ACT 2020 \r\n(XXI of 2020) \r\nCONTENTS \r\nCHAPTER I \r\nPRELIMINARY \r\n1. Short title, extent and commencement \r\n2. Application \r\n3. Definitions \r\nCHAPTER II \r\nCREATION OF TRUSTS \r\n4. Lawful purpose \r\n5. Validity of Trusts \r\n6. Creation of trusts \r\n7. Who may create a trust \r\n8. Subject matter of trusts \r\n9. Who may be a beneficiary \r\n10. Disclaimer by a beneficiary \r\n11. Who may be a trustee \r\n12. Acceptance of trusts \r\n13. Disclaimer of trusts \r\n14. Registration of properties \r\nCHAPTER III \r\nADMINISTRATION OF TRUSTS \r\n15. Trusts to be registered \r\n15-A. Registration of specialized trusts \r\n15-B. The regulator, his powers and appeal against his orders \r\n16. Registration of Trusts \r\n17. Refusal of application for registration \r\n \r\n \r\n17-A. Appeal \r\n18. Inspection of records and punishments \r\n19. Power to obtain the registration record \r\n20. Register of Trusts \r\n21. Access to the information \r\n22. Legal arrangement for holding the property \r\nCHAPTER IV \r\nDUTIES AND LIABILITIES OF TRUSTEES \r\n23. Trustee to execute trust \r\n24. Trustee to collect and hold information \r\n25. Trustee to inform himself of state of trust-property \r\n26. Trustee to protect title to trust-property \r\n27. Trustee not to set up title adverse to beneficiary \r\n28. Care required from trustee \r\n29. Conversion of perishable property \r\n30. Trustee to be impartial \r\n31. Trustee to prevent waste \r\n32. Accounts and information \r\n33. Investment of trust-money \r\n34. Power to purchase redeemable stock at a premium \r\n35. Sale by trustee directed to sell within specified time \r\n36. Liability for breach to trust \r\n37. No set-off allowed to trustee \r\n38. Non-liability for predecessor's default \r\n39. Non-liability for co-trustee's default \r\n40. Several liabilities of co-trustee \r\n41. Non-liability of trustee paying without notice of transfer by beneficiary \r\n \r\n \r\n42. Liability of trustees where beneficiary's interest is forfeited to \r\n Government \r\n43. Indemnity of trustees \r\nCHAPTER V \r\nRIGHTS AND POWERS OF TRUSTEES \r\n44. Right to title-deed \r\n45. Right to reimbursement of expenses \r\n46. Right to indemnity from gainer by breach of trust \r\n47. Right to apply to Court for opinion in management of trust-property \r\n48. Right to settlement of accounts \r\n49. General authority of trustee \r\n50. Power to sell in lots, an either by public auction or private contract \r\n51. Power to sell, buy-in and re-sell \r\n52. Time allowed for selling trust-property \r\n53. Power to convey \r\n54. Power to vary investments \r\n55. Power to apply property of minors for their maintenance \r\n56. Power to give receipts \r\n57. Power to compound, etc \r\n58. Power to several trustees of whom one disclaims or dies \r\n59. Suspension of trustee's powers by decree \r\nCHAPTER VI \r\nDISABILITIES OF TRUSTEES \r\n60. Trustees cannot renounce after acceptance \r\n61. Trustee shall not delegate \r\n62. Co-trustees shall not act singly \r\n63. Control of discretionary power \r\n64. Trustee may not charge for services \r\n \r\n \r\n65. Trustee shall not use trust-property for his own profit \r\n66. Trustee or his agent shall not buy \r\n67. Trustee shall not buy beneficiary's interest without permission \r\n68. Trustee for purchase \r\n69. Co-trustee shall not lend to one of themselves \r\nCHAPTER VII \r\nRIGHTS AND LIABILITIES OF BENEFICIARIES \r\n70. Rights to rents and profits \r\n71. Right to specific execution and transfer of possession \r\n72. Right to inspect and take copies of instrument of trust accounts, etc \r\n73. Right to transfer beneficial interest \r\n74. Right to sue for execution of trust \r\n75. Right to proper trustees \r\n76. Right to compel to any act of duty \r\n77. Wrongful purchase by trustee \r\n78. When trust-property is into the hands of third persons \r\n79. Saving of rights of certain transferees \r\n80. Acquisition by trustee of trust-property wrongfully converted \r\n81. Right in case of blended property \r\n82. Wrongful employment by partner -trustee of trust -property for \r\n partnership purposes \r\n83. Liability of beneficiary joining in breach of trust \r\n84. Rights and liabilities of beneficiary's transferee \r\nCHAPTER VIII \r\nVACATING THE OFFICE OF TRUSTEE \r\n85. Office how vacated \r\n86. Discharge of trustee \r\n87. Petition to be discharged from trust \r\n \r\n \r\n88. Appointment of new trustees on death, etc \r\n89. Appointment by Court of new trustees \r\n90. Vesting of trust-property in new trustees \r\n91. Survival of trust \r\nCHAPTER IX \r\nEXTINCTION OF TRUSTS \r\n92. Trust how extinguished \r\n93. Revocation of trust \r\n94. Revocation not to defeat what trustees have duly done \r\nCHAPTER X \r\nCERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS \r\n95. Where it does not appear that transferor intended to dispose of \r\n beneficial interest \r\n96. Transfer to one for consideration paid by another \r\n97. Trust incapable of execution or executed without exhausting trust -\r\n property \r\n98. Transfer for illegal purpose \r\n99. Bequest for illegal purpose or of which revocation is prevented by \r\n coercion \r\n100. Transfer pursuant to rescindable contract \r\n101. Debtor becoming creditor's representative \r\n102. Advantage gained by fiduciary \r\n103. Advantage gained by exercise of undue influence \r\n104. Advantage gained by qualified owner \r\n105. Property acquired with notice of existing contract \r\n106. Purchase by person contracting to buy property to be held on trust \r\n107. Advantage secretly gained by one of several compounding creditors \r\n108. Constructive trusts in cases not expressly provided for \r\n109. Obligator's duties, liabilities and disabilities \r\n \r\n \r\n110. Saving of rights of bona fide purchasers \r\nCHAPTER XI \r\nMiscellaneous \r\n111. Power to make rules \r\n112. Repeal and saving \r\n \r\n \r\n \r\nTEXT \r\n1\r\nTHE PUNJAB TRUSTS ACT 2020 \r\n(XXI of 2020) \r\n [10th September, 2020] \r\nAn \r\nAct \r\nto revise and modify the law relating to trusts. \r\nIt is necessary to revise and modify the law relating to trusts, and to make provisions \r\nfor the ancillary matters. \r\nBe it enacted by Provincial Assembly of the Punjab as follows: \r\nCHAPTER I \r\nPRELIMINARY \r\n1. Short title, extent and commencement .− (1) This Act may be cited as the \r\nPunjab Trusts Act 2020. \r\n(2) It extends to whole of the Punjab. \r\n(3) It shall come into force at once. \r\n2. Application.− Nothing contained in this Act shall affect the Muslim law as to \r\nwaqf, or the mutual relations of the m embers of an undivided family as determined \r\nby any customary or personal law, or apply to public or private religious or charitable \r\nendowments. \r\n3. Definitions.− In this Act: \r\n(a) “Assistant Commissioner” means an Assistant Commissioner \r\nappointed under the Punjab Civil Administration Act 2017 (III of 2017); \r\n(b) “author” means \r\n2\r\n[any] person who reposes or declares his confidence \r\nin a trustee, and assigns a property to a trustee for the benefit of a \r\nbeneficiary; \r\n(c) “authorities” means an „investigating or prosecuting age ncy‟ and the \r\n„Financial Monitoring Unit‟ as defined in the Anti -Money Laundering \r\nAct, 2010 (VII of 2010); \r\n(d) “beneficiary” means \r\n3\r\n[any] person for whose benefit the confidence is \r\naccepted; \r\n \r\n1This Act was passed by the Provincial Assembly of the Punjab on 02 September 2020; assented to by the Governor of the \r\nPunjab on 08 September 2020; and, was published in the Punjab Gazette (Extraordinary), dated: 10 September 20 20, pp. \r\n1035-1052 \r\n2Substituted for the words “a natural” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab \r\nGazette (Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.3. \r\n3Substituted for the words “a natural” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab \r\nGazette (Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.3. \r\n \r\n \r\n(e) “breach of trust” means a breach of any duty imposed on a trustee by \r\nany law for the time being in force; \r\n(f) “Department” means Revenue Department of the Board of Revenue of \r\nthe Government; \r\n(g) “Director” means Director of Land Records, Punjab; \r\n(h) “Committee” means the District Intelligence Committee notified by \r\nHome Department of the Government for each district; \r\n(i) “Financial Monitoring Unit” means the Financial Monitoring Unit as \r\ndefined in the Anti-Money Laundering Act, 2010 (VII of 2010); \r\n(j) “Government” means Government of the Punjab; \r\n(k) “instrument” means an instrument of trust through w hich a trust is \r\ndeclared; \r\n(l) “interest” means right of a beneficiary against a trustee; \r\n(m) “investigating or prosecuting agency” means the investigating or \r\nprosecuting agency as defined in the Anti -Money Laundering Act, 2010 \r\n(VII of 2010); \r\n(n) “notice”: a person is said to have “notice” of a fact either when he \r\nactually knows that fact, or when, but for willful abstention from inquiry \r\nor gross negligence, he would have known it, or when information of \r\nthe fact is given to or obtained by his agent, under the circumsta nces \r\nmentioned in section 229 of the Contract Act, 1872 (IX of 1872); \r\n(o) “prescribed” means prescribe by the rules made under this Act; \r\n4\r\n[(oo) “regulator” means a regulator as mentioned in clause (1) of Schedule \r\nIV of the Anti -Money Laundering Act, 2010 (VII of 2010) 5[or, as the \r\ncase may be, Director General Labour Welfare, Labour and Human \r\nResource Department];] \r\n(p) “reporting entity” means an entity specified under the Anti -Money \r\nLaundering Act, 2010 (VII of 2010); \r\n(q) “trust property” means the subject matter o f a trust whether movable or \r\nimmovable property; \r\n(r) “trust” means an obligation annexed to the ownership of a property, \r\nand arising out of a confidence reposed in and accepted by a trustee, \r\nor declared and accepted by him, for the benefit of another and the \r\nowner; \r\n6\r\n[*****] \r\n \r\n4Inserted by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette (Extraor dinary), dated: \r\n20 December 2022, pp. 2869-2870, s.3. \r\n5Inserted by the Punjab Trusts (Amendment) Act 2026 (XLVII of 2026), published in the Punjab Gazette (Extraordinary), dated: \r\n24 June 2026, pp. 7413-7414, s.2 (a). \r\n6Omitted the word “and” by the Punjab T rusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.3. \r\n \r\n \r\n(s) “trustee” means a person who accepts the confidence of an author for \r\nthe benefit of a beneficiary\r\n7\r\n[; and] \r\n8\r\n[(t) “specialized trust ” means a trust created for the establishment of \r\ncollective investment schemes, collective investment vehicles, private \r\nfunds, pension funds, real estate investment trust, exchange trade \r\nfunds, private equity and venture capital funds, debt securities trusts, \r\ntrusts relating to any security issued by the Federal or a Provincial \r\nGovernment through capital markets, p rovident funds, gratuity funds, \r\nsuperannuation funds, employee benefit trust or any other trust, \r\nadministered by the regulator \r\n9\r\n[* * * * * * * * * * * *]]. \r\nCHAPTER II \r\nCREATION OF TRUSTS \r\n4. Lawful purpose.− (1) A trust may be created for any lawful purpose, and the \r\npurpose of a trust is lawful unless: \r\n(a) it is forbidden by law; or \r\n(b) it is of such a nature that it defeats the provisions of any law for the \r\ntime being in force; or \r\n(c) it is fraudulent; or \r\n(d) it involves or implies injury to the person or property of another; or \r\n(e) the court regards it as immoral or opposed to public policy. \r\n(2) Every trust which has an unlawful purpose shall be void, and where a \r\ntrust is created for more than one purpo ses and one of the purposes is unlawful, the \r\nwhole trust shall be void. \r\n5. Validity of Trusts.− (1) No trust in relation to an immovable property shall be \r\nvalid unless declared by a non -testamentary instrument in writing signed by the \r\nauthor of the trust and the trustee, and duly registered, or by the will of the author of \r\nthe trust or of the trustee and ownership of the property is transferred to the trust. \r\n(2) No trust in relation to movable property shall be valid unless declared \r\nin the manner as given under subsection (1), or unless the ownership of the property \r\nis transferred to the trust. \r\n6. Creation of trusts .− Subject to the provisions of sections 4 and 5, a trust is \r\ncreated when the author of the trust indicates with reasonable certainty in writing: \r\n(a) an intention to create a trust; \r\n(b) purpose of trust; \r\n \r\n7Substituted for the “full stop” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Ga zette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.3. \r\n8Added by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022), published in the Punjab Gazette (Extraordinary), dated: 20 \r\nDecember 2022, pp. 2869-2870, s.3. \r\n9Omitted by the Punjab Trusts (Amendment) Act 2026 (XLVII of 2026), published in the Punjab Gazette (Extraordinary), dated: \r\n24 June 2026, pp. 7413-7414, s.2 (b). \r\n \r\n \r\n \r\n(c) trustee; \r\n(d) beneficiary; \r\n(e) trust property; and \r\n(f) transfers the trust property to the trust, unless the trust is declared by \r\nwill or the author is himself to be the trustee. \r\n7. Who may create a trust .− A trust may be created by \r\n10\r\n[any] person \r\ncompetent to contract under the Contract Act, 1872 (IX of 1872) , or, with the \r\npermission of a Civil Court of original jurisdiction, on behalf of a minor. \r\n8. Subject matter of trusts .− The subject matter of a trust shall be a property \r\ntransferable to the trust. \r\n9. Who may be a beneficiary .− Every \r\n11\r\n[*****] person capable of holding a \r\nproperty may be a beneficiary. \r\n12\r\n[*****] \r\n10. Disclaimer by a beneficiary .− A proposed beneficiary may renounce his \r\ninterest in the trust by disclaimer addressed to the trustee, or by setting up, with \r\nnotice of the trust, a claim inconsistent therewith. \r\n11. Who may be a trustee . − Every \r\n13\r\n[*****] person capable of holding a property \r\nmay be a trustee; but, where the trust involves the exercise of discretion, such \r\nperson shall not execute it unless he is competent to contract under the Contract \r\nAct, 1872 (IX of 1872). \r\n14\r\n[*****] \r\n12. Acceptance of trusts .− A trust shall be accepted by the trustee indicating \r\nwith reasonable certainty in writing, and the trustee accepting the trust shall provide \r\nan affidavit that the trustee has read and understood the duties and liabilities of the \r\ntrustee as mentioned in Chapter-IV of this Act. \r\n13. Disclaimer of trusts .− (1) Instead of accepting a trust, the intended trustee \r\nmay, within a period of sixty days, disclaim it and such disclaimer shall prevent the \r\ntrust property from vesting in him. \r\n \r\n10Substituted for the words “a natural” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab \r\nGazette (Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.4. \r\n11Omitted the word “natural” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.5. \r\n12Omitted the “Explanation” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.5. \r\n13Omitted the word “natural” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022), published in the Punjab Gazette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.6. \r\n14Omitted the “Explanation” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette \r\n(Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.6. \r\n \r\n \r\n(2) In case of more than one trustees, if one of the trustees disclaims to be \r\na trustee, it shall not automatically confer the disclaiming trustee‟s rights on the other \r\ntrustees. \r\n(3) The author shall either; (a) explicitly allow the co -trustees to proceed in \r\ncase of any of the member‟s disclaimer; or, (b) write a new trust-deed. \r\n14. Registration of properties.− All movable and immovable properties shall be \r\nregistered in the name of the trust under the Registration Act, 1908 (XVI of 1908). \r\nCHAPTER III \r\nADMINISTRATION OF TRUSTS \r\n15\r\n[15. Trusts to be registered .- (1) No trust shall be functional unless it is \r\nregistered with the Director under this Act in such manner as may be prescribed. \r\n(2) All trusts created under the Trusts Act, 1882 (II of 1882) or registered \r\nunder the Registration Act, 1908 (XVI of 1908) or under any other law for the time \r\nbeing in force shall get registered under subsection (1) within such timeframe as \r\nmay be notified by the Government. \r\n(3) A trust which fails to get registered under this section shall cease to \r\nfunction or operate in any manner, and necessary action shall be initiated against \r\nsuch trust under section 92 of this Act.] \r\n16\r\n[15-A. Registration of specialized trusts .- (1) For registration of a specialized \r\ntrust under this Act, the trustee shall provide to the Director a No Objection \r\nCertificate from the concerned regulator containing the prescribed information. \r\n(2) Where the trustee provides the No Objection Certificate under \r\nsubsection (1), it shall be deemed that the requirements for registration of trust \r\nunder section 16 have been fulfilled, and the Director shall register the specialize d \r\ntrust. \r\n(3) A specialized trust created prior to commencement of this Act shall be \r\ndeemed to have been registered under section 15 of this Act. \r\n (4) A specialized trust, which is deemed to have been registered under \r\nsubsection (3), shall be issued a cer tificate of registration under section 16 of this \r\nAct. \r\n(5) A specialized trust which fails to fulfill the requirements of subsection \r\n(1) shall cease to function or operate in any manner, and necessary action shall be \r\ninitiated against such trust under section 92 of this Act.] \r\n \r\n \r\n \r\n \r\n \r\n15Substituted by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab Gazette (Extraordinary), \r\ndated: 20 December 2022, pp. 2869-2870, s.7. \r\n16Inserted by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022), published in the Punjab Gazette (Extraordinary), dated: \r\n20 December 2022, pp. 2869-2870, s.8. \r\n \r\n \r\n17\r\n[15-B. The regulator, his powers and appeal against his orders .- (1) For the \r\npurpose of this Act, Director General Labour Welfare, Labour and Human Resource \r\nDepartment shall be the regulator for issuance of No Objection Certificat e in the \r\nmatters other than those within jurisdiction of the regulator provided in Schedule IV \r\nof the Anti-Money Laundering Act, 2010 (VII of 2010). \r\n (2) The regulator provided under sub -section (1) may, in such manner, on \r\nsuch terms and conditions and on payment of such fee as may be prescribed, issue \r\nNo Objection Certificate and may, for the reasons to be recorded in writing, refuse to \r\nissue No Objection Certificate, or cancel No Objection Certificate issued by him, \r\nhowever, before cancellation, an opport unity of hearing shall be provided to the \r\nperson likely to be affected thereby. \r\n (3) In case No Objection Certificate is refused or cancelled under sub -\r\nsection (2), the aggrieved person may, within thirty days of such refusal or \r\ncancellation, file an appea l before Secretary, Labour and Human Resource \r\nDepartment, whose decision shall be final.] \r\n16. Registration of Trusts .− (1) For registration of a trust under this Act, a \r\ntrustee shall file an application before the Assistant Commissioner concerned \r\ncontaining the following information: \r\n(a) details of the author; \r\n(b) details of the trustees; \r\n(c) details of the beneficiaries; \r\n(d) details of any other natural person exercising ultimate effective control \r\nover the trust to the satisfaction of the Department; and \r\n(e) any other information as may be prescribed. \r\nExplanation: In case of more than one trustees, all the trustees may \r\nnominate one trustee who shall be responsible for the provision of information \r\nunder this section. \r\n(2) The Assistant Commissioner concern ed shall forward the application \r\nreceived under subsection (1) to the Director. \r\n(3) The Director shall request to verify the contents and particulars of the \r\napplication before the registration through the investigating or prosecuting agencies \r\nwhich shall submit the verified report to the Director within fourteen days of receiving \r\nthe request from the Director. \r\n(4) After receipt of the verified report mentioned in subsection (3), the \r\nDirector shall register the trust and issue a Certificate of Registration to the trustee. \r\n17. Refusal of application for registration. − The Director, for the reasons to be \r\nrecorded in writing, may refuse an application for registration of a trust if: \r\n(a) the purpose of the trust is unlawful or the trust proceeds are suspected \r\nto be proceeds of crime, as the investigating or prosecuting agencies \r\n \r\n17Inserted by the Punjab Trusts (Amendment) Act 2026 (XLVII of 2026), published in the Punjab Gazette (Extraordinary), dated: \r\n24 June 2026, pp. 7413-7414, s.3. \r\n \r\n \r\nmay report to the Director under section 16, and the Director shall \r\nrefer the application to law enforcement agencies for legal action; or \r\n(b) any of the members of the trust including the author , the trustee, the \r\nbeneficiary or any other person exercising ultimate effective control \r\nover the trust are declared proscribed by Home Department of the \r\nGovernment, or associated with the proscribed organizations under \r\nthe Anti -Terrorism Act, 1997 ( XXVII of 1997 ) or under the United \r\nNations Security Council Act, 1948, and in such cases as mentioned in \r\nsection 18, the Assistant Commissioner concerned shall share the \r\ndetails of such individuals with Ministry of Interior and Ministry of \r\nForeign Affairs, Government of Pakistan through Home Department of \r\nthe Government; or \r\n(c) the District Intelligence Coordination Committee concerned considers \r\nthat the trust is a threat to national security; or \r\n(d) the author, the trustee, the beneficiary, or any person acting on their \r\nbehalf fails to provide the complete personal details required for the \r\nregistration and functioning of the trust under this Act; or \r\n(e) any other reason as may be prescribed. \r\n18\r\n[17-A. Appeal.− A trustee, aggrieved by a decision of the Director, may, within \r\nthirty days of such order, file an appeal before the Senior Member, Board of \r\nRevenue, Punjab, who shall decide the appeal within sixty days, and his decision \r\nthereon shall be final.] \r\n18. Inspection of records and punishments .− (1) The Assistant Commissioner \r\nconcerned or the Director or the Department may require any information relating to \r\na trust from the trustee for any purpose, and shall have the power to inspect such \r\nrecord at any time. \r\n(2) The Assistant Commissioner shall share, through Home Department of \r\nthe Government, with the authorities, upon written request, the information obtained \r\nunder subsection (1). \r\n(3) The Assistant Commissioner shall share the information obtained \r\nunder subsection (1) relating to assets of a trust and beneficiaries with the reporting \r\nentity upon written request. \r\n(4) The Director upon intimation by the Assistant Commissioner concerned \r\nmay impose fine up to rupees one million upon a trustee who fails to provide \r\ninformation required under this section or section 21 or 24 of this Act. \r\n(5) For the contravention of section 21, a trustee, in addition to the fine \r\nmentioned under subsection (4), shall also be liable to imprisonment for a term which \r\nmay extend to six months but shall not be less than three months. \r\n(6) The Court of Ma gistrate first class shall take cognizance of the \r\noffences mentioned in subsection (5) upon a complaint in writing by the Director, and \r\n \r\n18Inserted by the Punjab Trusts (Amendment) Act 2026 (XLVII of 2026), published in the Punjab Gazette (Extraordinary), dated: \r\n24 June 2026, pp. 7413-7414, s.4. \r\n \r\n \r\n \r\nshall try the offences in a summary manner as provided in the Code of Criminal \r\nProcedure, 1898 (V of 1898). \r\n(7) The Director may take over the properties of a trust or freeze its assets \r\nor remove a trustee or a beneficiary from the trust and assign new trustees or \r\nbeneficiaries through a legal order from a court of original jurisdiction in case the \r\ntrust or trustee or benef iciary is convicted of a criminal offense, including terrorist \r\nfinancing, money laundering or a threat to national security. \r\n19. Power to obtain the registration record .− The Department shall obtain the \r\ncertified copies of registration of trusts record from Sub-Registrar or the Registrar, as \r\nthe case may be, appointed under the Registration Act, 1908 (XVI of 1908) , held by \r\nthem before the commencement of this Act, within a period of sixty days from the \r\ndate of commencement of this Act, and, the Department shall make the record of \r\ntrusts in conformity with the provisions of this Act. \r\n20. Register of Trusts.− \r\n19\r\n[(1) The Director at provincial level and the \r\n20\r\n[Assistant \r\nCommissioner] at tehsil level shall jointly maintain a register of the trusts in such \r\nmanner as may be determined by the Department.] \r\n(2) The register shall contain information, including but no t limited to the \r\nname and details of every trust, its purpose, author, trustees, beneficiaries, any \r\nperson exercising ultimate effective control over the trust and such other information \r\nas may be required by the Department. \r\n(3) The information under subs ection (1) shall also include the details if \r\nany of the persons associated with the trust is living in Pakistan or outside Pakistan \r\nalong with their residential addresses. \r\n(4) The Department shall determine the extent of the details mentioned in \r\nsubsections (1), (2) and (3) to be made public in such manner as may be \r\n21\r\n[determined by the Department]. \r\n21. Access to the information .− (1) The Department or the Director through the \r\nAssistant Commissioner concerned may at any time require any information relating \r\nto a trusts from the trustee, and the trustee shall be bound to provide such \r\ninformation. \r\n(2) For purposes of domestic and international cooperation, the authorities \r\nmay at any time, through Home Department of the Government, require any \r\ninformation relat ing to a trust from the trustee, and the trustee shall provide the \r\ninformation in such manner and within such period of time as may be prescribed. \r\n(3) The reporting entity may, through the Department, in such manner and \r\nwithin such period of time as may be prescribed, obtain any information from a \r\ntrustee about the details of assets of the trust, residential addresses of the trustees \r\nand details of the beneficiaries. \r\n \r\n19Substituted by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Pun jab Gazette (Extraordinary), \r\ndated: 20 December 2022, pp. 2869-2870, s.9. \r\n20Substituted for the words \"Assistant Director\" by the Punjab Trusts (Amendment) Act 2026 (XLVII of 2026) , published in the \r\nPunjab Gazette (Extraordinary), dated: 24 June 2026, pp. 7413-7414, s.5. \r\n21Substituted for the word “prescribed” by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022) , published in the Punjab \r\nGazette (Extraordinary), dated: 20 December 2022, pp. 2869-2870, s.9. \r\n \r\n \r\n22. Legal arrangement for holding the property .− A trust may hold immovable \r\nand movable property in its name, or may dispose of such property through a \r\ntrustee. \r\nCHAPTER IV \r\nDUTIES AND LIABILITIES OF TRUSTEES \r\n23. Trustee to execute trust .− (1) The trustee shall be bound to fulfill the \r\npurpose of the trust, and to obey the directions of the auth or given at the time of its \r\ncreation, except as modified by the consent of all the beneficiaries being competent \r\nto contract. \r\n(2) Where the beneficiary is incompetent to contract, his consent may, for \r\nthe purposes of this section, be given by a Civil Court of original jurisdiction. \r\n(3) Nothing in this section shall be deemed to require a trustee to obey any \r\ndirection which is impracticable, illegal or manifestly injurious to the beneficiaries. \r\n(4) Unless a contrary intention be expressed, the purpose of a trust for the \r\npayment of debts shall be deemed to be; (a) to pay only the debts of the author of \r\nthe trust existing and recoverable at the date of the instrument of trust, or, when such \r\ninstrument is a will, at the date of his death; and, (b) in the case of debts not bearing \r\ninterest, to make such payment without interest. \r\n(5) A trustee, or all of the trustees, as the case may be, shall be bound to \r\ndisclose the fact that they are the trustees when entering into a business relationship \r\nor carrying out an occasional transaction with a reporting entity. \r\n24. Trustee to collect and hold information .− (1) A trustee or each of the \r\ntrustees, as the case may be, shall collect and hold information about the author, the \r\ntrustees, the beneficiaries, and any other natu ral person exercising ultimate effective \r\ncontrol over the trust to his satisfaction and requirement of the Department, before \r\nthe execution of the trust as mentioned under this Act. \r\n(2) The trustee shall provide the updated information under this Act to th e \r\nAssistant Commissioner, in such manner and within such period of time as may be \r\nprescribed and in case of more than one trustees, only one trustee will be nominated \r\nby other co-trustees for the purpose of provision of information. \r\n(3) The trustee shall c ollect and hold basic information about the other \r\nservice providers to the trust including, but not limited to, investment advisors or \r\nmanagers, accountants or tax advisors, and, provide this information to the Assistant \r\nCommissioner even after the registr ation of the trust, in such manner as may be \r\nprescribed and in case of more than one trustee, only one trustee will be nominated \r\nby other co-trustees for the purpose of provision of information. \r\n(4) A trustee shall further inform the Department and law enf orcement \r\nagencies if it comes to his knowledge any illegal utilization of the trust money by the \r\nbeneficiaries, after and during the execution of the trust. \r\n25. Trustee to inform himself of state of trust -property.– A trustee shall be \r\nbound to acquaint himself, as soon as possible, with the nature and circumstances of \r\nthe trust -property; to obtain, where necessary, a transfer of the trust -property to \r\n \r\n \r\nhimself; and (subject to the provisions of the instrument of trust) to get in trust -\r\nmoneys invested on insufficient or hazardous security. \r\nIllustrations \r\n(a) The trust -property is a debt outstanding on personal security. The \r\ninstrument of trust gives the trustee no discretionary power to leave the debt so \r\noutstanding. The trustee's duty is to recover the debt without unnecessary delay. \r\n(b) The trust-property is money in the hands of one of two co -trustees. No \r\ndiscretionary power is given by the instrument of trust. The other co -trustee shall not \r\nallow the former to retain the money for a longer period than the c ircumstances of \r\nthe case required. \r\n26. Trustee to protect title to trust -property.− A trustee shall be bound to \r\nmaintain and defend all such suits, and (subject to the provisions of the instrument of \r\ntrust) to take such other steps as, regards being had to the nature and amount or \r\nvalue to the trust -property, may be reasonably requisite for the preservation of the \r\ntrust-property and the assertion or protection of the title thereto. \r\nIllustrations \r\nThe trust-property is immovable property, which has been give n to the author \r\nof the trust by an unregistered instrument. Subject to the provisions of the law for the \r\nregistration of the documents, the trustee's duty is to cause the instrument to be \r\nregistered. \r\n27. Trustee not to set up title adverse to beneficiary.− The trustee shall not for \r\nhimself of another set up or aid any title to the trust -property adverse to the interest \r\nof the beneficiary. \r\n28. Care required from trustee .− A trustee is bound to deal with the trust -\r\nproperty as carefully as a man of ordinary p rudence would deal with such property if \r\nit were his own; and, in the absence of a contract to the contrary, a trustee so \r\ndealing is not responsible for the loss, destruction or deterioration of the trust -\r\nproperty. \r\n29. Conversion of perishable property .− Where the trust is created for the \r\nbenefit of several persons in succession, and the trust-property is of a wasting nature \r\nor a future or reversionary interest, the trustee is bound unless an intention to the \r\ncontrary may be inferred from the instrument of trust, to convert the property into \r\nproperty of a permanent and immediately profitable character. \r\n30. Trustee to be impartial .− (1) Where there are more beneficiaries than one, \r\nthe trustee is bound to be impartial, and shall not execute the trust for the advantage \r\nof one at the expense of another. \r\n(2) Where the trustee has a discretionary power, nothing in this section \r\nshall be d eemed to authorize the Court to control the exercise of such discretion \r\nreasonably and in good faith. \r\n31. Trustee to prevent waste .− Where the trust is created for the benefit to \r\nseveral persons in succession and one of them is in possession of the trust -property, \r\n \r\n \r\nif he commits, or threatens to commit, any act, which is destructive, or permanently \r\ninjurious thereto, the trustee is bound to take measures to prevent such act. \r\n32. Accounts and information .− A trustee or each of the trustees, as the case \r\nmay be, shall be bound to: \r\n(a) keep clear and accurate accounts of the trust-property, and income; \r\n(b) furnish to the beneficiary at the request of the beneficiary at all \r\nreasonable times with full and accurate information as to the amount \r\nand state of the trust-property; \r\n(c) update such information as may be prescribed about the author, \r\nbeneficiaries, trustees, any other natural person exercising ultimate \r\ncontrol over the trust, trust assets and incomes. \r\n(d) get accounts audited by a third party at least once in a year; \r\n(e) submit financial reports to the Assistant Commissioner in every \r\nfinancial year; and \r\n(f) maintain the information collected under this section, and, section 24 \r\nabove for a period not less than the five years after their involvement \r\nwith the trust ceases, or, the trust is extinguished. \r\n33. Investment of trust -money.− Where the trust -property consists of money \r\nand cannot be applied immediately or at an early date to the purposes of the trust, \r\nthe trustee is bound (subject to any direction contained in the instrument of trust) to \r\ninvest the money on the following securities, and on no other: \r\n(a) in promissory notes, debentures, stock or other securities of a \r\nProvincial or Federal Government; \r\n provided that securities, both the principal whereof and the \r\ninterest whereon shall have been fully and unconditionally guaranteed \r\nby any such Government, shall be deemed, for the purposes of this \r\nclause, to be securities of such Government; or \r\n(b) security expressly authorized by the instrument of trust, or any other \r\nsecurity as may be prescribed. \r\n34. Power to purchase redeemable stock at a premium.− A trustee may invest \r\nin any of the securities mentioned in section 33, notwithstanding that the same may \r\nbe redeemable and that the price exceeds the redemption value, and a trustee may \r\nretain until redemption any redeemable stock, fund or s ecurity which may have been \r\npurchased in accordance with this section. \r\n35. Sale by trustee directed to sell within specified time .− Where a trustee, \r\ndirected to sell within a specified time extends such time, the burden of proving, as \r\nbetween himself and t he beneficiary, that the latter is not prejudiced by the \r\nextension, lies upon the trustee unless the extension has been authorized by a Civil \r\nCourt of original jurisdiction. \r\n36. Liability for breach to trust .− Where the trustee commits a breach of trust, \r\nhe is liable to make good the loss which the trust -property or the beneficiary has \r\n \r\n \r\nthereby sustained, unless the beneficiary has, by fraud, induced the trustee to \r\ncommit the breach, or the beneficiary, being competent to contract, has himself, \r\nwithout coercion or undue influence having been brought to bear on him, concurred \r\nin the breach, or subsequently acquiesced therein, with full knowledge of facts of the \r\ncase and of his rights as against the trustee. \r\nProvided that a trustee committing a breach of trust is not liable to pay interest \r\nexcept in the following cases: \r\n(i) where he has actually received interest; \r\n(ii) where the breach consists in unreasonable delay in paying trust-money \r\nto the beneficiary; \r\n(iii) where the trustee ought to have received interest, but has not done so; \r\n(iv) where he may be fairly presumed to have received interest; \r\nExplanation: The trustee shall be liable, in case (i), to account for the interest \r\nactually received, and, in cases (ii), (iii) and (iv), to account for simple interest \r\nat the rate of six per cent per annum, unless the Court otherwise directs; \r\n(v) where the breach consists in failure to invest trust -money and to \r\naccumulate the interest or dividends thereon, he shall be liable to \r\naccount for compound interest (with half -yearly rests) at the same rate; \r\nor \r\n(vi) where the breach consists in the employment of trust -property or the \r\nproceeds thereof in trade or business, he shall be liable to account, at \r\nthe option of the beneficiary, either for compound interest (with half -\r\nyearly rests) at the same rate, or for the net profits made by such \r\nemployment. \r\n37. No set-off allowed to trustee .− A trustee who is liable for a loss occasioned \r\nby a breach of trust in respect of one portion of the trust property shall not set -off \r\nagainst his liability again which has acc rued to another portion of the trust -property \r\nthrough another and distinct breach of trust. \r\n38. Non-liability for predecessor's default.− Where a trustee succeeds another, \r\nhe shall not, as such, liable for the acts or defaults of his predecessor. \r\n39. Non-liability for co -trustee's default .− (1) Subject to the provisions of \r\nsections 26, and 28, one trustee shall not, as such, liable for a breach of trust \r\ncommitted by his co-trustee. \r\nProvided that, in the absence of an express declaration to the contrary in the \r\ninstrument of trust, a trustee shall be so liable: \r\n(a) where he has delivered trust-property to his co-trustee without seeing to \r\nits proper application; \r\n(b) where he allows his co -trustee to receive trust -property and fails to \r\nmake due inquiry as to the co -trustee's dealings therewith, or allows \r\nhim to retain it longer than the circumstances of the case reasonably \r\nrequire; or \r\n \r\n \r\n(c) where he becomes aware of a breach of trust committed or intended by \r\nhis co -trustee, and either actively conceals it or does not within a \r\nreasonable time take proper steps to protect the beneficiary's interest. \r\n(2) A co-trustee who joins in signing a receipt for trust-property and proves \r\nthat he has not received the same shall not be answerable, by reason of such \r\nsignature only, for loss or misapplication of the property by his co-trustee. \r\n40. Several liabilities of co -trustee.− (1) Where co -trustees jointly commit a \r\nbreach of trust, or where one of them by his neglect enables the other to commit a \r\nbreach of trust, each shall be liable to the beneficiary for the whole of the loss \r\noccasioned by such breach: \r\nprovided that as between the trustees themselves, if one is less guilty than \r\nanother and has had to refund the loss, the former may compel the latter, or his legal \r\nrepresentative to the extent of the assets he has received, to made good such loss; \r\nand, if all are equally guilty , any one or more of the trustees who has had to refund \r\nthe loss may compel the others to contribute. \r\n(2) Nothing in this section shall be deemed to authorize a trustee, who has \r\nbeen guilty of fraud, to institute a suit to compel contribution. \r\n41. Non-liability of trustee paying without notice of transfer by beneficiary .− \r\nWhen any beneficiary's interest becomes vested in another person, and the trustee, \r\nnot having notice of the vesting, pays or delivers trust -property to the person who \r\nwould have been entitled thereto in the absence of such vesting, the trustee shall not \r\nbe liable for the property so paid or delivered. \r\n42. Liability of trustees where beneficiary's interest is forfeited to \r\nGovernment.− When the beneficiary's interest is forfeited or awarded b y legal \r\nadjudication to the Government, the trustee is bound to hold the trust -property to the \r\nextent of such interest for the benefit of such person in such manner as the \r\nGovernment may direct in this behalf. \r\n43. Indemnity of trustees .− Subject to the pro visions of the instrument of trust \r\nand of sections 36 and 39, trustees shall be respectively chargeable only for such \r\nmoneys, stocks, funds and securities as they respectively actually receive, and shall \r\nnot be answerable the one for the other of them, nor for any banker, broker or other \r\nperson in whose hands any trust -property may be placed, nor for the insufficiency or \r\ndeficiency of any stocks, funds or securities, nor otherwise for involuntary losses. \r\nCHAPTER V \r\nRIGHTS AND POWERS OF TRUSTEES \r\n44. Right to title-deed.− A trustee shall be entitled to have in his possession the \r\ninstrument of trust and all the documents of title (if any) relating solely to the trust -\r\nproperty. \r\n45. Right to reimbursement of expenses .− (1) Every trustee may reimburse \r\nhimself, or pay or discharge out of the trust -property, all expenses property incurred \r\nin or about the execution of the trust, or the realization, preservation or benefit of the \r\ntrust-property, or the protection or support of the beneficiary. \r\n \r\n \r\n(2) If the trust -property fails, the trustee shall be entitled to recover from \r\nthe beneficiary personally on whose behalf he acted, and at whose request, \r\nexpressed or implied, he made the payment, the amount of such expenses. \r\n(3) Where a trustee has by mistake made an over -payment to the \r\nbeneficiary, he may reimburse the trust -property out of the beneficiary's interest. If \r\nsuch interest fails, the trustee shall be entitled to recover from the beneficiary the \r\namount of such over-payment. \r\n46. Right to indemnity from gainer by breach o f trust .− (1) A person other \r\nthan a trustee who has gained an advantage from a breach of trust shall indemnify \r\nthe trustee to the extent of the amount actually received by such person under the \r\nbreach; and where he is beneficiary the trustee has a charge on his in terest for such \r\namount. \r\n(2) Nothing in this section shall be deemed to entitle a trustee to be \r\nindemnified who has, in committing the breach of trust, been guilty of fraud. \r\n47. Right to apply to Court for opinion in management of trust -property.− (1) \r\nAny trustee may, without instituting a suit, apply by petition to a Civil Court of original \r\njurisdiction for its opinion, advice or direction on any present questions respecting \r\nthe management or administration of the trust-property other than questions of detail, \r\ndifficulty or importance, not proper in the opinion of the Court for summary disposal. \r\n(2) A copy of petition under subsection (1) shall be served upon, and the \r\nhearing thereof may be attended by, such of the persons interested in the application \r\nas the Court thinks fit. \r\n(3) The costs of every petition under this section shall be in the discretion \r\nof the Court to which it is made. \r\n48. Right to settlement of accounts.− When the duties of a trustee, as such, are \r\ncompleted, he shall be entitled to have the accounts of his administration of the trust-\r\nproperty examined and settled; and, where nothing is due to the beneficiary under \r\nthe trust, to an acknowledgement in writing to that effect. \r\n49. General authority of trustee .− (1) In addition to the powers expr essly \r\nconferred by this Act and by the instrument of trust, and subject to the restrictions, if \r\nany, contained in such instrument, and to the provisions of section 30, a trustee may \r\ndo all acts which are reasonable and proper for the realization, protectio n or benefit \r\nof the trust -property, and for the protection or support of a beneficiary who is not \r\ncompetent to contract. \r\n(2) Except with the permission of a Civil Court of original jurisdiction, no \r\ntrustee shall lease trust -property for a term exceeding tw enty-one years from the \r\ndate of executing the lease, nor without reserving the best yearly rent that can be \r\nreasonably obtained. \r\n50. Power to sell in lots, an either by public auction or private contract .− \r\nWhere the trustee is empowered to sell any trust -property, he may sell the same \r\nsubject to prior charges or not, and either together or in lots, by public auction or \r\nprivate contract, and either at one time or at several times, unless the instrument of \r\ntrust otherwise directs. \r\n \r\n \r\n51. Power to sell, buy -in and re-sell.− The trustee making any sale may insert \r\nsuch reasonable stipulations either as to title or evidence of title, or otherwise, in any \r\nconditions of sale or contract for sale, as he thinks fit; and may also buy in the \r\nproperty or any part thereof at any sale by auction, and rescind or vary any contract \r\nfor sale, and resell the property so bought in, or as to which the contract is so \r\nrescinded, without being responsible to the beneficiary for any loss occasioned \r\nthereby. \r\n52. Time allowed for selling trust -property.− Where a trustee is directed to sell \r\ntrust-property or to invest trust-money in the purchase of property, he may exercise a \r\nreasonable discretion as to the time of effecting the sale or purchase. \r\n53. Power to convey.− For the purpose of completing any sal e, the trustee shall \r\nhave power to convey or otherwise dispose of the property sold in such manner as \r\nmay be prescribed. \r\n54. Power to vary investments .− A trustee may, at his discretion, call in any \r\ntrust-property invested in any security and invest the sa me on any of the securities \r\nmentioned or referred to in section 33, and from time to time vary any such \r\ninvestments for others of the same nature. \r\n55. Power to apply property of minors for their maintenance .− (1) Where any \r\nproperty is held by a trustee in trust for a minor, such trustee may, at his discretion, \r\npay to the guardians (if any) of such minor, or otherwise apply for or towards his \r\nmaintenance or education or advancement in life, or the reasonable expenses of his \r\nreligious worship, marriage or fun eral, the whole or any part of the income to which \r\nhe may be entitled in respect of such property; and such trustee shall accumulate all \r\nthe residue of such income by way of compound interest by investing the same and \r\nthe resulting income thereof from time to time in any of the securities mentioned or \r\nreferred to in section 33, for the benefit of the person who shall ultimately become \r\nentitled to the property from which such accumulations have arisen. \r\nProvided that such trustee may, at any time, if he think s fit, apply the whole or \r\nany part of such accumulations as if the same were part of the income arising in the \r\nthen current year. \r\n(2) Where the income of the trust - property is insufficient for the minor's \r\nmaintenance or education or advancement of life, o r the reasonable expenses of his \r\nreligious worship, marriage or funeral, the trustee may, with the permission of a Civil \r\nCourt of original jurisdiction, but not otherwise, apply the whole or any part of such \r\nproperty for or towards such maintenance, education, advancement or expenses. \r\n(3) Nothing in this section shall be deemed to affect the provisions of any \r\nlocal law for the time being in force relating to the person and property of minor. \r\n56. Power to give receipts.− Any trustees or trustee may give a receipt in writing \r\nfor any money, securities or other moveable property payable, transferable or \r\ndeliverable to them or him by reason, or in the exercise, of any trust of power; and, in \r\nthe absence of fraud, such receip t shall discharge the person paying, transferring or \r\ndelivering the same therefrom, and from seeing to the application thereof, or being \r\naccountable for any loss or misapplication thereof. \r\n \r\n \r\n57. Power to compound, etc .− (1) Two or more trustees acting togeth er may, if \r\nand as they think fit: \r\n(a) accept any composition or any security for any debt or for any property; \r\n(b) allow any time for payment of any debt; \r\n(c) compromise, compound, abandon, submit to arbitration or otherwise \r\nsettle and debt, account, claim or thing wh atever relating to the trust; \r\nand \r\n(d) for any of those purposes, enter into, give, execute and do such \r\nagreements, instruments of composition or arrangement, releases and \r\nother things as to them seem expedient, without being responsible for \r\nany loss occasioned by any act or thing so done by them in good faith. \r\n(2) The powers conferred by this section on two or more trustees acting \r\ntogether may be exercised by a sole acting trustee when by the instrument of trust, if \r\nany, a sole trustee is authorized to execute the trusts and powers thereof. \r\n(3) This section shall apply only if and as far as a contrary intention is not \r\nexpressed in the instrument of trust, if any, and shall have effect subject to the terms \r\nof that instrument and to the provisions therein contained. \r\n58. Power to several trustees of whom one disclaims or dies. − When an \r\nauthority to deal with the trust -property is given to several trustees and one of them \r\ndisclaims or dies, the authority may be exercised by the continuing trustees, unless \r\nfrom the te rms of the instrument of trust it is apparent that the authority is to be \r\nexercised by a number in excess of the number of the remaining trustees. \r\n59. Suspension of trustee's powers by decree. − Where a decree has been \r\npassed in a suit for the execution of a trust, the trustee shall not exercise any of his \r\npowers except in conformity with such decree, or with the sanction of the Court by \r\nwhich the decree has been passed, or, where an appeal against the decree is \r\npending, of the Appellate Court. \r\nCHAPTER VI \r\nDISABILITIES OF TRUSTEES \r\n60. Trustees cannot renounce after acceptance .− A trustee who has accepted \r\nthe trust shall not afterwards renounce it except: \r\n(a) with the permission of a Civil Court of original jurisdiction; or \r\n(b) when the beneficiary is competent to contract with his consent; or \r\n(c) by virtue of a special power specified in the instrument of trust. \r\n61. Trustee shall not delegate .− A trustee shall not delegate his office or any of \r\nhis duties either to a co-trustee or to a stranger, unless: \r\n(a) instrument of trust so provides, or \r\n(b) delegation is in the regular course of business, or \r\n(c) delegation is necessary, or \r\n(d) beneficiary, being competent to contract, consents to the delegation. \r\n \r\n \r\nExplanation: The appointment of an attorney or proxy to do an act merely \r\nministerial and involving no independent discretion is not a delegation within th e \r\nmeaning of this section. \r\n62. Co-trustees shall not act singly .− When there are more than one trustees, \r\nall shall join in the execution of the trust, except where the instrument of trust \r\notherwise provides. \r\n63. Control of discretionary power.− Where a discretionary power conferred on \r\na trustee is not exercised reasona bly and in good faith, such power may be \r\ncontrolled by a Civil Court of original jurisdiction. \r\n64. Trustee may not charge for services .− In the absence of express directions \r\nto the contrary contained in the instrument of trust or of a contract to the contr ary \r\nentered into with the beneficiary or the Court at the time of accepting the trust, a \r\ntrustee has no right to remuneration for his trouble, skill and loss of time in executing \r\nthe trust. \r\nExplanation: Nothing in this section shall apply to any Official T rustee, \r\nAdministrator General, Public Curator, or person holding a certificate of \r\nadministration. \r\n65. Trustee shall not use trust-property for his own profit.− A trustee shall not \r\nuse or deal with the trust -property for his own profit or for any other purpose \r\nunconnected with the trust. \r\n66. Trustee or his agent shall not buy .− No trustee whose duty is to sell trust-\r\nproperty and no agent employed by such trustee for the purpose of the sale, shall, \r\ndirectly or indirectly, buy the same or any interest therein, on his own account or as \r\nagent for a third person. \r\n67. Trustee shall not buy beneficiary's interest without permission .− No \r\ntrustee, and no person who has re cently ceased to be a trustee, shall, without the \r\npermission of a Civil Court of original jurisdiction, buy or become mortgagee or \r\nlessee of the trust -property or any part thereof; and such permission shall not be \r\ngiven unless the proposed purchase, mortga ge or lease is manifestly for the \r\nadvantage of the beneficiary. \r\n68. Trustee for purchase .− No trustee whose duty is to buy or to obtain a \r\nmortgage of lease of particular property for the beneficiary shall buy it, or any part \r\nthereof, or obtain a mortgage or lease of it, or any part thereof, for himself. \r\n69. Co-trustee shall not lend to one of themselves.− No trustee or co -trustee \r\nwhose duty is to invest trust -money on mortgage or personal security, shall invest it \r\non a mortgage by, or on the personal security of, himself, or one of his co-trustees. \r\nCHAPTER VII \r\nRIGHTS AND LIABILITIES OF BENEFICIARIES \r\n70. Rights to rents and profits .− The beneficiary has, subject to the provisions \r\nof the instrument of trust, a right to the rents and profits of the trust-property. \r\n \r\n \r\n71. Right to specific execution and transfer of possession .− (1) The \r\nbeneficiary is e ntitled to have the intention of the author of the trust specifically \r\nexecuted to the extent of the beneficiary‟s interest; and, where there is only one \r\nbeneficiary and he is competent to contract, or where there are several beneficiaries \r\nand they are comp etent to contract and all are of one mind, he or they may require \r\nthe trustee to transfer the trust -property to him or them, or to such person as he or \r\nthey may direct. \r\n(2) When property has been transferred or bequeathed for the benefit of a \r\nmarried woman, so that she shall not have power to deprive herself of her beneficial \r\ninterest, nothing in this section shall apply to such property during her marriage. \r\n72. Right to inspect and take copies of instrument of trust accounts, etc .− \r\nThe beneficiary has a ri ght, as against the trustee and all persons claiming under \r\nhim with notice of the trust, to inspect and take copies of the instrument of trust, the \r\ndocuments of title relating solely to the trust -property, the accounts of the trust -\r\nproperty and the voucher s, if any, by which they are supported, and the cases \r\nsubmitted and opinions taken by the trustee for his guidance in the discharge of his \r\nduty. \r\n73. Right to transfer beneficial interest .− The beneficiary, if competent to \r\ncontract, may transfer his interest, but subject to the law for the time being in force \r\nas to the circumstances and extent in and to which he may dispose of such interest: \r\nprovided that when property is transferred or beq ueathed for the benefit of a \r\nmarried woman, so that she shall not have power to deprive herself of her beneficial \r\ninterest, nothing in this section shall authorize her to transfer such interest during her \r\nmarriage. \r\n74. Right to sue for execution of trust .− Where no trustee is appointed or all \r\nthe trustees die, disclaim, or are discharged, or where for any other reason the \r\nexecution of a trust by the trustee is or becomes impracticable, the beneficiary may \r\ninstitute a suit for the execution of the trust, and the trust shall, so far as may be \r\npossible, be executed by the Court until the appointment of a trustee or new trustee. \r\n75. Right to proper trustees .− Subject to the provisions of the instrument of \r\ntrust, the beneficiary has a right that the trust -property shall be properly protected \r\nand held and administered by proper persons and by a proper number of such \r\npersons. \r\nExplanation: The following are not p roper persons within the meaning of this \r\nsection: \r\n(a) a person domiciled abroad; \r\n(b) alien enemy; \r\n(c) a person having an interest inconsistent with that of the beneficiary; \r\n(d) a person in insolvent circumstances; and \r\n(e) unless the personal law of the beneficiary allows otherwise, a married \r\nwoman and a minor. \r\n \r\n \r\n76. Right to compel to any act of duty .− The beneficiary has a right that his \r\ntrustee shall be compelled to perform any particular act of his duty as such, and \r\nrestrain from committing any contemplated or probable breach of trust. \r\n77. Wrongful purchase by trustee .− (1) Where a trustee has wrong fully bought \r\ntrust-property, the beneficiary has a right to have the property declared subject to the \r\ntrust or retransferred by the trustee, if it remains in his hands unsold, or, if it has \r\nbeen bought from him by any person with notice of the trust, by su ch person. But in \r\nsuch case the beneficiary shall repay the purchase -money paid by the trustee, with \r\ninterest, and such other expenses, if any, as he has properly incurred in the \r\npreservation of the property; and the trustee or purchaser shall; (a) account for the \r\nnet profits of the property; (b) be charged with an occupation -rent, if he has been in \r\nactual possession of the property; and, (c) allow the beneficiary to deduct a \r\nproportionate part of the purchase -money if the property has been deteriorated by \r\nthe acts or omissions of the trustee or purchaser. \r\n(2) Nothing in this section shall: \r\n(a) impair the rights of lessees and others who, before the institution of a \r\nsuit to have the property declared subject to the trust or retransferred, \r\nhave contracted in good faith with the trustee or purchaser; or \r\n(b) entitle the beneficiary to have the property declared subject to the trust \r\nor retransferred where he, being competent to contract, has himself, \r\nwithout coercion or undue influence having been brought to bear on \r\nhim, ratified the sale to the trustee with full knowledge of the facts of \r\nthe case and of his rights as against the trustee. \r\n78. When trust -property is into the hands of third persons .− (1) Where a \r\ntrust-property comes into the hands of a third person inconsistently with the trust, the \r\nbeneficiary may require him to admit formally, or may institute a suit or a declaration, \r\nthat the property is comprised in the trust. \r\n(2) Where the trust ee has disposed of trust -property and the money or \r\nother property which he has received therefor can be traced in his hands, or the \r\nhands of his legal representative or legatee, the beneficiary has, in respect thereof, \r\nrights as merely as may be the same a s his rights in respect of the original trust -\r\nproperty. \r\n79. Saving of rights of certain transferees .− Nothing in section 78 entitles the \r\nbeneficiary to any right in respect of property in the hands of: \r\n(a) a transferee in good faith for consideration without having notice of the \r\ntrust, either when the purchase -money was paid, or when the \r\nconveyance was executed, or \r\n(b) a transferee for consideration from such a transferee. \r\nExplanation 1: A judgment -creditor of the trustee attaching and purchasing \r\ntrust-property is not a transferee for consideration within the meaning of this section. \r\nExplanation 2: Nothing in sec tion 78 applies to money, currency notes, \r\nnegotiable instruments in the hands of a bona fide holder to whom they have passed \r\n \r\n \r\nin circulation, or shall be deemed to affect the Contract Act, 1872 or the liability of a \r\nperson to whom a debt or charge is transferred. \r\n80. Acquisition by trustee of trust -property wrongfully converted .− Where a \r\ntrustee wrongfully sells or otherwise transfers trust -property and afterwards himself \r\nbecomes the owner of the property, the property again becomes subject to the trust, \r\nnotwithstanding any want of notice on the part of intervening transferees in good \r\nfaith for consideration. \r\n81. Right in case of blended property .− Where the trustee wrongfully mingles \r\nthe trust-property with his own, the beneficiary shall be entitled to a cha nge on the \r\nwhole fund for the amount due to him. \r\n82. Wrongful employment by partner -trustee of trust -property for \r\npartnership purposes .− If a partner, being a trustee, wrongfully employs trust -\r\nproperty in the business or on the account of the partnership, no other partner shall \r\nbe liable in his personal capacity to the beneficiaries unless he has notice of the \r\nbreach of trust and the partners having such notice are jointly and severally liable for \r\nthe breach of trust. \r\n83. Liability of beneficiary joining in breach of trust .− (1) The liability of a \r\nbeneficiary in committing breach of trust arises where one of several beneficiaries: \r\n(a) joins in committing breach of trust; or \r\n(b) knowingly obtains any advantage therefrom, without the consent of the \r\nother beneficiaries; or \r\n(c) becomes awar e of a breach of trust committed or intended to be \r\ncommitted, and either actually conceals it, or does not within a \r\nreasonable time take proper steps to protect the interests of the other \r\nbeneficiaries; or \r\n(d) has deceived the trustee and thereby induced him t o commit a breach \r\nof trust, \r\nthe other beneficiaries are entitled to have all his beneficial interest \r\nimpounded as against him and all who claim under him (otherwise than as \r\ntransferees for consideration without notice of the breach) until the loss \r\ncaused by the breach has been compensated. \r\n(2) When property has been transferred or bequeathed for the benefit of a \r\nmarried woman, so that she has no power to deprive herself of her beneficial \r\ninterest, nothing in this section shall apply to such property during her marriage. \r\n84. Rights and liabilities of beneficiary's transferee .− Every person to whom a \r\nbeneficiary transfers his interest, has the rights and is subject to the liabilities of the \r\nbeneficiary in respect of such interest at the date of the transfer. \r\nCHAPTER VIII \r\nVACATING THE OFFICE OF TRUSTEE \r\n85. Office how vacated.− The office of a trustee shall be vacated by his death or \r\nby his discharge from his office. \r\n \r\n \r\n86. Discharge of trustee.−The trustee may be discharged from his office only as \r\nfollows: \r\n(a) by the extinction of the trust; or \r\n(b) by the completion of his duties under the trust; or \r\n(c) by such means as may be prescribed by the instrument of trust; or \r\n(d) by appointment under this Act of a new trustee in his place; or \r\n(e) by consent of himself and the beneficiary, or, where there are more \r\nbeneficiaries than one, all the beneficiaries be ing competent to contract; \r\nor \r\n(f) by the executive order of the Director, if any of the trustee: \r\n(i) is convicted by a court in criminal case; or \r\n(ii) fails to fulfill any of the duty or obligation required under this Act; \r\nor \r\n(iii) has been punished under section 18; or \r\n(g) by the Court to which a petition for his discharge is presented under this \r\nAct. \r\n87. Petition to be discharged from trust .− Notwithstanding the provisions of \r\nsection 23, every trustee may apply by petition to a Civil Court of original jurisdiction \r\nto be discharged from his office; and, if the Court finds that there is sufficient reason \r\nfor such discharge, it may discharge him accordingly, and direct his costs to be paid \r\nout of the trust -property, but, where there is no such reason, the Court shall not \r\ndischarge him, unless a proper person can be found to take his place. \r\n88. Appointment of new trustees on death, etc .− (1) Whenever any person \r\nappointed a trustee disclaims, of any trustee, either original or substituted, dies, or is \r\nfor a continuous period of six months absent from Pakistan, or leaves Pakistan for \r\nthe purpose of residing abroad, or is declared an insolv ent, or desires to be \r\ndischarged from the trust, or refuses or becomes, in the opinion of a Civil Court of \r\noriginal jurisdiction, unfit or personally incapable to act in the trust, or accepts an \r\ninconsistent trust, a new trustee may be appointed in his place by: \r\n(a) the person nominated for that purpose by the instrument or trust (if \r\nany); or \r\n(b) if there be no such person, or no such person able and willing to act, \r\nthe author of the trust if he be alive and competent to contract, or the \r\nsurviving or continuing tru stee or trustee for the time being, or legal \r\nrepresentative of the last surviving and continuing trustee, or (with the \r\nconsent of the Court) the retiring trustee, if they all retire \r\nsimultaneously, or (with the like consent) the last retiring trustee. \r\n(2) Every appointment under subsection (1) shall be in writing under the \r\nhand of the person making it. \r\n(3) On an appointment of new trustee the number of trustees may be \r\nincreased. \r\n \r\n \r\n(4) The Official Trustee may, with his consent and by the order of the \r\nCourt, be appointed under this section, in any case in which only one trustee is to be \r\nappointed and such trustee is to be sole trustee. \r\n(5) The provisions of this section relative to a trustee who is a dead include \r\nthe case of a person nominated trustee in a will but dying before the testator, and \r\nthose relative to a continuing trustee shall include refusing or retiring trustee if willing \r\nto act in the execution of the power. \r\n89. Appointment by Court of new trustees .− (1) Whenever any vacancy or \r\ndisqualification occurs and it is found impracticable to appoint a new trustee under \r\nsection 88, the beneficiary may, without instituting a suit, apply by petition to a Civil \r\nCourt of original jurisdiction for the appointment of a trustee or a new trustee, and the \r\nCourt may appoint a trustee or a new trustee accordingly. \r\n(2) In appointing new trustees, the Court shall have regard: \r\n(a) to the wishes of the author of the trust as expressed in or to be inferred \r\nfrom the instrument of trust; \r\n(b) to the wishes of the person, if any, empowered to appoint new trustees; \r\n(c) to the question whether the appointment will promote or impede the \r\nexecution of the trust; and \r\n(d) where there are more beneficiaries than one, to the interests of all such \r\nbeneficiaries. \r\n90. Vesting of trust -property in new trustees .− Whenever any new trustee is \r\nappointed under section 88 or section 89, all the trust -property for the time being \r\nvested in the surviving or continuing trustees or trustee, or in the legal representati ve \r\nof any trustee, shall become vested in such new trustee, either solely or jointly with \r\nthe surviving or continuing trustees or trustee as the case may require and every \r\ntrustee appointed by a Court, either before or after the passing of this Act, shall have \r\nthe same powers, authorities and discretions, and shall in all respects act, as if he \r\nhad been originally nominated a trustee by the author of the trust. \r\n91. Survival of trust .− On the death or discharge of one of several co -trustees, \r\nthe trust survives and the trust -property passes to the others, unless the instrument \r\nof trust expressly declares otherwise. \r\nCHAPTER IX \r\nEXTINCTION OF TRUSTS \r\n92. Trust how extinguished.− A trust is extinguished: \r\n(a) when its purpose is completely fulfilled; or \r\n(b) when the Director considers and has sufficient reasons to believe that \r\nthe activities of the trust are included in clause (b) of section 17 of this \r\nAct and records reasons in the order to extinct the trust; or \r\n(c) when the fulfillment of its purpose becomes impossible by destruction \r\nof the trust-property or otherwise; or \r\n \r\n \r\n22\r\n[(cc) when it fails to comply with the requirements contained in section 15 and \r\n15-A of this Act; or] \r\n(d) when the trust, being revocable, is expressly revoked. \r\nProvided that reasonable defense opportunity has been given to the trust in \r\ncase of clause (c) above and the trust has the right of appeal to the Department. \r\n93. Revocation of trust .− (1) A trust created by will may be revoked at th e \r\npleasure of the testator. \r\n(2) A trust otherwise created can be revoked only: \r\n(a) by the consent of all the beneficiaries competent to contract; or \r\n(b) in exercise of a power of revocation expressly reserved to the \r\nauthor where the trust has been declared by non -testamentary \r\ninstrument or by word of mouth; or \r\n(c) at the pleasure of the author where the trust is for the payment \r\nof the debts of the author and has not been communicated to \r\nthe creditors. \r\nIllustration \r\nA conveys property to B in trust to sell the same and pay out of the proceeds \r\nthe claims of A's creditors. A reserves no power of revocation. If no communication \r\nhas been made to the creditors, A may revoke the trust. But if the creditors are \r\nparties to the arrangement, the trust cannot be revoked without their consent. \r\n94. Revocation not to defeat what trustees have duly done .− No trust shall be \r\nrevoked by the author so as to defeat or prejudice what the trustees may have duly \r\ndone in execution of the trust. \r\nCHAPTER X \r\nCERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS \r\n95. Where it does not appear that transferor intended to dispose of \r\nbeneficial interest .− Where the owner of property transfers or bequeaths and it \r\ncannot be inferred consistently with the attendant circumstances that he intended to \r\ndispose of the beneficial interest therein, the transferee or legatee shall hold such \r\nproperty for the benefit of the owner or his legal representative. \r\n96. Transfer to one for consideration paid by another. − Where property is \r\ntransferred to one person for a consideration paid or provided by another person, \r\nand it appears that such other person did not intend to pay or provide such \r\nconsideration for the benefit of the transferee, the transferee shall hold the property \r\nfor the benefit of the person paying or providing the consideration. \r\nExplanation: Nothing in this section shall affect the provis ions of the Code of \r\nCivil Procedure, 1908 (V of 1908). \r\n \r\n22Inserted by the Punjab Trusts (Amendment) Act 2022 (XLIII of 2022), published in the Punjab Gazette (Extraordinary), dated: \r\n20 December 2022, pp. 2869-2870, s.10. \r\n \r\n \r\n97. Trust incapable of execution or executed without exhausting trust -\r\nproperty.− Where a trust is incapable of being executed, or where the trust is \r\ncompletely executed without exhausting the trust -property, the trustee, in the \r\nabsence of a direction to the contrary, shall hold the trust -property, or so much \r\nthereof as is unexhausted , for the benefit of the author of the trust or his legal \r\nrepresentative. \r\n98. Transfer for illegal purpose .− Where the owner of property transfers it to \r\nanother for an illegal purpose and such purpose is not carried into execution, or the \r\ntransferor is not as guilty as the transferee, or the effect of permitting the transferee \r\nto retain the property might be to defeat the provisions of any law, the transferee \r\nshall hold the property for the benefit of the transferor. \r\n99. Bequest for illegal purpose or of wh ich revocation is prevented by \r\ncoercion.− (1) Where a testator bequeaths certain property upon trust and the \r\npurpose of the trust appears on the face of the will to be unlawful, or during the \r\ntestator's life-time the legatee agrees with him to apply the property for an unlawful \r\npurpose, the lega tee shall hold the property for the benefit of the testator's legal \r\nrepresentative. \r\n(2) Where property is bequeathed and the revocation of the bequest is \r\nprevented by coercion, the legatee shall hold the property for the benefit of the \r\ntestator's legal representative. \r\n100. Transfer pursuant to rescindable contract .− Where property is transferred \r\nin pursuance of a contract which is liable to rescission or induced by fraud or \r\nmistake, the transferee shall, on receiving notice to that effect, hold the property for \r\nthe benefit of the transferor, subject to repayment by the latter of the consideration \r\nactually paid. \r\n101. Debtor becoming creditor's representative .− Where a debtor becomes the \r\nexecutor or other legal representative of his creditor, he shall hold the debt for the \r\nbenefit of the persons interested therein. \r\n102. Advantage gained by fiduciary.− Where a trustee, executor, partner, agent, \r\ndirector of a company, legal advisor, or other person bound in a fiduciary character \r\nto protect the interests of another person, by availing himself of his character, gains \r\nfor himself any pecuniary advantage, or where any person so bound enters into any \r\ndealings under circumstances in which his own interests are, or may be, adverse to \r\nthose of such other person and thereby gains for himself a pecuniary advantage, he \r\nshall hold for the benefit of such other person the advantage so gained. \r\n103. Advantage gained by exercise of undue influence .− Where, by the \r\nexercise of undue influence, any advantage is gained in derogation of the interests of \r\nanother, the person gaining such advantage without consideration, or with notice that \r\nsuch influence has been exercised, shall hold the advantage for the benefit of the \r\nperson whose interests have been so prejudiced. \r\n104. Advantage gained by qualified owner .− Where a tenant for life, co -owner, \r\nmortgagee or other qualified owner of any property, by availing himself of his position \r\nas such gains an advantage in derogation of the rights of the other persons \r\n \r\n \r\ninterested in the property, or where any such owner, as representing all persons \r\ninterested in such property, gains any advantage, he shall hold, for the benefit of all \r\npersons so interested, the advantage so gained, but subject to repayment by such \r\npersons of their due share of the expenses properly incurred, and to an indemnity by \r\nthe same persons against liabilities properly contracted, in gaining such advantage. \r\n105. Property acquired with notice of existing contract .− Where a person \r\nacquires property with notice that another person has entered into an existing \r\ncontract affecting that property, of which specific performance could be enforced, the \r\nformer shall hold the property for the benefit of the latter to the extent necessary to \r\ngive effect to the contract. \r\n106. Purchase by person contracting to buy property to be held on trust .− \r\nWhere a person contracts to buy property to be held on trust for certain beneficia ries \r\nand buys the property accordingly, he shall hold the property for their benefit to the \r\nextent necessary to give effect to the contract. \r\n107. Advantage secretly gained by one of several compounding creditors .− \r\nWhere creditors compound the debts due to them, and one of such creditors, by a \r\nsecret arrangement with the debtor, gains an undue advantage over his co -creditors, \r\nhe shall hold for the benefit of such creditors the advantage so gained. \r\n108. Constructive trusts in cases not expressly provided for .− In any case not \r\ncoming within the scope of any of the preceding sections, where there is no trust, but \r\nthe person having possession of property has not the whole beneficial interest \r\ntherein, he shall hold the property for the benefit of the persons havin g such interest, \r\nor the residue thereof, as the case may be, to the extent necessary to satisfy their \r\njust demands. \r\n109. Obligator's duties, liabilities and disabilities .− The person holding property \r\nin accordance with any of the preceding sections of this Chapter shall, so far as may \r\nbe, perform the same duties, and is subject so far as may be, to the same liabilities \r\nand disabilities, as if he were a trustee of the property for the person for whose \r\nbenefit he holds it; \r\nprovided that: \r\n(a) where he rightfully c ultivates the property or employs it in trade or \r\nbusiness, he shall be entitled to reasonable remuneration for his \r\ntrouble, skill and loss of time in such cultivation or employment; and \r\n(b) where he holds the property by virtue of a contract with a person for \r\nwhose benefit he holds it, or with any one through whom such person \r\nclaims, he may, without the permission of the Court, buy or become \r\nlessee or mortgagee of the property or any part thereof. \r\n110. Saving of rights of bona fide purchasers .− Nothing containe d in this \r\nChapter shall impair the rights of transferees in good faith for consideration, or create \r\nan obligation in evasion of any law for the time being in force. \r\nCHAPTER XI \r\nMiscellaneous \r\n \r\n \r\n111. Power to make rules.− The Government may make rules for carry ing out the \r\npurposes of this Act within sixty days from the date of commencement of this Act. \r\n112. Repeal and saving.− (1) The Trusts Act, 1882 (II of 1882) is hereby repealed. \r\n(2) Notwithstanding the repeal of the Trusts Act, 1882 (II of 188 2), \r\nanything done, actions taken, rules made or notifications issued under the repealed \r\nAct, so far as they are not inconsistent with the provisions of this Act, shall be \r\ndeemed to have been made, done or taken under this Act and shall have effect \r\naccordingly. \r\n(3) Any d ocument referring to the repealed Act shall be construed as \r\nreferring to corresponding provisions of this Act. \r\n(4) All the trusts registered in the Punjab under the repealed Act shall be \r\nfreshly registered under this Act within a period of six months of th e commencement \r\nof this Act.", "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive", "passages": [ { "passage_id": 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