Section 37 — Power to sell in lots, by auction or private contract
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 37 regulates power to sell in lots, by auction or private contract within chapter iv — rights and powers of trustees.
Finin2min summary
Section 37 — Power to sell in lots, by auction or private contract should be applied as an evidence-backed rule. Start with the official text and then test the file against the provision’s actual conditions.
Operative rule
Section 37 regulates power to sell in lots, by auction or private contract within chapter iv — rights and powers of trustees.
Condition / limit
Read Section 37 — Power to sell in lots, by auction or private contract as a rule governing exercise of trustee power. Determine whether trustee fall within it and whether the file establishes the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact; a chapter label cannot substitute for those elements.
Implementation / proof
For Section 37 — Power to sell in lots, by auction or private contract, preserve a source/version note and the supporting trail—deed, resolutions, valuation/terms, approvals and execution records. This makes the conclusion auditable if the decision is challenged later.
Bare law / official source
Before applying Section 37 — Power to sell in lots, by auction or private contract, verify the controlling Act or Gazette instrument linked below. This page explains operation and evidence; it does not silently recreate the official subsection or proviso text.
Provision-specific decode
| Subject | exercise of trustee power |
|---|---|
| Who is involved | trustee |
| Legal test | the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact |
| Evidence | deed, resolutions, valuation/terms, approvals and execution records |
Working interpretation: Read Section 37 — Power to sell in lots, by auction or private contract as a rule governing exercise of trustee power. Determine whether trustee fall within it and whether the file establishes the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact; a chapter label cannot substitute for those elements.
Boundary: For Section 37 — Power to sell in lots, by auction or private contract, preserve a source/version note and the supporting trail—deed, resolutions, valuation/terms, approvals and execution records. This makes the conclusion auditable if the decision is challenged later.
Working flow
- Reconstruct chronology and identify the controlling statutory version.
- Separate jurisdiction/capacity from the merits of exercise of trustee power.
- Apply the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact; mark every proviso or exception that can change the result.
- Reconcile the conclusion to deed, resolutions, valuation/terms, approvals and execution records.
- Preserve the implementation record so a later reviewer can reproduce the decision.
Practical example
A practitioner is asked for a yes/no answer on section 37 — power to sell in lots, by auction or private contract. Instead of answering from the heading, the practitioner checks the event-date text and the evidentiary record. Read Section 37 — Power to sell in lots, by auction or private contract as a rule governing exercise of trustee power. Determine whether trustee fall within it and whether the file establishes the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact; a chapter label cannot substitute for those elements. The advice identifies both the conclusion and any separate approval, filing, court or remedy step.
Exam and advisory case study
A party relies on Section 37 — Power to sell in lots, by auction or private contract but cites an old consolidation. Analyse the event-date version first, then the substantive test, and finally whether any later rule/notification/judgment changes implementation.
Evidence and implementation checklist
- Official source/version for Section 37 — Power to sell in lots, by auction or private contract on the relevant date.
- Documents establishing the identity, capacity or jurisdiction of trustee.
- Records that test the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact.
- Primary evidence pack: deed, resolutions, valuation/terms, approvals and execution records.
- The connected filing, approval, consent, order, notice, appeal or remedy record, if the provision requires one.
Scope boundary — private trust law
Q&A
What is the core legal point in Section 37?
Section 37 regulates power to sell in lots, by auction or private contract within chapter iv — rights and powers of trustees.
What is the main implementation risk when applying Section 37?
Read Section 37 — Power to sell in lots, by auction or private contract as a rule governing exercise of trustee power. Determine whether trustee fall within it and whether the file establishes the statutory right or power, its purpose, instrument limitations, good faith and beneficiary impact; a chapter label cannot substitute for those elements.
What should be retained in the file for Section 37?
Retain the event-date official source and the records that demonstrate the statutory test: deed, resolutions, valuation/terms, approvals and execution records.
Disclaimer
Professional conclusions on Section 37 — Power to sell in lots, by auction or private contract require the applicable source version, complete facts and any binding court/regulator directions.