Butail was born on 2 April 1933 in Palampur, Kangra district. He was married to Sudesh Butail and they have one son and three daughters. His grandson, Gokul Butail is a Congress strategist and entrepreneur.
Political life
He represented the constituency of Palampur three times in the state assembly from 1966 to 1980. He was also the first President of the Pradesh Congress Committee, when the state was formed. Butail was regarded as one of the masterminds in the state congress who gave new dimensions to the development of district Kangra. He was regarded as one of the arch rivals of his own Chief MinisterYashwant Singh Parmar whom he alleged of discrimination for the merged areas of state. He was offered Cabinet rank by Dr. Parmar but he refused to accept it. Butail was also said to have cordial relations with the central leaders of the INC like Indira Gandhi. Leaders like Mahatma Gandhi, Pandit Nehru, Sardar Patel visited his house on many times owing to the closeness to his Uncle Kanhiya Lal Butail. His younger brotherBrij Behari Lal Butail has been a 5 time MLA from Palampur and is the current Speaker of the State Assembly.
Social work
Butail was well known for his philanthropic efforts. He founded a premier educational institution, Lala Kanhiya Lal Butail DAV college for girls, a pioneer institution which primarily serves the poor and under-privileged girls of the society. Bansi Lal Butail Girls School, another charitable educational institution established for the benefit of young girls of Palampur area was started by Butail.No fees is charged to the students-moreover most of their expenses like transportation and books is also taken care of by the school itself. Butail managed and ran two bigcharitable trusts, Lala Gorimal Butail Trust and Bundla Tea Estate trust, which donated prime lands of Palampur, Pragpur and Shimla to hospitals, schools and temples. Butail was instrumental in donating about 20000 square metres of prime land in Palampur to set up DAV Public School at Palampur, which today is one of the leading schools in the district. He also played a vital role in setting up the Tea Cooperative factories at Palampur and adjoining areas.