LexThe Rajasthan Public Trust Act 1959
Rajasthan · state statute
Open in Lexace · Ask the AI about this actTHE RAJASTHAN PUBLIC TRUST ACT, 1959 Sect. Arrangement of Sections Page CHAPTER - I PRELIMINARY 1. Short title, extent and commencement 2. Definitions CHAPTER - II Validity of certain public trusts 3. Public trust not to be void on ground of uncertainty 4. Public trust not void on ground that it is void for non -charitable or non - religious purposes. 5. Public trust not void on ground of absence of obligation. 6. Public trust not void on failure of specific object or society etc. ceasing to exist. CHAPTER - III Appointment of Officers and Servants 7. Devasthan Commissioner 8. Assistant Devasthan Commissioner 9. Subordinate officers and servants 10. Commissioner and other officers to be servants of Government CHAPTER - IV Establishment and functions of Board and Committees 11. Establishment and composition of Advisory Board. 12. Functions of the Board. 13. Regional Advisory Committees. 14. Functions of Committees. 15. Conduct of business etc. of Board and Committees. CHAPTER - V Registration of public trusts. 16. Officer-in-charge of registration. 17. Registration of public trusts. 18. Inquiry for registration. 19. Finding of the Assistant Commissioner. 20. Appeal. 21. Entries in the register. 22. Civil suit against entries made under section 21. 23. Changes. 24. Further inquiry by Assistant Commissioner. 25. Intimation about trust property to be sent to all Assistant Commissioners. 26. Court to forward copy of decision to Assistant Commissioner concerned. 27. Public trust by will. 28. Notice to Assistant Commissioner in certain cases. 29. Bar against suits by unregistered trust. CHAPTER - VI Management of Trust Property 30. Investment of public trust moneys 31. Previous sanction to be obtained for certain transfers. CHAPTER - VII Accounts, Audit and Budget 32. Maintenance of accounts 33. Balancing and auditing of accounts 34. Auditor's duty to prepare balance sheet and to report irregularities. 35. Budget 36. Inspection and copies. CHAPTER - VIII Powers of officers in relation to Public Trusts. 37. Commissioner to be Treasurer of charitable endowments. 38. Application for directions. 39. Application to Commissioner against refusal to apply under section 38 40. Powers of the court on application under section 38 or section 39. 41. Application for appointment of new working trustee. 42. Application to Commissioner against orders under section 41. 43. Powers of the court upon application under section 41 or section 42. 44. Non-application of Sections 92 and 93 of Central Act V of 1908 45. Inquiries by Assistant Commissioner. 46. Commissioner etc. to be public servants. CHAPTER - IX Control over Public Trusts. 47. Returns & statements. 48. Powers of entry and inspection 49. Power to ask for explanation 50. Application to the court. 51. Vacancy in the board of trustees. CHAPTER - X Special provisions as respects to certain Public Trusts. 52. Application of chapter 53. Management of public trusts to which this chapter applies. 54. Notice to hereditary trustee before. 55. Disqualifications for membership. 56. Term of office of committee. 57. Removal of members. 58. Appointment of new members. 59. Meetings of and procedure for committee of management. 60. Appointment of sub-committees. 61. Duties of committee of management. 62. Power of Commissioner to require duties of committee to be performed and to direct expenses in respect thereof to be paid from fund of committee. 63. Power to supersede a committee. 64. Power to make regulations 65. Rights of hereditary trustees. CHAPTER - XI Dharmada 66. Dharmada. CHAPTER - XII Procedure and Penalties 67. Officers holding inquiries to have the powers of civil court. 68. Enquiries to be judicial proceedings. 69. Civil Procedure Code to apply to proceedings before courts. 70. Penalty CHAPTER - XIII Miscellaneous 71. Recovery of sums. 72. Proceedings involving question affecting public purpose. 73. Bar of jurisdiction. 74. Indemnity from suits and proceedings. 75. Trial of offence under the Act. 76. Rules. 77. Exemption. 78. Rajasthan Act 13 of 1959 not affected. 79. Power of remove difficulties. 80. Act not to apply to Muslim Wakfs. 81. Repeal 82. Amendment of Rajasthan Act 6 of 1952. CHAPTER - I PRELIMINARY Sec. 1 - Short title, extent and commencement: 1. This Act may be called the Rajasthan Public Trusts Act, 1959 2. It extends to the whole of the State of Rajasthan. 3. Chapter I, II, III and IV of this Act shall come into force at once. 4. Chapter V, VI, VII, VIII, IX and X of this Act shall come into force on such date, and shall apply there from in relation to such class or classes of public trusts, as the State Government may, by notification in the official Gazette, specify, and for the purpose of such application the State Government may classily such public trusts in the State on the basis of the income thereof or on the basis of the value of their total assets or on the basis of other financial factors. 5. Before the publication of any notification under sub -section (4), a draft thereof shall be published in the official Gazette for the information of all persons likely to be affected thereby and a notice shall be published therewith specifying the date on or after which the draft shall be taken into consideration and before which any objections or suggestions shall be received. 6. Chapter XI of this Act shall come into force on such date as the State Government may, by special notification in the of ficial Gazette, specify ; and the State Government may, having regard to the population of different Cities and Towns, specify different dates for the application of Chapter XI of this Act Thereto. 7. Chapter XII and XIII of this Act shall commence to apply in relation to the provisions of each of the other Chapter of this Act on the date on which such other Chapter comes into force. Sec. 2 - Definitions: In this Act, unless the subject or context requires otherwise - 1. "Assistant Commissioner" means an Assis tant Devasthan Commissioner appointed under Sec. 8 and shall include such other officer of Government as may be notified by the State Government to be the Assistant Commissioner of a specified area for the purpose of this Act. 2. "Board" means the State advisory Board of public trusts established under Sec. 11; 3. "Charitable endowment" means all property given or endowed for the benefit of. or used as of right by, the community or any section thereof for the support or maintenance of objects of utility to the sa id community or section ; such as rest - houses, pathshalas, schools and colleges, houses for feeding the poor and institutions for the advancement of education, medical relief and public health or other objects of a like nature and includes the institution concerned; 4. "Commissioner" means the Devasthan Commissioner appointed under Sec. 7; 5. "Committee" means a Regional Advisory Committee for public trusts established under Section. 13; 6. "Court" means the District Court; 7. "Hereditary trustee" means the trustee of a public trust succession to whose office devolves by hereditary right or is regulated by usage or is specified provided for by the founder; 8. "Math" means an institutions for the promotion of a religions presided over by a person whose duty is to engage hims elf in imparting religious instructions or rendering spiritual service to a body of disciples or who exercise or claims to exercise headship over such a body and includes places or religious worship or instruction which are appurtenant to the institution; 9. "Person having interest" or any expression signifying a person having interest in a public trust includes - (a) in the case of a temple, a person who is entitled to attend or is in the habit of attending the performance of worship or service in the temple or w ho is entitled to partaking or is in the habit of partaking in the distribution of gifts thereof. (b) in the case of math, a disciple of the math or a person of the religious persuasion to which the math belongs, (c) in the case of society registered or deemed to be registered under the Rajasthan Societies Registration Act, 1958(Rajasthan Act 28 of 1958) or under any other analogous law in force in any part of the State, any member of such society, and (d) in the case of any, other public trust, any beneficiary, 10. " Public securities" means- (a) Securities of the Central Government or any State Government,\ (b) stocks, debentures or shares in railway or other companies in public sector, the interest or dividends on which has been guaranteed by the Central or any State Government, (c) a securities expressly authorized by an order which the State Government makes in this behalf. 11. "Public trust" means an express or constructive trust for either a public, religious or chartable purpose or both and includes a temple, a math, dharmada or any other religious or charitable endowment or institution and a society formed either for a religious or charitable purpose or for both; 12. "register" means a register maintained under sub-section (2) of Section 16; 13. "Religious endowment" or "endowment" means all property belonging to or giver or endowed for the support of a religious institutions or given or endowed for the performance of any service or charity connected therewith and includes the premises of the religious institution as well as the idols, if any installed therein and any public charity associated with a festival or observance or a religious character, whether connected with a religious institutions or not, but does not include gifts or property made as personal gifts to the trustee or heredit ary trustee or working trustee of such institutions or to any service -holder or other employee thereof; 14. "Religious institutions" or "institution" means an institutions for the promotion of any religion or persuasion and includes a temple, math and religious establishment or any place of religious worship or religious instruction whether or not appurtenant to such institution; 15. "Specific endowment" means any property or money endowed for the performance of any specific service or charity in a religious institution; 16. "Temple" means a place, by whatever designation known, used as a place of public religious worship and dedicated to or for the benefit of or used as of right by a community or any section thereof as a place of public religious worship; 17. "Trustee" mea ns a person in whom either alone or in association with other persons the trust property is vested and includes a manager; 18. "Working trustee" means any person who, for the time being, either alone or in association with some other person or persons administ ers the trust property of any public trust and includes the manager of a public trust as well as- (a) in the case of a math, the head of such math, and (b) in the case of a public trust having its principal office or principal place of business outside the State of Rajasthan the person in charge of the management of the property and administration of the public trust in the State. 19. Words and expressions used but not defined in this Act and defined in the Indian Trusts Act, 1882 (Central Act No. 2 of 1882), have the meanings respectively assigned to them in the Act. CHAPTER - II Validity of certain public trusts Sec. 3 - Public trust not to be void on ground of uncertainty: Notwithstanding any law, custom or usage, a public trust shall not be void on the ground t hat the persons or objects for the benefit of whom or which it is created are unascertained or unascertained. Explanation - A public trust created for such objects as Dharama or Punya -karya shall not be deemed to be void only on the ground that the object s for which it is created, are unascertained or unascertained. Sec. 4 - Public trust not void on ground that it is void for non charitable or non - religious purposes: A public trust created for purpose, some of which are charitable or religious and some are not, shall not be deemed to be void with respect to the charitable or religious purpose on the ground that it is void with respect to the non-charitable or non-religious purpose. Sec. 5 - Public trust not void on the ground of absence of obligation: Any disposition of property for religious or charitable purpose shall not be deemed to be void as a public trust only on the ground that no obligation is annexed with such disposition requiring the person in whose favour it is made to hold it for the benef it of a religious or charitable object. Sec. 6 - Public trust not void on failure of specific object or society etc. ceasing to exist: If any public trust is created for a specific object of a charitable or religious nature or of the benefit or society or institution constituted for a charitable or religious purpose such trust shall not be deemed to be void only on the ground - (a) that the performance of the specific object for which the trust was created has become impossible or impracticable or (b) that the society or institutions does not exists or has ceased to exist, notwithstanding the fact that there was not intent for the appropriation of the trust property for a general charitable or religious purpose. CHAPTER - III Appointment of Officers and Servants Sec. 7 - Devasthan Commissioner: 1. The State Government shall, by notification in the official Gazette, appoint an officer to be called the Devasthan Commissioner, who, in addition to other duties and functions imposed on him by or under the provisions of this Act or any other law for the time being in force, shall subject to the general and special orders of the State Government superintend the administration and carry out the provision of this Act through the territories to which this Act extends. 2. The Co mmissioner shall be corporation sole by the name of the Devasthan Commissioner of the State of Rajasthan, shall as such have perpetual succession and a common seal and may sue and be sued in his corporate name. Sec. 8 - Assistant Devasthan Commissioner: The State Government shall likewise (i) appoint such number of Assistant Devasthan Commissioner as it may deem necessary from time to time, and (ii) define the local limits of the areas in which each Assistant Commissioner so appointed shall have jurisdiction, and exercise the powers conferred on him by or under this Act or any other law for the time being in force. Sec. 9 - Subordinate Officers and servants: To aid the Commissioner and Assistant Commissioner in carrying out the provisions of this Act, the State Government may appoint inspectors and other sub -ordinate officers and servants with such designations, and assign to them such powers, duties functions under this Act or the rules, made thereunder or under other enactment for the time being in force as may be deemed necessary. Provided that the State Government may be general or special order and subject to such conditions as it deems fit to impose, delegate to the Commissioner and the Assistant Commissioner the power to appoint such sub -ordinate office rs and servants as may be specified in the order. Sec. 10 - Commissioner and other officers to be servants of Government: The Commissioner, the Assistant Commissioner, the Inspectors and other subordinate Officer and servants appointed under this Act sha ll be the servants of the State Government and shall draw their pay and allowances from the Consolidated fund of the State. The conditions of service of all such officers and servants shall be such as may be determined by the State Government. CHAPTER - IV Establishment and functions of Board and Committees. Sec. 11 - Establishment and Composition of Advisory Board: 1. The State Government shall, by notification in the official Gazette, establish for the territories to which this Act extends for the time be ing an advisory Board to be called the Rajasthan Public Trust Board consisting of such number of members representing each interest as may be prescribed. 2. All the members of the Board shall be appointed by the State Government by notification in the officia l Gazette and shall hold office, save as otherwise provided for period of five years from the date of the publication of such notification. Sec. 12 - Function of the Board: 1. The Board Shall - (a) forward its views to the State Government regarding the perfor mance by the Commissioner of his functions under this Act, (b) draw the attention of the State Government towards the difficulties experienced in the working of this Act and rules made thereunder and suggest amendments there to. (c) Consider such matters as may be referred to the Board by the state Government and (d) perform such other functions as may be prescribed. 2. If an Assistant Commissioner disagrees with the advice tendered by a Commit tee under section 14 in relation to the exercise of any of his powers under C hapter VI and VII, he shall refer the matter to the Board. 3. In a case referred to the Board under sub-section (2) the Assistant Commissioner shall act according to the decision of the board. 4. The State Government may, after considering any views received fro m the Board under clause (a) or clause (b) of sub -section (1), take such action as it may deem necessary and, in particular, may issue to the Commissioner such directions, consistent with this Act and the rules thereunder, in respect of the exercise by the Commissioner of any of his powers under this Act, as it may deem proper. Sec. 13 - Regional Advisory Committee: 1. The State Government shall, by notification in the official Gazette, establish a Regional Advisory Committee for the area within the jurisdic tion of each Assistant Commissioner, consisting of such number of members representing each interest as may be prescribed. 2. All the members of a Committee shall be appointed by the State Government by notification in the official Gazette and shall hold offi ce, save as otherwise provided, for a period of five years from the date of the publication of such notification. 3. The State Government shall appoint one from amongst the members of a Committee to be its Chairman. 4. If any member of a Committee is unable, by reason of death, resignation removal or otherwise, to complete his full term of office, the vacancy so caused shall be filled by the appointment of another person and the person so appointed shall fill such vacancy for the unexpired portion of the term for which the member in whose place such person is appointed would otherwise have continued in office. 5. The members of a Committee including the Chairman may be paid travelling and other allowances for attending meetings of the Committee and subject to the prescribed conditions and restrictions, for undertaking any journey in connection with any of the affairs of the Committee, as such rates as may be fixed by the State Government. Sec. 14 - Functions of Committees: 1. Every Committee shall, in relation to the area for which it has been established, tender advice to the Assistance Commissioner of that area in respect of matters arising under Chapter VI and VII and, save as otherwise provided in sub -section (2) and (3) of section 12, no Assistant Commissioner shal l exercise powers in such matters without obtaining, and otherwise than in accordance with advice. 2. Every Committee shall perform such other functions as may be prescribed. Sec. 15 - Conduct of business etc. of Board and Committees: 1. The manner in which th e business of the Board or a Committee shall be conducted, the staff required thereof and its conditions of service and the removal of members thereof shall be determined by rules made by state Government. 2. No member of the Board or Committee shall particip ate in the discussion of or vote on a matter coming before the Board or such Committee, if such matter relates to a public trust representing a particular religion and such member is not a persons professing that religion, CHAPTER - V Registration of public trusts. Sec. 16 - Officer-in-charge- of registration: 1. The Assistant Commissioner shall be incharge of the registration of all public trusts, the principal officers, or the principal places of business of which, as declared in the application under sub -section (1) of section 17, situate within the local limits of the area of his jurisdiction. 2. The Assistant Commissioner shall maintain a register of public trust and such other books and registers in such form as may be prescribed. Sec. 17 - Registration of public trust: 1. Within three months from the date of the application of this section to a public trust or from the date on which a public trust is created whichever is later, the working trustee thereof shall apply to a Assistant Commissioner having juri sdiction for the registration of such public trust. 2. The Assistant Commissioner may, for reasons to be recorded in writing, extend the period prescribed by Sub -Sec. (1) for the making of an application for registration by not more that two years. 3. Each such application shall be accompanied by such fee if any, not exceeding five rupees, and to be utilised for such purpose, as may be prescribed. 4. The application shall be in such form as may be prescribed and shall contain the following particulars, namely: - (i) the origin (so far as knows), nature and object of the public trust and the designation by which the public trust is or shall be known; (ii) the place where the principal office or the principal place of business of the public trust is situate; (iii) the name and addresses of the working trustee and the manager; (iv) the mode of succession to the office of the trustee; (v) the list of the movable and immovable trust property and such description and particulars as may be sufficient for the identification thereof; (vi) the approximate value of the movable and immovable property; (vii) the gross average annual income derived form movable and immovable property and from other source, if any, based on the actual gross annual income during the three years immediately proceeding the date on which the application is made or of the period which has elapsed since the creation of the trust, whichever period is shorter, and, in the case of a newly created public trust the estimated gross annual income from all such sources; (viii) the amount of the average an nual expenditure in connection with such public trust estimated on the expenditure incurred within the case of a newly created public trust, the estimated annual expenditure in connection with such public trust; (ix) the address to which and communication to th e working trustee or manager in connection with the public trust may be sent; (x) such other particulars as may be prescribed; Provided that the rules made may provide that in the case of any or all public trusts it shall not be necessary to give the particul ars of the trust property of such value and kind as may be specified therein. 5. Every application made under sub -section (1) shall be signed and verified in accordance with the manner laid down in the code of Civil Procedure, 1908 (Central Act v if 1908) fo r signing and verifying plaints. It shall be accompanied by a copy of the instrument of trust (if such instrument has been executed and is in existence) and, where the trust property includes immovable property entered in a record of rights, a copy of the relevant entries relating to such property in such record of rights shall also be enclosed. 6. No Assistant Commissioner shall proceed with any application for the registration of a public trust in respect of which an application for registration has been fi led previously before any other Assistant Commissioner, and the Assistant Commissioner before whom the application was filed first shall decide which Assistant Commissioner shall have jurisdiction to register the public trust. 7. An appeal against the order o f the Assistant Commissioner before whom the application was filed first, given under sub -section (6) may be filed within sixty days before the Commissioner and, subject to the decision on such appeal, the orders of the Assistant Commissioner under sub-section (6) shall be final. Sec. 18 - Inquiry for Registration: 1. On receipt of an application under Sec. 17 or upon an application made by any person having interest in a public trust or on his own motion, the Assistant Commissioner shall make an inquiry in the prescribed manner for the purpose of ascertaining: (i) whether a trust exists and whether such trust is a public trust: (ii) whether any property is the property of such trust; (iii) whether the whole or any substantial portion of the subject matter of the trust is situate within his jurisdiction; (iv) the names and addresses of the working trustee and the manager of such trust; (v) the mode of succession to the office of the trustee of such trust; (vi) the origin, nature and objects of such trust; (vii) the amount of gross average annu al income and expenditure of such trust : and (viii) the correctness or otherwise of any other particulars furnished under sub - section (4) of Section 17. 2. The Assistant Commissioner shall give in the prescribed manner public notice of the inquiry proposed to be ma de under sub -section (1) and invite all person having interest in the public trust inquiry to prefer within sixty days objection, if any, in respect of such trust. Sec. 19 - Finding of Assistant Commissioner: On completion of the inquiry provided for un der section 18, the Assistant Commissioner shall record his findings with the reasons therefore as to the matters mentioned in the said section. Sec. 20 - Appeal: Any working trustee or person having interest in a public trust or in any property found to be trust property aggrieved by a finding of the Assistant Commissioner under Sec. 19 may, within two months from the date of its publication on the notice board of the Assistant Commissioner, file an appeal before the Commissioner to have such finding set aside or modified. Sec. 21 - Entries in the Register: 1. The Assistant Commissioner shall cause entries to be made in the register in accordance with the finding recorded by him under section 19 or, if an appeal has been filed under Sec. 20 in accordance with the decision of the Commissioner on such appeal, and shall cause to be published on the notice board of his office and at a conspicuous place in the city, town or village where the principal office or the principal place of business of the public trus t is situate, the entries made in the register. 2. The entries so made shall, subject to the other provisions of this Act and subject to any change recorded under any provisions of the Act or a rule made there under, be final and conclusive. Sec. 22 - Civil suit against entries made under section 21: 1. Any working trustee or person having interest in a public trust or in any property found to be trust property aggrieved by any entry made under section 21 may, within six months from the date of the publication thereof on the notice board of the office of the Assistant Commissioner under sub -section (1) of section 21, institute a suit in a civil court to have such entry cancelled or modified. 2. In every such suit the civil court shall give notice to the State Government through the assistant Commissioner and the State Government, if it so desires shall be made a party to the suit. 3. On the final decision of the suit, the Assistant Commissioner shall, if necessary, correct the entries made in the register in accordance with such decision. Sec. 23 - Changes: 1. Where any change occurs in any of the entries recorded in the register, the working trustee shall, within ninety days from the date of the occurrence of such change, or, where any change is desired in suc h entries in the interest of the administration of such public trust, the working trustee may, report in the prescribed form and manner such change or proposed change to the Assistant Commissioner. 2. For the purpose of verifying the correctness of the ent ries in the register or ascertaining whether any change has occurred in any of the particulars recorded in the register, the Assistant Commissioner may hold an inquiry. 3. If, after holding such inquiry as he may consider necessary under sub -section (2) either on receipt of a report under sub -section (1) or otherwise, the Assistant Commissioner is satisfied that a change has occurred or is necessary in any of the entries recorded in the register in regard to the particular public trust, he shall record a finding with the reasons therefore and the provisions of section 29 shall apply to such finding as they apply to a finding under section 19. 4. The Assistant Commissioner shall cause the entries in the register to be amended in accordance with the finding reco rded under sub -section (3) or, if an appeal has been filed therefrom, in accordance with decision of the Commissioner on such appeal and the provisions of section 21 and 22 shall apply to such amended entries as they apply to the original entries. Sec. 24 - Further inquiry by Assistant Commissioner: If, a any time after the entries or amended entries are made in the register under Section 21 or section 23, it appears to the Assistant Commissioner that any particulars relating to any public trust, which w as not the subject matter of the inquiry under section 18 or sub-section (2) of section 23, as the case may be, has remained to be inquired into, the Assistant Commissioner may make further inquiry in the prescribed manner, record his findings and make or amend entries in the register in accordance with the decision arrived at, and the provisions of sections 19, 20, 21, 22 and 23 shall, so far as may be, apply to the inquiry, the recording of findings and the making or amending of the entries in the register under this section. Sec. 25 - Intimation about trust property to be sent to all Assistant Commissioner: 1. Where any part of the property of a public trust is situate within the local limits of the jurisdiction of more than one Assistant Commissioner, th e Assistant Commissioner incharge of the registration of that trust shall forward a copy of the entries or amended entries recorded in the register in respect of that public trust to each Assistant Commissioner within whose jurisdiction any part of the trust property is situate. 2. On receipt of a copy of the entries or amended entries under sub -section (1), the Assistant Commissioner shall causes the particulars thereof to be entered in a book prescribed for the purpose. Sec. 26 - Court to forward copy of decision to Assistant Commissioner concerned: Any court of competent jurisdiction deciding any question relating to any public trust which by or under the provisions of this Act is not expressly or impliedly barred from deciding shall cause a copy of such d ecision to be sent to the Assistant Commissioner having jurisdiction and the Assistant Commissioner shall cause an entry in the register to be made or amended in regard to such public trust in accordance with such decision. The amendments so made shall not be altered except in cases where such decision has been varied in appeal or revision by a court of competent jurisdiction. Subject to such alterations the amendments made shall be final and conclusive. Sec. 27 - Public trust by will: In the case of a p ublic trust which is created by a will, the executor of such will shall, within one month from the date on which the probate of the will is granted or within sic months from the date of the testator's death, whichever is earlier, made an application for th e registration of the trust in the manner provided in section 17 and the provisions of this chapter shall apply to such registration. Sec. 28 - Notice to Assistant Commissioner in certain cases: If in any proceeding before a Civil court or a Revenue Off icer, any document purporting to create a pu blic trust is produced or the decision of any question before such court or officer is likely to effect any entry in the register such court or officer shall give notice of such proceeding to the Assistant Commis sioner having jurisdiction and shall, if the Assistant Commissioner applies in that behalf make him a party thereto. Sec. 29 - Bar against suits by unregistered trust: 1. No suit to enforce a right on behalf of a public trust which is required to be registered under this Act but has not been so registered shall be heard or decided in any court. 2. The provisions of sub -section (1) shall apply to a claim of set off or other proceedings to enforce a right on behalf of such public trust. CHAPTER - VI Management of Trust Property Sec. 30 - Investment of Public Trust Money: 1. Where any property belonging to public trust consists of money and such money cannot be applied immediately or at any early date to the purposes of the said public trust, the working trustee thereof shall be bound, notwithstanding a direction to the contrary contained in the instrument of trust, if any, to deposit the money in a Scheduled bank as defined in the Reserve Bank of India Act, 1934 (Central Act 2 1934) or in a Postal saving Band or in a Co -operative Bank registered under the Rajasthan Co -operative Societies Act, 1953 (Rajasthan Act 4 of 1953) or to invest in public securities: Provided that such money may be invested in the first mortgage of immovable property situated in India if the property is not lease -hold for a term of three years and the value of the property exceeds by one half the mortgage money: Provided further that the Commissioner may, by general or special order, permit the working trustee of any public trus t or class of such trusts to invest such money in any other manner. 2. Nothing in sub-section (1) shall affect any investment or deposit already made before the commencement of this Act in accordance with a direction contained in the instrument of trust. Provided that any interest or dividend received or accruing from such investment or deposit on or after the commencement of this Act or any sum realized on the maturity of the said, investment or deposit shall be applied or invested in the manner prescribed in sub-section (1). Sec. 31 - Previous sanction to be obtained for certain transfers: 1. Subject to the directions in the instrument of trust or any directions given under this Act or any other law by any court: (a) no sale, exchange or gift of any immovable property or of movable property exceeding five thousand rupees in value, and (b) no lease, for a period exceeding five years in the case of agricultural land or for a period exceeding three years in the case of non -agricultural land or a building. belonging to a public trust shall be valid without the previous sanction of the Assistant Commissioner. 2. An application for the sanction of the Assistant Commissioner, under sub - section (1) shall be made in the prescribed manner and form. 3. Where, on the application duly made for sanction in respect of any transaction specified in sub -section(1), the Assistant Commissioner does not, within two months of the receipt thereof, pass final orders, it shall be presumed that he has accorded sanction in res pect of that transaction, provided that the application described the transaction, with sufficient accuracy. 4. The Assistant Commissioner shall not refuse to accord sanction in respect of any transaction specified in sub -section (1) unless such transacti on is, in this opinion, likely to be prejudicial to the interests of the public trust, and no order refusing to accord sanction shall be passed unless the working trustee of such public trust has had a reasonable opportunity of being heard. CHAPTER - VII Accounts, Audit and Budget Sec. 32 - Maintenance of Accounts: The working trustee or manager of a public trust which has been registered under this Act shall keep regular accounts of all movable and immovable properties of the trust. The form of such a ccounts and the particulars to be entered there in shall be such as may be prescribed or in so far as they are not prescribed shall be such as may be approved by the Assistant Commissioner. Sec. 33 - Balancing and auditing of accounts: 1. The accounts ke pt under Section 32 shall be balanced each year on the 31st day of March or on such other day as may be fixed by the Commissioner. 2. The accounts shall be audited annually in such manner as may be prescribed, and by a person who is a Chartered Accountant within the meaning of the Chartered Accounts Act, 1949 (Central Act XXXVIII of 1949) or by a firm of which all the partners are practicing in India as such chartered accountants or by such persons as may be authorized in this behalf by the State Government. 3. Every auditor acting under sub -section (2) shall have access to the accounts and to all books, vouchers, other documents and records in the possession of, or under the control of the working trustee or the manager. Such working trustee or manager shall provide to such auditor all facilities for such access. 4. Notwithstanding anything contained in sub -section (2) the Assistant Commissioner may direct a special audit of the accounts of any public trust whenever in his opinion such special audit is ne cessary and the provisions of sub-section (2) and (3) shall, so far as they may be applicable, apply to such special audit. 5. The Assistant Commissioner may direct the payment of such fee as may be prescribed for such special audit and working trustee or the manager shall be liable to pay the same from the trust properly. Sec. 34 - Auditor's duty to prepare balance sheet and to report irregularities: 1. It shall be the duty of every auditor auditing the accounts of a public trust under section 33 to pr epare a balance sheet and income and expenditure accounts and forward a copy of the same to the Assistant Commissioner within whose jurisdiction the public trust has been registered. 2. The auditor shall, in his report, specify all cases of irregularities illegal or improper expenditure or failure or omission to recover moneys or other property belonging to the public trust or of loss or waste of money or other property thereof and state whether such expenditure, failure, omission, loss or waste was caused in consequence of a breach of trust or misapplication or any other misconduct on the part of the trustee or any other person. Sec. 35 - Budget: The working trustee of every public trust, the gross annual income of which exceeds thirty-six hundred rupee s, shall in each year, submit to the Assistant Commissioner, before such date and in such form as may be prescribed, budget showing the probable receipts and disbursements of the trust property during the following year. Sec. 36 - Inspection and Copies: 1. The budget, the balance sheet, the income and expenditure accounts and the audit report, if any, of a public trust shall be open to inspection in the office of the Assistant Commissioner, by any person having interest in such public trust on payment of such fee as may be prescribed. 2. Subject to such conditions and on payment of such fees as may be prescribed, the Assistant Commissioner shall, on an application made by any person having interest in a public trust, grant to such person a certified copy o f all or any other documents which are open to such inspection. CHAPTER - VIII Powers of officers in relation to Public Trusts. Sec. 37 - Commissioner to be Treasurer of Charitable Endowments: Notwithstanding anything contained in the Charitable Endow ments Act, 1890 (Central Act VI of 1890), the Commissioner shall be deemed to be the Treasurer of Charitable Endowments for the State of Rajasthan appointed under the provisions of the said Act and the property vesting in the Treasurer before the date on w hich this Act comes into force shall be deemed to vest in the Commissioner as the Treasurer of Charitable Endowments, and the provisions of the said Act shall apply to the Commissioner as the treasurer of Charitable Endowments appointed under the said Act. Sec. 38 - Application for directions: 1. If the Assistant Commissioner, on the application of any person having interest in a public trust or otherwise, is satisfied after making such inquiry as he thinks necessary that - (a) the original object of the public trust has failed. (b) the trust property is not being properly managed or administered or (c) the direction of the Court is necessary for the administration of the public trust. he may, after giving the working trustee an opportunity of being hear d, direct such working trustee or any other trustee or person having interest in the trust to apply to the court for directions, within such time not exceeding thirty days as may be specified by the Assistant Commissioner. 2. If the working trustee or an y other trustee or person having interest in the trust so directed fails to make an application as required, or if there is no trustee of the public trust, or if, for any other person, the Assistant Commissioner considers it expedient to do so, he shall himself make an application to the court. Sec. 39 - Application to Commissioner against refusal to apply under Sec. 38: 1. Where the Assistant Commissioner rejects an application under Sub -section (1) of section 38 or fails or refuses to make an applicatio n to the court himself under sub-section (2) of that section, the Commissioner may, on an application made to him within ninety days of such rejection, failure or refusal or upon the facts otherwise coming to his knowledge and after giving the working trustee a reasonable opportunity of being heard, set aside the order of the Assistant Commissioner, if any, and require him to apply to the court himself for directions. 2. Subject to the orders of the Commissioner under sub -section (1) all orders passed by the Assistant Commissioner under section 38 shall be final. Sec. 40 - Powers of the Court on application under Sec. 38 or Sec. 39: 1. On receipt of an application made under or in pursuance of section 38 or section 39 the court shall make or cause to be made such inquiry into the case as it deems necessary and pass such orders thereon as it may consider appropriate. 2. While exercising the powers under sub -section (1) the court shall, besides other powers, have power to make an order for - (a) removing any trustee; (b) appointing a new trustee; (c) declaring what portion of the trust property or of the interest therein shall be allocated to any particular object of the trust; (d) providing a scheme of management of the trust property; (e) directing ho w the funds of a public trust whose original object has failed shall be spent, having due regard to the object for which the trust was created; (f) issuing such other directions as the nature of the case may require. 3. Any order passed by the court under sub-section (2) shall be deemed to be a decree of such court and an appeal shall lie there from to the High Court. Sec. 41 - Application for appointment of new working trustee: 1. If the present working trustee of a public trust - (a) disclaims or dies, (b) is for a continuous period of six months absent from India without the leave of the Commissioner or an Assistant Commissioner or other officer authorized by the State Government in this behalf or leaves India for the purpose of residing abroad. (c) is declared an insolvent, (d) desires to be discharged from the trust, (e) refuses to act as a trustee, (f) becomes unfit or physically in capable to act in the trust or accept as position which is in consistent with the trust or (g) is not availab le to administer the trust such working trustee or any person having interest in the public trust, as the case may be, may apply to Assistant Commissioner having jurisdiction for permission to apply to the court for the appointment of a new working t
Excerpt shown. Open the full act in Lexace.