Introduction: The Maharashtra public trust act regulates and makes better provisions for the administration of public religious and charitable trust in the state of Maharashtra.

The state government is concerned with the huge pendency of the cases before the authorities under this Act. Especially the change reports, more particularly the uncontested change reports to make entries in the registers kept under section 17 of the Act. The state government constituted a committee to expedite the disposal of the change reports by the Assistant charity commissioner or deputy charity commissioner and also the proceedings before other authorities under the said act by suggesting comprehensive amendment in the said act.

Keeping in view the objective and expedition and swift disposal of proceeding by the authorities with organization administering the said act and further streamlining the proceedings before the authorities under the Act by providing time limit and incorporating the proceeding enabling provisions it was found absolutely necessary to amend the provision of the said act. So we discussed only amendment in section 22 of Maharashtra public Amendment (Second Amendment) Act, 2017 and Maharashtra public trust (second

amendment) Rules, 2019 one by one as follows.

AMENDMENT TO CHANGE REPORT PROVISIONS

Background: Under section 22 of the Act where any change occurred in any of the entries recorded in register of public trust in form of schedule-I, maintained by office of Deputy/Assistant Charity Commissioner. The trustee shall within 90 days from the date of occurrence of such change, report such change to Deputy/Assistant Charity Commissioner concerned. Such change report shall be in the form of schedule III and shall be verified in the manner provided in sub rule (4) of Rule 6.

By amendment proviso added to sub section(1) of section 22.”

The Deputy or Assistant charity commissioner may extend the period of ninety days for reporting the change on being satisfied that there was a sufficient cause for not reporting the change within the stipulated period subject to payment of costs by the reporting trustee, which shall be credited to the Public trust Administration fund”.

Observation:

a) Extension of time for filing change report: Previously, the Maharashtra Public Trust Act,1950 did not expressly provide for an extension of time for filing change report or condonation of delay in filing it. Even trustee were knows to apply for condonation of delay for late filing of change report under the General provision of sec.5 of limitation act, 1963.

In Madanrao S/o nanasaheb Chavan Vs Maharashtra and Ors. (2002(4) Mh.L.J 872)

The delay in filing the change report should therefore be condoned as a matter of course, unless there are special reasons not to so.It

is well settled that court should be liberal in condoning the delay. It is not necessary to explain each day’s delay.

The new proviso 22(1) permits extension of time if sufficient cause is shown. However the explanation of delay need to be satisfactory. The scope of this expression is laid down the following broad principle.

The state of West Bengol Vs The administator Howrah municipality and others (1972) 1 scc 366. and Shakuntala Devi Jain Vs Kuntak Kumari (1969(1) SCR 1006

In this case the said expression should receive a liberal construction so as to advance substantial justice when no negligence or iraction or want of bonafide is importable to a party.

Oriental Aroma Chemical Industries Ltd. Vs V Gujarat Industrial Development Corporation (2010(5)SCC459)

The court observed that existence of sufficient cause depends upon facts to each case and no hard and fast rule can be applied in deciding such case.

Thus each application for extension of time will have to be considered by the Deputy or assistant charity commissioner on the facts and circumstances of the case.

Charity commissioner has discretion regarding computation of costs for late filing by case to case.

To sub section (2) of sec. 22 the following proviso added namely.

-“In the case of change in the names and addresses of the trustees and to managers or the mode of succession to the office of the trustship and managership, the Deputy or ass charity Commissioner may pass provisional order accepting the change within the period of 15 working days and issue a notice inviting objections to such change within 30 days from the publication of such notice.

-If no objections are received within the period of 30 days, the provisional order shall be final and entry thereof shall be taken in the register kept under sec. 17 in the prescribed manner.

-If objections are received within the said period of 30 days, the Deputy or assistant charity commissioner may hold an enquiry in the prescribe manner and record a finding, as provided by sub section(3) of this section, within 3 months from the date of filing objections.”

Observation: The New concept of Provisional acceptance was introduced by new amendment act. The said concept is helped to ensure the transparency and honesty in the functioning of public trust.

The said process may take more time which results in huge period of being pending matters.

But, in charity commissioner office there is huge pendency of change reports. And applying the concept of provisional acceptance to change report proceedings is seems difficult after observing internal administration of charity office. And hence applying concept of provisional acceptance for better proceedings of change report is doubtful and questionable.

Although, section 22 uses the term ‘may’ for holding an inquiry in prescribed manner and record a finding

Rajabhau Damodar Raikar Vs The Assistant Charity Commissioner and others (2016(1) BomCR233)

The Bombay high court has held that a change report whether contested or not, has to be decided after holding an inquiry in a manner provided in Rule 7 of the Bombay Public Trusts Rules, 1951. No change report can be accepted unless the assistant Charity Commissioner Or Deputy Charity Commissioner, as the case may be, after holding an inquiry, comes to a conclusion that the change as reported has occurred. Sub-Section (3) of section 22 requires findings to be recorded with reasons while disposing of the change report whether there is contest or not.

Bombay Public Trusts (Second Amendment) Rules, 2019

The Law & Judiciary Department of Maharashtra State has notified Bombay Public Trusts (Second Amendment) Rules, 2019 dated 15th May 2019.

Under Bombay Public Trusts (Second Amendment) Rules 2019 there are several significant changes concerning digitization of records and which is very welcome.

New Rule 5A pertaining to digitization of trusts records inserted.

1.  All the existing trusts records in all the offices under the control of the Charity Commissioner, Maharashtra State

shall be converted into electronic record by the department.

2.  Trustees may submit change reports, applications for registration of trusts under the Maharashtra Public Trusts Act, 1950, online on the Official Website of the Charity Commissioner. The procedure shall be specified for taking cognizance of such online applications and may also make necessary modifications in the said procedure. The procedure and the modification thereof shall be published on the Official Website of the Charity Commissioner.

In rule 13 of the principal Rules, after sub-rule (2), the following rules shall be inserted, namely:

(2A) Change Report in the form of Schedule-III shall be accompanied by the following documents,

a. Copy of notice or agenda of the meeting of the trustees for the proposed change.

b. Copy of resolution passed by the board of trustees proposing the change.

c. In case of sole trustee, the letter of addition or deletion signed by the said sole trustee.

d. Consent letters of incoming trustees with their details (e. full address, identity proof, mobile number, phone number, email address etc).

e. Affidavit as contemplated in sub-rule (4) of rule 6 of the outgoing trustees: Provided that, the Deputy or Assistant Charity Commissioner may exempt filing of such affidavit in an appropriate case such as when the trustee, despite due diligence, is not found.

f. Trust Deed, constitution and Scheme of the Trust.

g. Any other document deemed necessary by the Charity Commissioner, as declared by order published in the Official Gazette and on the Official Website of the Charity Commissioner.

(2B) Memorandum of Change in the form of Schedule-IIIA shall be accompanied by the copy of registered Conveyance Deed and any other relevant documents transferring property to the trust or by the trust.”

Notice of inquiry on official website

Rule 7A pertains to public notice before making certain inquiries by the charity commissioner and has been amended to do away with notice on the ‘Notice Board’ of the charity commissioner’s office and replaced with or by publication of such notice on the Official Website of the Charity Commissioner.