Most Important Amendment In Maharashtra Public Trust Act, 1950: Insertion Of Section 41f

Introduction: An amendment effected in the Maharashtra Public Trusts Act, 1950, has lent the charity commissioner more teeth in

handling errant trustees who take undue advantage of their position and commit breach of the legislation. While earlier the commissioner could at best only dismiss or remove the trustees, now the office is empowered to not only attach the properties of the culpable but also send them to civil prison in the worst-case scenario.

Attachment of Trust Property

A new Section 41F was inserted in the Maharashtra Public Trusts Act 1950 (Mah. 36 of 2018) pertaining to attachment of property in

certain cases.

SECTION 41F:

(1) Wherein it is brought to the notice of the Charity Commissioner by any Assistant Charity Commissioner or Deputy Charity Commissioner or two or more persons having interest in the trust property that disobedience of any of the orders passed under any of the sections in the Chapter VI is committed, the Charity Commissioner may after hearing the parties concerned, order the property of such person guilty of such disobedience or breach, to be attached and may also order such person to be detained in jail for a term not exceeding six months.No attachment under this sub-section shall remain in force for more than one year, at the end of which time, if the disobedience or breach continues, the property attached may be sold, and out of the proceeds the Charity Commissioner may award such compensation as he thinks fit, and shall pay the balance, if any, to the person entitled thereto, and thereupon, any order passed by the Charity Commissioner, under this section, if in force shall stand vacated, or as the case may be, cancelled.

(2) A trustee or a person, against whom the order under this section is passed, may, within ninety days of the date of communication of each order, appeal to the High Court against such order.

NEW RULE 25AAA: New Rule 25AAA lays down the procedure for execution of the order passed under section 41F.

(1) Every application to the Charity Commissioner under sub-section (1) of section 41 F shall set out concisely, the material facts about the breach of the order under any of the sections mentioned in Chapter VI of the Act and shall contain, inter alia, the following particulars, that is to say:

(a) The name, occupation and address of the applicant and the person who has committed breach of the order,

(b) The name and description and number of the trust in respect of which the breach of order has been committed,

(c) The nature of the applicants interest in the trust,

(d) The cause of action and the nature of relief sought for in the application,

(e) The list of documents relied on.

(2) The application shall be verified in the manner provided in sub-rule (3).

(3) There shall be maintained in the office of the Charity Commissioner, a register of applications made to the Charity Commissioner under section 41 F in the form given in Schedule X-AC.

(4) The Charity Commissioner shall then issue notice in the form given in Schedule X-AD to the person who is alleged to have committed breach of the order and upon hearing him, pass appropriate orders regarding attachment of his property and/or his arrest and detention in civil prison.

(5) The Charity Commissioner may issue a certificate to the Collector of the District (by whatever name called) for attachment of the property of the person committing breach and the Collector shall proceed to attach the property and upon further directions of the Charity Commissioner, sell it and remit the sale proceeds to the Charity Commissioner.

(6) The Charity Commissioner shall then pass suitable orders regarding the sale proceeds so remitted by the Collector in accordance with the provisions in section 41 F of the Act.

(7) The Rule prescribed in the Code of Civil Procedure, 1908 for arrest and detention of a judgment debtor in civil prison shall apply for arrest and detention of the person who has committed breach of the

(8) The State Government may notify the civil prison in every District where the office of the Assistant Charity Commissioner or Deputy Charity Commissioner is situated.

CONCLUSION: Maharashtra has about seven lakh public trusts registered, and of these about 70,000 are in Pune.

With personal properties of errant trustees being attached and auctioned, it will be possible to recover some of the money from them. Also, in case of gross violation, they could face imprisonment up to six months.

As per the amendment, the charity commissioner, after hearing the accused, can issue an order for attaching his/her property and/or for his/her arrest and detention in a civil prison. A certificate can be issued to the district collector for attaching the property of the person who committed the breach. On directions from the charity commissioner, the collector can also auction or sell the attached property and remit the sale proceeds to the former.

The charity commissioner can subsequently pass suitable orders regarding the sale proceeds, so remitted by the collector, in accordance with the provisions in Section 41F of the Act.

Under the changed rules of the Maharashtra Public Trusts Act, 1950, guilty trustees can have their properties attached and get thrown into civil prison

The amendment has invoked the provisions under the Code of Civil Procedure, 1908, which allow for the arrest or detention of a judgment debtor in civil prison. The state government has been directed to notify the civil prison in every district where the assistant charity commissioner or deputy charity commissioner has an office.

This section provides for issuance of order for attachment of property of the trust for disobedience of any of the orders passed under any section of chapter VI of the Act and the provision for appeal to the High Court against such orders.