PROPERTY OF TRUST
JAGADEESH GOVIND
(Querist) 18 March 2009
This query is : Resolved
Sir,
Mr.A has purchased a property as Trustee of 'X'.The Trust 'X'is constituted by four trustees belongs to the same family.Subsequently they dissolved the Trust.
'A' sold the property,he acquired as a trustee of 'X' to Mr.B.
1) Whether the sale by A is legally right ?
2) What are the procedure for disposing the trust properties on termination of trust?
Pl.Advice
Regards,
JAGADEESH
Manish Singh
(Expert) 18 March 2009
please provide whether the trust is a private or a public one.
in both the cases the sale is not a avalid sale.
if its a public trust then the sale is not lawful in the eyes of law since before any sale of propery of a public trust you ar bound to take permission of the Principal civil court of that jurisdiction
PALNITKAR V.V.
(Expert) 18 March 2009
In fact the parties must have made some arrangement about the property of the trust at the time of dissolution. Certain procedure has to be followed for dissolution of trust. Whether that procedure has been followed. If not then the dissolution may not be legal. Please check. If there is no arrangment made at the time of dissolution, the property still remains the property of the trust and can not be legally sold without prior permission of competent authority.
Manish Singh
(Expert) 18 March 2009
if its a private trust then do look into the clauses under the trust deed. if its silent abount disposing off any trust property by trustees, then you can not sell any of the trus's property but in the above situation you can move the civil court of your jurisdiction for permission to sell the said property under th Indian trust act.
if a private trust,after extinguishment of the trust, the property shall go to the benefeciary.
and in other conditions where all the trsutees ar willing to vacate their seats, they shall apply to the civil court and the court shall take appropiate measures in respect thereof.
if the sale done by the trustee was not authorised but the transferee was not aware of trust deed etc and purchased it bonafidely, the rights of the propety in th hands of transferee can not be interfered wth.
who is the benefeciary under the trust and for what purposes the trust was created.
Shashikant V. Patil
(Expert) 19 March 2009
Since the matter pertaining to the transfer of property belongs to trust, its matters are governed by Charity Commissioner.
