Public charitable trust
srikanth PS
(Querist) 23 May 2014
This query is : Resolved
Hi,
One of the public trust has been created in the year 2001 by two trustees. Now one of the trustee is dead.
The other trustee is not interested in running the trust. Can he convert it as private trust??or can he dissolute??
What is the treatment for assets of such trusts?
If so, what is the procedure.
R.V.RAO
(Expert) 24 May 2014
before any sale of property of a public trust, you are bound to take permission of the Principal civil court of that jurisdiction.
source:lawyersclubindia.com/experts/PROPERTY-OF-TRUST-21086.
only private trust can be dissolved as provided in Section 77 of the Indian Trusts Act, 1860.A deed of dissolution of Trust should be executed and registered.
source:lawyersclubindia.com/experts/Trust-dissolution--243726.
.... A public charitable trust can never be dissolved. Charity is indestructible. "A charity once established does not die though its nature may be changed" (Commissioner of Inland Revenue vs. National Anti-Vivisection Society (H.L.) 28 Tax Cases 311(2) at page 375 per Lord Simonds). Public trusts and charitable trusts arc considered in general as synonymous expressions. A public or charitable trust is of a permanent and indefinite character
source: decision in case law of R.P. Kapur And Anr. vs Kaushalya Educational Trust on 21 January, 1982.
AMALGAMATION
The trustees may amalgamate the trust with another Charitable Trust or Institution having similar objects with prior permission of the Charity Commissioner/Court/any other law as may be applicable for the time being.
WINDING UP
In the event of dissolution or winding up of the Trust the assets remaining as on the date of dissolution shall under no circumstances be distributed amongst the Trustees but the same shall be transferred to some other similar Trust/Organisation whose objects are similar to those of this Trust with the permission of the Charity Commissioner / Court / any other law as may be applicable for the time being.
source:http://www.karmayog.com/
Sudhir Kumar, Advocate
(Expert) 24 May 2014
If your doubts are not solved by above reply then visits a lawyer with all papers.
Rajendra K Goyal
(Expert) 24 May 2014
Well advised, agree with the expert RV RAO ji.
Anand Bali Adv.
(Expert) 24 May 2014
I totally agree with The Expert Mr Rao, it is a good explanation of the Question.
R.V.RAO
(Expert) 24 May 2014
thanks to sri rajendra goyal ji, sri anand bali ji and sri jagga rao garu.
T. Kalaiselvan, Advocate
(Expert) 24 May 2014
I too agree and endorse the views of Mr. R.V.Rao on the subject issue, nothing more to add.
R.V.RAO
(Expert) 24 May 2014
thanks to thiru kalaiselvan ji.
