Which trust to form , private or public .
v t
(Querist) 26 February 2014
This query is : Resolved
i am starting an education institute, for government courses affiliation i need to have a mandatory trust, can i make a private trust with just two members ? will private trust be accepted for all types of education affiliation process by government ? and if i have to create a minimum 7 member public trust what precautions should i take as all the money invested is my private money, thanks in advance
R.V.RAO
(Expert) 27 February 2014
according to indiankanoon.org,the diff. between public and pvt.trusts is as follows.
the Supreme Court in Deoki Nandan v. Murlidhar (AIR 1957 SC 133), for the purpose of expatiating .....arguments on the question of distinction between a public Trust and a private Trust...... argued that the distinction between a private Trust and a public Trust is that in the former, the beneficiaries are specific individuals, whereas, in the latter, they are general public or a class thereof. In the former, the beneficiaries are persons who are ascertained or capable of being ascertained and in the latter, they constitute a body which is not capable of ascertainment.
in Thomas v. State of Kerala (2008(1) KLT 363)........ the learned senior counsel submitted that the distinction between private and public Trust is that where beneficiaries of the Trust are not individuals or ascertained individuals or family members but are un
ascertained members of Christian faith as well as members belonging to public, it is public trust.
..... In.... Travancore-Cochin High Court in Mathevan v. Muthia (AIR 1952 Travancore-Cochin 323).... argued that the essential feature of a public trust is that the endowment must be for a public purpose of a charitable or religious nature and that the beneficial interest in the trust must be vested in the public in general or in a considerable section of the public.
The provisions of Indian Trusts Act do not apply on Public Trusts.
Like the private trusts, public trusts may be created inter vivos or by will. The Indian Trusts Act does not apply to public trusts which can be created by general law.
There are three certainties required to create a charitable trust are as follows
a declaration of trust which is binding on settlor,
setting apart definite property and the settlor depriving himself of the ownership thereof, and
a statement of the objects for which the property is thereafter to be held, i.e. the beneficiaries.
trust deed is imp.document for regn.of trust , stating the main objects of trust,trustees names etc..
2 members required for a trust regn..there is no maximum.
keep all moneys in separate bank account.get accounts audited.
if a public trust,level of public confidence high
R.V.RAO
(Expert) 01 March 2014
thanks.sri kalaiselvanji.
T. Kalaiselvan, Advocate
(Expert) 01 March 2014
