Trust property

Sir,

First of all please tell me the place or state you belong to, as different states have different laws with respect to public trust like maharashtra has Bombay Public Trust Act, 1950 .Secondly, your concern is right as there are many legal compliances required to be followed for purchase of a Trust property including but not limited to Charity Commissioners consent, Court's approval etc. So I would advise you that if you intend to purchase the said property, please acquire the services of a lawyer and get the compliance list completed before entering into a contract.

For any other details please feel free to contact me.

Regards,

Alkesh Agrawal

alkesh.ils@gmail.com

09099040835.

When a trust is formed(the person who forms the trust is called the author of the trust or settlor), the trustees are appointed as per the rules of the trust and they are empowered to perform the duties including dealing with trust property only as per the rules of the tust and for furthering the causes of the trust.

From the details provided it appears to be a public trust, however, it has to be verified. If it is a public trust, the trustees can deal with the property. However, one has to look into the relevant law under which it is formed e.g. as Alkesh has pointed out that in Maharashtra, the public trusts are governed by the Bombay Public Trusts Act. Under this act, the trustees can sell of the property (if it is provided in the trust deed) but the permission of the Charity Commissioner is necessary without which the sale cannot be comleted and the sale deed would not be registered. The Charity Commissioner may ask for tenders to which any eligible party can bid but the trustees do not have to agree to sell the property to any bidder except those that they are willing to. The Charity commissioner's role is only to ensure that the to objects of the Trust, it get the maximum benefit but he cannot force the trust to sell to any buyer.

As Alkesh has suggested, you may take the services of an expert.

Thank you very much sir.

The property and the Trust is in Kerala.

In the trust deed it is mentioned that "Indian Trust act 1882" is applicable to this Trust.

I have checked the title deed with an advocate and he found it is in order but the procedure of selling the trust property he insisted the court permission, where as the Mg.Trustee says it is not required and he is showing a copy of  sale deed by which he already sold the Trust property to an individual.

Seeking your advice sir

Thanks

George Chacko.P

Thank you for the details.

The Indian Trusts Act, 1882 is applicable to a private trust and the trustee has the power to convey the trust property when he is authorised to sell (i.e. when the Instrument of Trust provides for the same)  as per section 39 of the Indian Trusts Act.

Hence you may ask for the copy of the trust deed and also take help of an expert to complete the transaction.

It is not the amount of money you pay to the expert that will ensure that you get a good expert but check his qualifications and the name in the market please.

Hope this helps.

S Jadhav

Thank you verymuch Alkesh sir and Javedh sir I have enquired with the 2 advocates in Kerala, as the land and Trust situates in Kerala. they says that the final opinion can be given on produce of court permission.

 Though the Trust deed says the Trust act 1882 is applicable, the benificieries are the poor and Orphance. Further,in the Trust deed, the income of the Trust is including the donations from the well wishers, like minded and philanthropists.Also the appointed Trustees are not from one single family, but also trustees are from different families and religion. Name of the trust itself says .........ORPHANCE EDUCATIONAL CHARITABLE TRUST.....So this can also be treated as Public Trust. Also the advocate says that wheather Private Trust or Public trust, getting court permission is always safe. But the Trust says getting the permission from the court will be delayed more than a year.  

Trust deed allows selling of its property and the mg. Trustee can excute the sale deed or can avail the loan by pledging its [property after passing the resolution in the Trust board meeting. In the clause says that the land can be sold, for buying a better property, or to fullfil the object of the Trust in better way.Also please note that the present mg. trustee  who started the Trust. Also in the Trust deed , it says that the Trust is permenant Trust.Eeither the author of the Trust or his family donot have right to weeken or pull down the Trust. Also it says that all its assets and business should be as per Income Tax act 1961 and its further modifications.

Main contents of the deed is as explained above only. As the Trust deed is in Malayalam, no use of uploading it.

Please give a advice  to me.

Thanking you

George Chacko

Sir,

Please understand that reading a document and you giving us a details of a document are different. I understand that the document is in malayalam, I dont think that should be a proiblem. please scan it and upload it. It would be easier to understand it after reading it. If u dont want to upload it on a public forum, forward it on alkesh.ils@gmail.com.

Thank you for the details provided.

I agree with Alkesh that the expert needs to see the original document so as to understand it properly.

As you have discussed with an advocate whom you trust, please follow his advice too.

However, please take other opinions also into account.

Public Trusts under the Indian Trusts Act are also governed by sections 92 & 93 of the Civil Procedure Code.

In any deal there will be some time from the day you finalise the discussion/deal and when the process is completed. e.g. the managing trustee who intends to sell the land had not bought/kept the land in his personal name but in the trust and now he wants to sell it. If he wanted to complete the deal quickly he could have done so quickly if it was in his name instead of the trust. There are many procedural formalities to be completed before the deal is done and hence it will take time - maybe a few months.

Please follow he process required even if it takes more time. Do act on the advise of your trusted advocate.

S Jadhav - sjadhav101@yahoo.com