Buying the property of Trust Under Section 36 of Bombay Public Trust Act 1950

Alienation of immovable property of public trust :­

(1) Notwithstanding anything contained in the instrument of trust –

(a) no sale, exchange or gift of any immovable property, and
(b) no lease for a period exceeding ten years in the case of agricultural
land or for a period exceeding three years in the case of non­
agricultural land or a building,
belonging to a public trust, shall be valid without the previous sanction of
the Charity Commissioner. Sanction may be accorded subject to such
31condition as the Charity Commissioner may think fit to impose, regard
being had to the interest, benefit or protection of the trust;
(c) if the Charity Commissioner is satisfied that in the interest of any
public trust any immovable property thereof should be disposed of, he
may, on application, authorise any trustee to dispose of such property
subject to such conditions as he may think fit to impose, regard being
had to the interest or benefit or protection of the trust.

(2) The Charity Commissioner may revoke the sanction given under
clause (a) or clause (b) of sub­section (1) or, the ground that such sanction was
obtained by fraud or misrepresentation made to him or by concealing from the
Charity Commissioner, facts material for the purpose of giving sanction; and
direct the trustee to take such steps within a period of one hundred and eighty
days from the date of revocation (or such further period not exceeding in the
aggregate one year as the Charity Commissioner may from time to time
determine) as may be specified in the direction for the recovery of the property.

(3) No sanction shall be revoked under this section unless the person in
whose favour such sanction has been made has been given a reasonable
opportunity to show cause why the sanction should not be revoked.

(4) If, in the opinion of the Charity Commissioner, the trustee has failed
to take effective steps within the period specified in sub­section (2), or it is not
possible to recover the property with reasonable effort or expense, the Charity
Commissioner may assess any advantage received by the trustee and direct
him to pay compensation to the trust equivalent to the advantage so assessed.

36A. Powers and duties of and restrictions on, trustees:­

(1) A trustee of every public trust shall administer the affairs of the trust and
apply the funds and properties thereof for the purpose and objects of the trust in
accordance with the terms of the trust, usage of the institution and lawful
directions which the Charity Commissioner or Court may issue in respect
thereof, and exercise the same care as a man of ordinary prudence does when
dealing with such affairs, funds or property, if they were his own.

(2) The trustee shall, subject to the provisions of this Act and the instrument of
trust, be entitled to exercise all the powers incidental to the prudent and
beneficial management of the trust, and to do all things necessary for the due
performance of the duties imposed on him.

(3) No trustee shall borrow moneys (whether by way of mortgage or otherwise)
for the purpose of or on behalf of the trust of which he is a trustee, except with
the previous sanction of the Charity Commissioner, and subject to such
conditions and limitations as may be imposed by him in the interest or protection
of the trust.

(4) No trustee shall borrow money for his own use from any property of the
public trust of which he is a trustee.
Provided that, in the case of trustee who makes a gift of debentures or
any deposit in his business or industry the trustee shall not be deemed to have
borrowed from the trust for his own use.

36B. Register of moveable and immovable properties :­

(1) A public trust shall prepare and maintain a register of all moveable
and immovable properties (not being property of a trifling value) of such trust in
such form or forms giving all such information as may be prescribed by the
Charity Commissioner.

(2) Such register shall show the jewels, gold, silver, precious stones,
vessels and utensils and all other moveable property belonging to the trust with
their description, weight and estimated value.

(3) Such register shall be prepared within three months from the expiry of
the accounting year after the commencement of the Bombay Public Trust
(Amendment) Act, 1970,

(4) Such register shall be signed by all the trustees or by any person duly
authorised by trustees in this behalf after verifying its correctness, and shall be
made available to the auditor for the purpose of auditing if the accounts are
required to be audited under the provisions of this Act. Where the accounts are
not required to be audited, the trustees shall file a copy of such register duly
signed and verified, with the Deputy or Assistant Charity Commissioner of the

(5) The auditor shall mention in the audit report whether such register is
properly maintained or not, and the defects or inaccuracies, if any, in the said
34register and the trustees shall comply with the suggestions made by the auditor
and rectify the defects or inaccuracies mentioned in the audit report within a
period of three months from the date on which the report is sent to the trustees.

(6) Every year within three months from the date of balancing the
accounts, the trustee or any person authorised by him shall scrutinize such
register, and shall bring it up­to­date by showing alterations, commissions or
additions to the same, and such changes shall be reported to the Deputy or
Assistant Charity Commissioner in the manner provided in section 22.


2 thoughts on “Buying the property of Trust Under Section 36 of Bombay Public Trust Act 1950

  1. Nikhil August 8, 2013 at 8:06 pm Reply

    Great Post Keep it up ….. 🙂

  2. Nikhil August 8, 2013 at 8:08 pm Reply

    Great Post Keep It Up ……….. 🙂

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