Yes you can do the aforementioned
Winding up of a perpetual,irreversible public Charitable Trust
It is an absolute, irreversible,irretrievable,Public Charitable Trust.For some valid reasons, the existing TRUSTEES cannot carry-on the activities of the Trust. Its Assets and liabilities have to be Transferred to another public Charitable Trust having similar OBJECTS. For that purpose, what's the procedure to be followed ? From which Authorities (like Income Tax Comission er_Exemptions ,, Law Courts,Registrar of properties etc )permissions are required and how to approach them and obtain required permissions?
Asked 4 years ago in Property Law
Religion: Hindu
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8 Answers
Want to reserve for the time being. Will ask on receiving reply to present question
Asked 4 years ago
Will ask latet
Asked 4 years ago
Trust may be extinguished or terminated only if its purpose is completely fulfilled or its purpose has become unlawful or when the fulfilment of its purpose becomes impossible by destruction of the Trust property or otherwise or when the Trust, being revocable, is expressly revoked
2) .the assets and liabilities of the Trust may be transferred to another charitable Trust having similar objects and the former Trust can be dissolved, provided that the same is done after seeking permission from a competent authority such as the office of the charity commissioner (of a particular state) where the Trust is registered.
3)if a trust’s purpose is completely fulfilled or if the fulfillment of its purpose (objects) becomes impossible because of inadequate funds, an application can now be made by the trustees of such a trust for voluntary de-registration u/s 22(3A) of the Maharashtra Public Trusts Act 1950.
4) you need permission from charity commissioner
5) you don’t need permission from court , registrar of properties
No further queries raised
Under the Indian Trust Act, trust can be extinguished only under certain circumstances—
- When its purpose is completely fulfilled;
- when its purpose becomes unlawful;
- when the fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise;
- when the trust, being revocable, is expressly revoked.
If any of the above circumstances can be invoked in your case you can make use of that.
A trust may be created for any lawful purpose.
The subject-matter of a trust must be property transferable to the beneficiary. It must not be merely beneficial interest under a subsisting trust.
No trust can be revoked by the author of the trust so as to defeat or prejudice what the trustees may have duly done in execution of the trust.
As purpose is completely fulfilled or its purpose has become unlawful or when the fulfillment of its purpose becomes impossible by destruction of the Trust property or otherwise or when the Trust, being revocable, is expressly revoked. However, the assets and liabilities of the Trust may be transferred to another charitable Trust having similar objects and the former Trust can be dissolved, provided that the same is done after seeking permission from a competent authority such as the office of the charity commissioner (of a particular state) where the Trust is registered.
A trust created by will may be revoked at the pleasure of the testator.
A trust otherwise created can be revoked only-
(a) where all the beneficiaries are competent to contract - by their consent;
(b) where the trust has been declared by a non-testamentary instrument or by word of mouth - in exercise of a power of revocation expressly reserved to the author of the trust; or
(c) where the trust is for the payment of the debts of the author of the trust, and hgas not been communicated to the creditors - at the pleasure of the author of the trust.
Illustration
A conveys property to B in trust to sell the same and pay out of the proceeds the claims of A's creditors. A reserves no power of revocation. If no communication has been made to the creditors, A may revoke the trust. But if the creditors are parties to the arrangement, the trust cannot be revoked without their consent.
You are always welcome with more queries on the same or relevant subject at anytime you may feel it would be necessary.
Dear Client,
The beneficiary can direct the trustee to transfer the trust property to him or to such other person as the beneficiary and beneficiary can also transfer his interest in the property to the other person and the person to whom the interest is transferred shall have the same rights and liabilities as the beneficiary had from the date of transfer of interest itself.There is a trust account. In this, all the assets are held by a third party for the protection of the beneficiary. There are different types of trust accounts on the basis of their types.When a third party claims that this is his trust, The beneficiary can file a suit declaring that this property belongs absolutely to the trust.In India, private trust is being governed by the Indian Trust Act, 1882 and on the other hand, public trust is managed by themselves. Except in some states.The registration process is incomplete without the most important document which is ‘Trust Deed’Only Public trust can avail the benefit of exemption from tax.
Public trust is also classified further into two subtypes : One is Charitable trust and the second is religious trust. Till now there is no central legislation for governing public trust. But many states like Maharashtra and Madhya Pradesh have enacted their own separate legislation for public trust.Under Sections 11, 12, and 13 of the income tax act 1995, it is being mentioned that charitable trust will be exempted from all types of income tax.
Thanks & Regards
