No. 392]

chennai, friday, november 30, 2018

Karthigai 14, Vilambi, Thiruvalluvar Aandu–2049

TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

[Regd. No. TN/CCN/467/2012-14.

government of tamil nadu

[R. Dis. No. 197/2009.

2018

[Price: Rs.13.60 Paise.

Part IV—Section 2

Tamil Nadu Acts and Ordinances

392-Ex-IV-2—1

[241]

The following Act of the Tamil Nadu Legislative Assembly received the assent of the

President on the 27th November 2018 and is hereby published for general information:—

ACT No. 44 of 2018.

An Act to provide for protection and maintenance of the public charitable

trusts and endowments created and administered by the persons or

organisations of Vanniyakula Kshatriya community in the State of

Tamil Nadu and for matters connected therewith or incidental thereto.

Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Sixty-ninth

Year of the Republic of India as follows:-

CHAPTER- I.

PRELIMINARY.

(1) This Act may be called the Tamil Nadu Vanniyakula Kshatriya Public Charitable

Trusts and Endowments (Protection and Maintenance) Act, 2018.

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall come into force on such date as the Government may, by notification,

appoint.

Short title,

extent and

commence-

ment.

2. This Act shall apply to all public charitable trusts and endowments created and

administered by the persons or organisations of Vanniyakula Kshatriya community.

Application of

the Act.

3. In this Act, unless the context otherwise requires,-

(a) “Administrative Officer” means an officer appointed by the Board under

sub-section (1) of section 34;

(b) “beneficiary” means a person or an institution for whose benefit a trust or

endowment is created and includes charitable objects and any other objects of public utility;

(d) “Chief Administrative Officer” means the officer appointed under sub-section (1)

of section 19;

Definitions.

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Tamil Nadu Act

45 of 1994

(e) “Chairperson” means the Chairperson appointed under clause (a) of

sub-section (1) of section 9;

(f) “charitable purpose” includes relief of the poor, education, medical relief,

advancement of any other object of utility or welfare or the like purposes to the general

public or a section thereof;

(g) “Court” means,-

(i)

relation

property

the

trust

and

endowment

situated in the city of Chennai, the Chennai City Civil Court;

(ii)

in relation to a property of the trust and endowment situated elsewhere,

the Court of Civil Judge (Senior Division) having jurisdiction over the area in which the

property of the trust and endowment is situated, or if there is no such Court, the District

Court having such jurisdiction;

(iii) in relation to a property of trust and endowment situated within the

ambit of two or more Courts, any Court which would have jurisdiction as aforesaid in

relation to either all or any of such properties;

(h) “endowment” means all property given or endowed for the benefit of, or used

as of right by, the Vanniyakula Kshatriya community or any section thereof for the support

or maintenance of objects of utility to the said community or section, such as rest-houses,

choultries, patasalas, schools and colleges, houses for feeding the poor and institutions for

the advancement of education, medical relief and public health or other objects of a like

nature; and includes the institution concerned;

(i) “Government” means the State Government;

(j) “hereditary trustee” means the trustee of a charitable trust, the succession to

whose office devolves by hereditary right or is regulated by usage or is specifically provided

for by the founder, so long as such scheme of succession is in force;

(k) “member” includes the member, ex-officio; Member Secretary and Chairperson

of the Board;

(l) “person interested” means any person who is entitled to receive any pecuniary

or other benefits from the trust or endowment and includes a person who is entitled to

attend or is in the habit of attending the performance of service or charity connected with

the institution or who is entitled to partake or is in the habit of partaking in the benefit of any

charity or the distribution of gifts thereat;

(m) “prescribed” means prescribed by rules;

(n) “Survey Officer” means an officer appointed under sub-section (1) of

section 4;

(o) “Trust” means a trust created by a person or group of organisation belonging

to Vanniyakula Kshatriya to fulfill charitable purposes as envisaged by the author of the

trust;

(p) “trustee or administrator” means any person appointed to manage or

administer any trust or endowment;

(q) “Vanniyakula Kshatriya” means the community of Vanniyakula Kshatriya

(including Vanniyar, Vanniya, Vannia Gounder, Gounder or Kandar, Padayachi, Palli and

Agnikula Kshatriya), as notified by the Government under the Tamil Nadu Backward

Classes, Scheduled Castes and Scheduled Tribes (Reservation of seats in Educational

Institutions and of appointments or posts in the services under the State) Act, 1993.

Tamil nadu government gazette extraordinary

243

CHAPTER-- II.

LISTING OF PROPERTIES OF TRUST AND ENDOWMENT.

(1) The Government may, by order, appoint a Survey Officer not below the rank of

Tahsildar for surveying the properties belonging to the trust and endowment existing within

such area as may be specified in such order on the date of the commencement of this Act.

(2) The Survey Officer shall, after making such enquiry as may be necessary,

submit his report in respect of the properties of trust and endowment to the Board containing

the following particulars, namely:-

(a) the number of trusts and endowments available in the area;

(b) the nature and object of the formation of each trust and endowment;

(d) the amount of land revenue, charges and taxes payable in respect of

each trust and endowment;

(e) the expenses incurred by each trust and endowment; and

(f) such other particulars relating to each trust and endowment as may be

prescribed.

(3) The Survey Officer shall, while making any enquiry, have the same powers

as are vested in a Civil Court under the Code of Civil Procedure, 1908 in respect of the

following matters, namely:-

(a) summoning and examining any witness;

(b) requiring the discovery and production of any document;

(d) issuing commissions for the examination of any witness or accounts;

(e) making any local inspection or local investigation;

(f) such other matters as may be prescribed.

(4) If, during any such enquiry, any dispute arises as to whether a particular trust

or endowment is a private trust or endowment or public trust or endowment and there are

clear indications in the deed of trust or endowment as to its nature, the dispute shall be

decided on the basis of such deed.

(5) The Government may, by order, direct the Survey Officer to make a second

or subsequent survey of trust and endowment properties in any area and the provisions of

sub-sections (2),(3) and (4) shall apply to such survey as they apply to a survey directed

under sub-section (1):

Provided that no such second or subsequent survey shall be made until the expiry

of a period of twenty years from the date on which the report in relation to the immediately

previous survey was submitted under sub-section (2).

5. The Board shall examine the report submitted to it under sub-section (2) of section 4

and publish in the Tamil Nadu Government Gazette, a list of properties of each trust and

endowment in the State.

Publication

of list of

properties

of trust and

endowment.

Central Act

V of 1908

Preliminary

survey of

properties

of trusts and

endowments.

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Disputes

regarding

properties

belonging

to trust and

endowment.

(1) If any question or dispute arises whether a particular property specified in

the list of properties belongs to a trust or endowment, any person interested therein may

institute a suit in a Court for the decision of the question or dispute:

Provided that no such suit shall be entertained by the Court after the expiry of one year

from the date of the publication of the list of properties belonging to trust and endowment.

(2) The Survey Officer shall not be made a party to any suit under sub-section (1) and

no suit, prosecution or other legal proceeding shall lie against him in respect of anything

which is done in good faith or intended to be done in pursuance of this Act or any rules

made thereunder.

(3) The list of properties belonging to a trust or endowment shall, unless it

is modified in pursuance of a decision of the Court under sub-section (1), be final and

conclusive.

Recovery of

cost of

survey.

7. (1) The total cost of making a survey including the cost of publication of the list

of properties belonging to trust and endowment under this Chapter shall be borne by

the respective trust or endowment in proportion to the net annual income of the trust or

endowment as assessed by the Chief Administrative Officer.

(2) Notwithstanding anything contained in the deed or instrument by which

the trust or endowment was created, the trustee or administrator thereof may pay from

the income of the properties of the trust or endowment any sum due from the trust or

endowment under sub-section (1).

CHAPTER-III.

ESTABLISHMENT OF VANNIYAKULA KSHATRIYA PUBLIC CHARITABLE TRUSTS

AND ENDOWMENTS BOARD AND ITS FUNCTIONS.

Incorporation.

Composition of

the Board.

8. (1) With effect from such date as the Government may, by notification, appoint in

this behalf, there shall be established by the name “Vanniyakula Kshatriya Public Charitable

Trusts and Endowments Board” or in such other name as may be specified in the notification.

(2) The Board shall be a body corporate having perpetual succession and a

common seal with power to acquire and hold property and to transfer any such property

subject to such conditions and restrictions as may be prescribed and shall, by the said

name, sue and be sued.

(1) The Board shall consist of,—

(a) a Chairperson, who shall be a person belonging to the Vanniyakula

Kshatriya community;

(b) the following members who shall belong to the Vanniyakula Kshatriya

community, namely:-

(i) one person from among the retired Judges of the Supreme Court

or High Court or District Court;

(ii) one person from the All India Service;

(iii) two persons from among the Member of the Legislative Assembly;

(iv) one person from among the trustees of trusts and administrator of

the endowments;

(v) one person representing Vanniyakula Kshatriya community

organizations;

(vi) two eminent persons having good reputation in the field of legal

profession, auditing, business, education, engineering and industry;

(vii) two women who have served the cause of Vanniyakula Kshatriya

community ;

Tamil nadu government gazette extraordinary

245

(i) Secretary to Government, Backward Classes, Most Backward

Classes and Minorities Welfare Department; and

(ii) Commissioner or Director of Most Backward Classes and

Denotified Communities Welfare Department:

Provided that it shall not be necessary that the ex-officio members belong to

Vanniyakula Kshatriya community.

(d) the Member-Secretary.

(2) Subject to the provisions of this Act, the Government shall, by notification,

constitute or re-constitute the Board, appointing the Chairperson and the members from

such date as may be specified therein.

10. The Chairperson and every member of the Board shall hold office for such period,

not exceeding three years, as may be specified by the Government in this behalf.

Term of office.

11. A person shall be disqualified for being appointed, or for continuing, as member

of the Board other than the ex-officio members referred to in clause (c) of sub-section (1) of

section 9, if,

(i) he is less than twenty-one years of age;

(ii) he is found to be a person of unsound mind;

(iii) he is an un-discharged insolvent;

(iv) he has been convicted for an offence involving moral turpitude and such

conviction has not been reversed or he has not been granted full pardon in respect of such

offence;

(v) he has been on previous occasions,-

(a) served as a Chairperson or member of the Board for two terms.

Explanation.- For the purpose of computing the period of two terms referred to in this

clause, the period during which a person held office either as a Chairperson or member or

as both shall be taken into account;

(b) removed from his office as a member or as a trustee or administrator of

any trust or endowment which is in the purview of the Board; or

or endowment either for mismanagement or for corruption.

Disqualification

for being

appointed, or

for continuing

as, a member

of the Board.

12. (1) The Board shall meet for the transaction of business at such time and place as

may be prescribed by regulations.

(2) The Chairperson, or in his absence, any member chosen by the members

from amongst themselves, shall preside at a meeting of the Board.

(3) Subject to the provisions of this Act, all questions which come before any

meeting of the Board shall be decided by a majority of votes of the members present, and in

the case of equality of votes, the Chairperson or, in his absence, any other person presiding

shall have a second or casting vote.

Meetings of the

Board.

13. The quorum for any meeting of the Board shall be not less than fifty per cent of

members including Chairperson, but excluding the number of vacancies.

Quorum.

Committee of

the Board.

14. (1) The Board may, whenever it considers necessary, constitute either generally or

for a particular purpose or for any specified area, committees for supervision of the property

of trust or endowment;

(2) The constitution, functions and duties and the terms and conditions of office of

such committees shall be determined by the Board:

Provided that it shall not be necessary for the members of such committees to be

members of the Board.

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Resignation of

Chairperson

and

members.

15. The Chairperson or any other member, other than ex-officio member may, at any

time, by writing and addressed to the Government, resign from the office of the Chairperson

or member, as the case may be but shall continue in office until his resignation is accepted.

Removal of

Chairperson

and

members.

16. The Government may, by notification, remove the Chairperson of the Board or any

member thereof, other than ex-officio member, if he-

(i) is or becomes subject to any disqualification specified in section 11; or

(ii) refuses to act or is incapable of acting or acts in a manner which the

Government, after hearing any explanation that he may offer, considers to be prejudicial to

the interest of trust or endowment; or

(iii) fails, in the opinion of the Board, to attend three consecutive meetings of the

Board without sufficient excuse.

Filling of a

vacancy.

17. When the seat of Chairperson or a member becomes vacant by his removal,

resignation, death or otherwise, a new Chairperson or a new member shall be appointed in

his place and the Chairperson or such member shall hold office so long as the Chairperson

or member, whose place he fills would have been entitled to hold office, if such vacancy

had not occurred.

Vacancies,

etc., not to

invalidate

proceedings

of the Board.

18. No act or proceeding of the Board shall be invalid by reason only of the existence

of any vacancy amongst its members, or any defect in the constitution thereof.

Appointment of

Chief Admini

strative

Officer

and his term

of office and

other condi-

tions of

service.

19. (1) There shall be a Chief Administrative Officer of the Board not below the rank of

Deputy Secretary to Government who shall be a person belonging to Vanniyakula Kshatriya

community, and shall be appointed by the Government in consultation with the Board.

(2) The term of the office and other conditions of service of the Chief Administrative

Officer shall be such as may be prescribed.

(3) The Chief Administrative Officer shall be the Member- Secretary of the Board

and shall be under the administrative control of the Board.

Officers

and other

employees

of the Board.

20. (1) For efficient performance of the functions of the Board under this Act, the Board

may appoint such number of officers and other employees as may be necessary, with the

permission of the Government.

(2) The appointment, term of office and conditions of service of officers and other

employees shall be such as may be provided by the regulations.

21. (1) Subject to the provisions of this Act and of the rules made thereunder and the

directions of the Board, the functions of the Chief Administrative Officer shall include—

(i) to investigate carefully the nature and extent of the properties of trust

and endowment and whenever necessary to call for an inventory of properties of trust

and endowment and to call for accounts, returns and informations from the trustee and

administrator;

(ii) to inspect or to cause inspection of property of trust and endowment and

accounts, records, deeds or related documents;

(iii) to do generally such acts as may be necessary for the control,

maintenance and superintendence of trust and endowment.

(2) In exercising the powers of giving directions under sub- section (1) in respect

of any trust or endowment, the Board shall act in conformity with the directions found in the

deed of the trust or endowment.

(3) Save as otherwise expressly provided in this Act, the Chief Administrative

Officer shall exercise such powers and perform such duties as may be assigned or

delegated to him under this Act.

Duties and

powers of

Chief Admini-

strativ

Officer.

Tamil nadu government gazette extraordinary

247

22. (1) Where the Chief Administrative Officer considers that an order or resolution

passed by the Board-

(i) has not been passed in accordance with the law; or

(ii) is in excess of, or is an abuse of, the powers conferred on the Board by

or under this Act or by any other law; or

(iii) if implemented, is likely to-

(a) cause financial loss to the Board or to the concerned trust or

endowment; or

(b) lead to a riot or breach of peace; or

(d) is not beneficial to the Board or to trust or endowment generally, he

may, before implementing such order or resolution, place the matter before the Board for its

re-consideration.

(2) The Board may constitute a committee under section 14 to consider the

aspects pointed out by the Chief Administrative Officer and on the suggestions of the

committee, the Board may reconsider the matter or refer the matter to the Government

along with the committee’s report, Chief Administrative Officer’s remarks and the order or

resolution of the Board and the decision of the Government thereon shall be final.

Power of Chief

Admini

strative

Officer in

respect of

orders or

resolutions of

the Board.

23. The Board may, by a general or special order in writing, delegate to the Chairperson,

any other member, or any other officer or employee of the Board or any committee subject

to such conditions and limitations as may be specified in the said order, such of its powers

and duties under this Act, as it may deem necessary.

Delegation of

powers of

the Board.

24. (1) Subject to the provisions of this Act and of the rules made thereunder, the

Chief Administrative Officer may,-

(a) exercise all or any of the powers conferred on him by or under this Act

with the previous approval of the Board through the Collector of the District in which the

concerned trust or endowment is situated or through any other responsible officer whom the

Collector may appoint for such purpose;

(b) delegate, from time to time, any of his power to any Collector or any such

officer appointed by him; and

(2) Where any delegation of powers is made by the Chief Administrative Officer

under sub-section (1), the person to whom such delegation is made, may exercise those

powers in the same manner and to the same extent, as if they have been conferred on him

directly by this Act and not by way of delegation.

Chief Admini

strative Officer

to exercise

powers

through

Collectors,

etc.

Powers of

Chief Admini

strative

Officer to

inspect

records,

registers, etc.

25. The Chief Administrative Officer or any officer of the Board duly authorized by

him, shall subject to such conditions and restrictions as may be prescribed and subject

to the payment of such fees, if any, levied under any law for the time being in force, be

entitled at all reasonable time to inspect, in any public office, any records, registers or other

documents relating to a trust or endowment or movable or immovable properties which are

trust or endowment properties or are claimed to be properties of trust or endowment.

Inspection of

records.

26. (1) The Board may allow inspection of its proceedings or other records in its

custody and issue copies of the same on payment of such fees and subject to such

conditions as may be prescribed.

(2) All copies issued under this section shall be certified by the Chief Administrative

Officer of the Board in the manner provided in section 76 of Indian Evidence Act, 1872.

(3) The powers conferred on the Chief Administrative Officer by sub-section (2)

may be exercised by such other officer or officers of the Board as may either generally or

specially be authorized in this behalf by the Board.

Central Act I

of 1872.

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27. (1) Subject to any rules that may be made under this Act, the general superintendence

of all trust and endowment shall vest with the Board and it shall be the duty of the Board

to exercise its powers under this Act, as to ensure that the trust and endowment under

its superintendence are properly maintained, controlled and administered and the income

thereof is duly applied to the objects and for the purposes for which such trust and endowment

were created or intended:

Provided that in exercising its powers under this Act, in respect of any trust or

endowment, the Board shall act in conformity with the directions of the trust deed or the

documents through which the property was dedicated to charitable purposes.

Explanation.- For the removal of doubts, it is hereby declared that in this sub-section,

trust or endowment includes a trust or endowment in relation to which any scheme has been

made by any Court of law, whether before or after the commencement of this Act.

(2) Without prejudice to the generality of the foregoing power, the functions of the

Board shall be-

(i) to maintain a record containing information relating to the origin, income,

object and beneficiaries of every trust and endowment;

(ii) to ensure that the income and the property of trust and endowment are

applied for the objects and for the purposes for which such trust and endowment were

intended or created;

(iii) to give directions for the administration of trust or endowment;

(iv) to settle schemes for management of trust and endowment:

Provided that no such scheme shall be settled without giving an opportunity of being

heard to the affected parties;

(v) to scrutinize and approve the budgets submitted by the trustee or

administrator and to arrange for auditing of accounts of the trust or endowment;

(vi) to appoint and remove the trustees and administrators in accordance with

the provisions of this Act;

(vii) to take measures for the recovery of lost properties of any trust or

endowment;

(viii) to institute and defend suits and proceedings relating to property of any

trust or endowment;

(ix) to sanction any transfer of immovable property of any trust or endowment

by way of sale, gift, mortgage, exchange or lease in accordance with the provisions of this

Act:

Provided that no such sanction shall be given, unless at least two thirds of the total

members of the Board vote in favour of such transaction;

(x) to administer the Vanniyakula Kshatriya Public Charitable Trusts and Endowments

(Protection and Maintenance) Fund;

(xi) to call for such returns, statistics, accounts and other informations from the trustees

or administrators with respect to the property of trust or endowment as the Board may, from

time to time, requires;

Powers and

functions of

the Board

Tamil nadu government gazette extraordinary

249

(xii) to inspect or cause inspection of the property of trust and endowment,

accounts, records or deeds and documents relating thereto;

(xiii) to investigate and determine the nature and extent of trust and endowment

and its property and to cause, whenever necessary, a survey of the property of such trust

and endowment;

(xiv) to direct-

(a) the utilization of the surplus income of a trust and endowment consistent

with the objects of trust and endowment;

(b) in what manner the income of a trust or endowment, the objects of

which are not evident from any written instrument, shall be utilized for the benefit of poor

Vanniyakula Kshatriya Community for their economic, social, educational upliftment and

livelihood activities.

exist or has become incapable of achievement, that so much of the income of the trust or

endowment as was previously applied to that object shall be applied to any other object

which shall be similar, or nearly similar or to the original object or for the benefit of the poor

Vanniyakula Kshatriya Community for their economic, social, educational upliftment and

livelihood activities:

Provided that no direction shall be given under this clause without giving opportunity

of being heard to the affected parties;

(xv) generally do all such acts as may be necessary for the control, maintenance

and administration of trust and endowment.

(3) Where the Board has settled any scheme of management under clause (iv) or

given any direction under clause (xiv) of sub-section (2), any person interested in the trust

or endowment or affected by such settlement or direction may institute a suit in a Court for

setting aside such settlement or directions and the decision of the said Court thereon shall

be final.

(4) Where the Board is satisfied that any land belonging to trust or endowment

offers a feasible potential for development as a shopping centre, market, housing flats and

the like, it may serve upon the trustee or administrator of the concerned trust or endowment

a notice requiring him to convey its decision whether they are willing to execute such

development as may be specified in the notice within such time, but not less than sixty

days, as may be specified in the said notice.

(5) On consideration of the reply, if any, received to the notice issued under

sub-section (4), if the Board is satisfied that the trustee or administrator is not willing or is not

capable of executing the works required to be executed as specified in the notice, the Board

may, with prior approval of the Government, take over the property, clear it of any building

or structure thereon, and execute such works from the funds of the trusts or endowments or

by raising funds on the security of the concerned trust or endowments property and control

and manage the properties, till such time as all the expenses incurred by the Board together

with interest thereon, the expenditure on maintenance of such works and other legitimate

charges incurred on the property are recovered from the income derived from the property:

Provided that the Board shall compensate annually the trustee or administrator of the

concerned trust or endowment to the extent of the average annual net income derived from

the property during the three years immediately preceding the takeover of the property by

the Board.

(6) On recouping all the expenses as detailed in sub-section (5), from the income

of the developed property, the developed property shall be handed over to the trustee or

administrator of the concerned trust or endowment.

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Powers of

inspection

by Chief

Adminis-

trative

Officer or

persons

authorized

by him.

28. (1) The Chief Administrative Officer with the prior approval of the Board either

himself or any other person authorized by him in writing in this behalf, may inspect all

movable and immovable properties, which are property of trust or endowment and all

records, correspondences, plans, accounts and other documents relating thereto, for the

purpose of examining whether, by reason of any failure or negligence on the part of the

trustee or administrator in the performance of his administration or administrative duties,

any loss or damage has been caused to the property of trust or endowment.

(2) Whenever any such inspection as referred to in sub-section (1) is made, the

concerned trustee or administrator and all officers and other employees working under him

and every person connected with the administration of trust or endowment shall extend all

such assistance and facilities as may be necessary and reasonably required by the person

making such inspection to carry out his work, and shall also produce any movable property

or documents relating to trust or endowment as may be called for by the person making the

inspection and furnish to him such information relating to trust or endowment as may be

required by him.

(3) Where after any such inspection, it appears that the trustee or administrator or

any officer or other employee who was working under him had misappropriated, misapplied

or fraudulently retained, any money or property of trust or endowment, or had incurred

irregular, unauthorized or improper expenditure from the funds of trust or endowment,

the Chief Administrative Officer may after giving reasonable opportunity to the trustee or

administrator to show cause as to why an order for recovery of the amount or property,

should not be passed against him, after considering such explanation, if any furnished by

him, determine the amount or the property, which has been misappropriated, misapplied or

fraudulently retained, or the amount of the irregular, unauthorized or improper expenditure

incurred by such person and make an order directing such person to pay the amount so

determined and to restore the said property to the trust or endowment, within such time as

may be specified in the order.

(4) The trustee or administrator or other person aggrieved by such order may,

within thirty days of the receipt of order by him, make an appeal to the Court:

Provided that no such appeal shall be entertained by the Court unless the

appellant first deposits with the Chief Administrative Officer, the amount which has been

determined under sub-section (3) as being payable by the appellant and pending disposal

of appeal, the Court shall have no power to make any order of stay of the operation of the

order made by the Chief Administrative Officer under sub-section (3).

(5) The Court after taking evidence as it may think fit, may confirm, reverse, or

modify the order made by the Chief Administrative Officer under sub-section (3), or may

remit either in part, or in whole, the amount specified in such order and may make such

orders as to cost as it may think appropriate.

(6) The order made by the Court under sub-section (5) shall be final.

Recovery of

the amount

determined

under

section 28.

29. Where any trustee or administrator or other person who has been ordered under

sub-section (3) or sub-section (5) of section 28 to make payment or restore possession

of any property, omits or fails to do so within the time specified in such order, the Chief

Administrative Officer with the prior approval of the Board, shall take such steps, as he may

think fit, to recover possession of the property aforesaid and shall also send a certificate

to the Collector of the district in which the property of the trustee or administrator or other

person situate, stating therein the amount that has been determined by Chief Administrative

Officer or by the Court, as the case may be, under section 28, as being payable by the

trustee or administrator or other person, and thereupon, the Collector shall recover the

amount specified in such certificate, as if, it was an arrear of land revenue and on the

recovery of such amount, pay the same to the Chief Administrative Officer who shall credit

the amount to the funds of the concerned trust or endowment.

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251

CHAPTER-IV.

REGISTRATION OF TRUST AND ENDOWMENT.

Central Act

V of 1908

30. (1) Every trust and endowment, whether created before or after the commencement

of this Act, shall be registered at the office of the Board.

(2) Application for registration shall be made by the trustee or administrator of

trust or endowment:

Provided that such application may be made by trust or endowment or a

beneficiary of it or the descendants of the testator or any person belonging to Vanniyakula

Kshatriya community.

(3) An application for registration shall be made in such form and in such manner

and at such place as the Board may by regulation provide from time to time and such

application shall contain the following particulars:-

(a) description of trust or endowment sufficient for identification thereof;

(b) annual gross income from property of trust or endowment;

the property of trust or endowment;

(d) an estimate of the expenses annually incurred in realization of the income

from the property of trust or endowment;

(e) the amount set apart for the following:-

(i) the salary and other allowances to the officers and other employees

of trust or endowment,

(ii) for charitable purposes,

(iii) for the beneficiaries, and

(iv) for such other purposes;

(f) any other particulars as may be prescribed by the Board by

regulation.

(4) Such application shall be accompanied by a copy of trust deed or will, or if no such

deed has been executed or a copy thereof cannot be obtained, shall contain the particulars

as far as they are known to the applicant, of the origin, nature and object of the trust or

endowment; and particulars regarding beneficiaries, if any.

(5) Such application made under sub-section (2) shall be signed and verified by the

applicant in the manner provided in the Code of Civil Procedure 1908, for the signing and

verification of the pleadings.

(6) The Board may require the applicant to supply any further particulars or information

that the Board may consider necessary.

(7) The Board may, on receipt of application for registration, make such enquires as

it thinks fit in respect of genuineness and validity of the application and correctness of the

particulars therein and when the application is made by any person other than the person

administering the trust or endowment, and shall hear him if he desires to be heard.

(8) In the case of trust or endowment created before the commencement of this

Act, every application for registration shall be made, within three months from such

commencement and in the case of trust or endowment created after such commencement,

within three months from the date of creation of trust or endowment.

Registration

of trust and

endowment.

31. The Board shall maintain a register of trust and endowment, with such particulars

as may be provided by regulations.

trust and

endowment.

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Decision as

to whether

a property

is trust or

endowment.

32.(1) Where the Board has reason to believe that any property of any trust or

endowment, is a Vanniyakula Kshatriya Public Charitable Trust or Endowment, the

Board may, notwithstanding anything contained in any Act, hold an enquiry in regard to

such property and, if after such enquiry, the Board is satisfied that such property is trust

or endowment property, call upon the trust or endowment, as the case may be, either to

Endowment or show cause why such property should not be so registered:

Provided that in all such cases, notice of action proposed to be taken under this

sub-section shall be given to the authority by whom the trust or endowment had been

registered.

(2) The Board shall, after duly considering such cause as may be shown in

pursuance of notice issued under sub-section (1), pass such orders as it may think fit

and the order so made by the Board shall be final, unless it is revoked or modified by a

competent Court under this Act.

Power to

cause

registration

of trust and

endowment

and to

amend the

33. The Board may direct the trustee or administrator to apply for the registration of

trust or endowment and to supply any information regarding a trust or endowment or may

itself cause the trust or endowment to be registered or may at any time amend the register

of trust and endowment.

CHAPTER-V.

ADMINISTRATION OF TRUST AND ENDOWMENT.

34. (1) Notwithstanding anything contained in this Act, the Board may, if it is of the

opinion that it is necessary so to do in the interests of trust or endowment, appoint an

Administrative Officer, on whole time or part-time basis with salary or in honorary capacity,

with such terms and conditions as may be specified therefor:

Provided that the person to be chosen as Administrative Officer should be a person

from Vanniyakula Kshatriya Community.

(2) The Administrative Officer so appointed under sub-section (1) shall exercise

such powers and discharge such duties pertaining to the administration of the property of

trust or endowment for which he has been appointed and shall exercise those powers and

discharge those duties under the direction, control and supervision of the Board.

(3) The salaries and allowances of the Administrative Officer and his staff shall

be fixed by the Board having due regard to the income of the trust or endowment and the

nature of the duties of the Administrative Officer and his staff.

(4) The salaries and allowances of the Administrative Officer and his staff shall be

paid by the Board from its fund and if the trust or endowment generates any additional income

due to the appointment of the Administrative Officer, the Board may claim reimbursement of

the amount spent towards the salaries and allowances from the fund of the concerned trust

or endowment.

(5) The Board may, for sufficient reasons and after giving a reasonable opportunity

of being heard to the Administrative Officer or a member of his staff, remove or dismiss the

Administrative Officer, or a member of his staff from his post.

(6) Any Administrative Officer or a member of his staff who is aggrieved by any

order of removal or dismissal made under sub-section (5) may, within thirty days from the

date of communication of the order, prefer an appeal against the order to the Court and the

Court may, after considering such representation as the Board may make in the matter, and

after giving a reasonable opportunity to the Administrative Officer or a member of his staff

of being heard, confirm, modify or reverse the order.

Board to

appoint

Administrative

Officer for

trust or

endowment.

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253

35. (1) The Board shall, if it is satisfied that the objects or any part thereof, of a trust

or endowment have ceased to exist, where such cessation took place before or after the

commencement of this Act, cause an inquiry to be held by the Chief Administrative Officer,

in the prescribed manner, to ascertain the property and funds pertaining to such trust or

endowment.

(2) On receipt of the enquiry report of the Chief Administrative Officer, the Board

shall pass an order—

(a) specifying the property and funds of such trust or endowment;

(b) directing that the property and funds of such trust or endowment which

have been recovered shall be applied or utilized for the renovation of trust or endowment

and when there is no need for making any such renovation or where the utilization of the

funds for such renovation is not possible, be appropriated, to any of the purposes specified

in sub-clause (c) of clause (v) of sub-section (2) of section 27.

(3) The Board may, if it has reason to believe that any building or other place

which was being used for charity has, whether before or after the commencement of this

Act, ceased to be used for that purpose, make an application to the Court for an order

directing the recovery of possession of such building or other place.

(4) The Court may, after making such enquiry as it may think fit and satisfied that

such building or other place,—

(a) is the property of trust or endowment;

(b) has not been acquired under any law for the time being in force relating

to acquisition of land or is not under any process of acquisition under any such law, or has

not vested in the Government under any other law for the time being in force relating to land

reforms; and

under any law for the time being in force to occupy such building or other place, make an

order,-

(i)

directing the recovery of such building or place from any person

who may be in unauthorized possession thereof, and

(ii)

directing that such property, building or place be used for charitable

purpose or instruction as before, or if such use is not possible, be utilized for any purpose

as given in sub-clause (c) of clause (v) of sub-section (2) of section 27.

Board to cause

enquiry in

relation

to trust or

endowment.

36. (1) In case of any change in the management of a registered trust or endowment

due to death or retirement or removal of the trustee or administrator, the incoming trustee

or administrator shall forthwith, and any other person, may cause notice of the change to

the Board.

(2) In case of any other change in any of the particulars mentioned in section 30,

the trustee and administrator shall, within three months from the date of occurrence of the

change, cause notice of such change, to the Board.

Change in the

manage ment

of trust and

endowment

to be

informed.

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CHAPTER-VI.

BUDGET OF TRUST AND ENDOWMENT.

Budget of

trust or

endowment

not under

direct

manage-

ment of

Board.

37. (1) Every trustee or administrator of trust or endowment shall prepare a budget

for the next financial year showing the estimated receipts and expenditure in such form as

may be specified.

(2) Every trustee or administrator of trust or endowment shall submit such budget

at least ninety days before the beginning of the financial year to the Board and shall make

adequate provision for the following:-

(i) for carrying out the objects of the trust and endowment;

(ii) for the protection and maintenance of the properties of trust and

endowment;

(iii) for discharge of all liabilities and subsisting commitments binding on the

trust or endowment under this Act or any other law for the time being in force.

(3) For making alterations, omissions or additions in the budget as it may deem

fit, the Board may give such direction consistent with the objects of the trust or endowment

and the provisions of this Act.

(4) If in the financial year, the trustee of trust or administrator of endowment

finds it necessary to modify the provision made in the budget in regard to the receipt or to

distribution of the amount to be expended under the different heads, he may submit to the

Board a supplementary or a revised budget and the provision of sub-section (3) shall, as far

as may be, apply to such supplementary or revised budget.

Budget of

trust and

endowment

under direct

management

of the Board.

38. (1) Budget showing the estimated receipt and expenditure for the next financial

year for each of trust and endowment under direct management of the Board, shall be

prepared by the Chief Administrative Officer in such form and at such time as may be

prescribed and the same to be submitted by him to the Board for its approval.

(2) The Chief Administrative Officer shall submit statement of details of increase

of income, if any, for each trust and endowment under the direct management of the Board

and the steps taken for its better management during the year, while submitting the budget

under sub-section (1).

(3) The Chief Administrative Officer shall keep regular accounts and be responsible

for the proper management of every trust and endowment under the direct management of

the Board.

(4) Every budget submitted by the Chief Administrative Officer under sub-section (1)

shall comply with the requirements of section 37 and, for this purpose, references therein

to the trustee of trust or administrator of endowment shall be construed as reference to the

Chief Administrative Officer.

(5) The audit of accounts of trust and endowment under the direct management

of the Board shall be undertaken by the State Examiner of Local Funds or any other officer

appointed by the Government for this purpose, irrespective of the income of the trust and

endowment.

(6) The provisions of sub-sections (2) and (3) of section 40 and the provisions of

sections 41 and 42 shall, in so far as they are not inconsistent with the provisions of this

section, apply to the audit of accounts referred to in this section.

(7) Where any trust or endowment is under the direct management of the Board,

such administrative charges, as may be specified by the Chief Administrative Officer, shall

be payable by the trust or endowment to the Board:

Provided that the Chief Administrative Officer shall not collect more than ten per cent

of the gross annual income of the trust or endowment under the direct management of the

Board as administrative charge.

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255

CHAPTER-VII.

ACCOUNTS OF TRUST AND ENDOWMENT.

39. (1) Every trustee and administrator shall keep regular accounts of all transactions

relating to the trust and endowment.

(2) In every year, every trustee and administrator shall prepare and furnish to the

Board a full and true statement of accounts, in such form and containing such particulars

as may be provided by regulations of the Board, of all the monies received or expended by

the trustee or administrator on behalf of the trust or endowment during the period of twelve

months ending on the thirty-first day of March and thereafter the same shall be submitted to

the Board on or before thirtieth day of April:

Provided that the date on which the annual accounts are to be closed may be varied

at the discretion of the Board.

Submission of

accounts of

trust and

endowment.

40. (1) The accounts of trust and endowment submitted to the Board under section 39

shall be audited and examined in the following manner, namely:-

(a) in the case of a trust or endowment having no income or a net annual

income not exceeding ten thousand rupees, the submission of a statement of accounts

shall be a sufficient compliance with the provision of section 39 and the accounts of ten per

cent of such trust and endowment shall be audited annually by an auditor appointed by the

Board;

(b) the accounts of the trust or endowment having net annual income

exceeding ten thousand rupees shall be audited annually, or at such other intervals as

may be prescribed, by an auditor appointed by the Board from out of the panel of auditors

prepared by the Government and while drawing up such panel of auditors, the Government

may specify the scale of remuneration of auditors.

(2) The Government may, at any time, cause the account of any trust or endowment

audited by the State Examiner of Local Funds or by any other officer designated for that

purpose by the Government.

(3) The auditor shall submit his report to the Board and the report of the auditor

shall, among other things, specify all cases of irregular, illegal or improper expenditure or

of failure to recover money or other property caused by neglect or misconduct and any

other matter which the auditor considers it necessary to report; and the report shall also

contain the name of any person, who, in the opinion of the auditor, is responsible for such

expenditure or failure and the auditor shall, in every such case, certify the amount of such

expenditure or loss as due from such person.

(4) The cost of the audit of the accounts of a trust or endowment shall be met from

the funds of that trust or endowment:

Provided that the remuneration of the auditors appointed from out of the panel

drawn by the Government in relation to trust and endowment having a net annual income

of more than ten thousand rupees but less than fifteen thousand rupees shall be paid in

accordance with the scale of remuneration specified by the Government in clause (b) of

sub-section (1):

Provided further that where the audit of the accounts of any trust or endowment

is made by the State Examiner of Local Funds or any other officer designated by the

Government in this behalf, the cost of such audit shall not exceed one and a half per cent

of the net annual income of such trust or endowment and such costs shall be met from the

funds of the trust or endowment concerned.

Audit of

accounts

of trust and

endowment.

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Board to pass

orders on

auditor’s

report.

41. (1) The Board shall examine the auditor’s report, and may call for the explanation

of any person in regard to any matter mentioned therein, and shall pass such orders as

it thinks fit including orders for the recovery of the amount certified by the auditor under

sub-section (3) of section 40.

(2) The trustee or administrator or any other person aggrieved by any order made

by the Board may, within thirty days of the receipt of the order by him, apply to the Court

to modify or set aside the order and the Court may, after taking such evidence as it may

think necessary, confirm or modify the order or remit the amount so certified, either in whole

or in part, and may also make such order as to costs as it may think appropriate in the

circumstances of the case.

(3) No application made under sub-section (2) shall be entertained by the Court

unless the amount certified by the auditor under sub-section (3) of section 40 has first been

deposited in the Court and the Court shall not have any power to stay the operation of the

order made by the Board under sub-section (1).

(4) The order made by the Court under sub-section (2) shall be final.

(5) Every amount for the recovery of which any order has been made under

sub-section (1) or sub-section (2), shall, where such amount remains unpaid, be recoverable

in the manner specified in section 28 or section 29 as if the said order were an order for the

recovery of any amount determined under sub-section (2) of section 42.

Dues recover-

able as

arrears of

land revenue.

42. (1) Every sum certified to be due from any person by an auditor in his report under

section 40 unless such certificate is modified or cancelled by an order of the Board or of

the Court made under section 41, and every sum due on a modified certificate shall be paid

by such person within sixty days after the service of a demand for the same issued by the

Board.

(2) If such payment is not made in accordance with the provisions of sub-section (1), the

sum payable may, on a certificate issued by the Board after giving the person concerned an

opportunity of being heard, be recovered in the same manner as an arrear of land revenue.

CHAPTER-VIII.

Management OF Trust AND ENDOWMENT.

Duties of

trustee and

administrator.

43. It shall be the duty of every trustee and administrator-

(i) to carry out the directions of the Board in accordance with the provisions of this

Act or of any rule or order made thereunder;

(ii) to furnish such returns and supply such information or particulars as may, from

time to time, be required by the Board in accordance with the provision of this Act or of any

rule or order made thereunder;

(iii) to allow inspection of trust and endowment properties, accounts or records or

deeds and documents relating thereto by the Board;

(iv) to discharge all public dues; and

(v) to do any other act which he is lawfully required to do so by or under this Act.

Trustee and

administrator

entitled to

pay certain

costs from

income of

the property

of trust or

endowment.

44. Notwithstanding anything contained in the trust or endowment deed, every

trustee or administrator may pay from the income of the property of trust or endowment

any expenses properly incurred by him for the purpose of enabling him to furnish any

particulars, documents or copies under section 30 or any accounts under section 39 or any

other information or documents required by the Board or for the purpose of enabling him to

carry out the directions of the Board.

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257

45. (1) Notwithstanding anything contained in the trust and endowment deed, any gift,

sale, exchange or mortgage of any immovable property of trust and endowment, shall be

void unless such gift, sale, exchange or mortgage is effected with the prior sanction of the

Board.

Explanation.- If any inam property was granted to the trust, and included in the trust

property, the provision under sub-section (1) above shall apply for any alienation of that

property.

(2) The Board may, after publishing in the Tamil Nadu Government Gazette, the

particulars relating to the transaction referred to in sub-section (1) and inviting any objections

and suggestions with respect thereto and considering all objections and suggestions, if any,

that may be received by it from the concerned trustee or administrator or any other person

interested in the trust or endowment, accord sanction to such transaction, if it is of opinion

that such transaction is,—

(i) necessary or beneficial to the trust or endowment;

(ii) consistent with the objects of the trust or endowment;

(iii) the consideration thereof is reasonable and adequate:

Provided that the sale of the property sanctioned by the Board shall be effected by

public auction and shall be subject to confirmation by the Board within such time as may

be prescribed:

Provided further that the Court may, on the application of the aggrieved trustee or

administrator or other person, for reasons to be recorded by it in writing, permit such sale

to be made otherwise than by public auction, if it is of opinion that it is necessary so to do

in the interest of the trust or endowment.

(3) The utilization or investment of the amount realized by sale or exchange,

mortgage of any property shall be made by the trustee or administrator subject to the

approval of the Board, and where any amount has been raised by mortgage of any

such property, the trustee or administrator or other person shall make repayment of the

mortgage-debt and obtain a discharge of the mortgage-debt from the mortgagee within

such reasonable time as the Board may specify.

(4) Every approval given by the Board under sub-section (3) shall be communicated

to the trustee or administrator and shall also be published in the manner prescribed.

(5) The trustee or administrator or any other person having an interest in the trust

and endowment, who is aggrieved by the decision given under sub-section (3), may within

ninety days from the date of communication to him of such decision or the publication of

the decision, as the case may be, prefer an appeal to the Court against such decision,

and thereupon, the Court may, after giving the appellant and the Board, a reasonable

opportunity of being heard, confirm, modify or set aside such decision.

(6) Where, before the commencement of this Act, any sale, exchange, or

mortgage of any immovable property belonging to any trust or endowment was effected,

without the prior sanction from appropriate authority or Court detriment to the interest of the

trust or endowment, such transaction shall be null and void and shall be deemed never to

have been effected and accordingly no right or title in such property shall vest in any person

acquiring the property by such transaction and any such property shall be deemed to be

the property of the trust or endowment concerned and any person in possession of such

property shall be deemed to be an encroacher and thereafter the provisions of sections 51

and 52 shall apply.

Alienation of

property of

trust and

endowment

without

sanction of

Board to be

void.

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Recovery of

property of

trust and

endowment

transferred in

contravention

of section 45.

46. (1) If the Board is satisfied, after making any inquiry in such manner as may be

prescribed, that any immovable property of a trust or endowment entered as such in the

the previous sanction of the Board in contravention of the provision of section 45, it may

send a requisition to the Collector within whose jurisdiction the property is situated to obtain

and deliver possession of the property to it.

(2) On receipt of a requisition under sub-section (1), the Collector shall pass an

order directing the person in possession of the property, to deliver the property to the Board

within a period of thirty days from the date of the service of the order.

(3) Every order passed under sub-section (2) shall be served-

(i) by giving or tendering the order, or by sending it by post to the person for

whom it is intended; or

(ii) if such person cannot be found, by affixing the order on some conspicuous

part of his last known place of abode or business, or by giving or tendering the order to

some adult male member or servant of his family or by causing it to be affixed on some

conspicuous part of the property to which it relates:

Provided that where the person on whom the order is to be served is a minor, service

upon his guardian or upon any adult male member or servant of his family shall be deemed

to be the service upon the minor.

(4) Any person aggrieved by the order of the Collector under sub-section (2) may,

within a period of thirty days from the date of the service of the order, prefer an appeal to

the Court within whose jurisdiction the property is situate and the decision of the Court on

such appeal shall be final.

(5) Where an order passed under sub-section (2) has not been complied with

and the time for appealing against such order has expired without an appeal having been

preferred or the appeal, if any, preferred within that time has been dismissed, the Collector

shall obtain possession of the property in respect of which the order has been made, taking

such police assistance, as may be necessary for the purpose and deliver it to the Board.

(6) In exercising his functions under this section, the Collector shall be guided by

such rules as may be prescribed.

Restrictions on

purchase

of property

on behalf

of trust or

endowment.

47. Notwithstanding anything contained in a trust and endowment deed, no immovable

property shall be purchased for or on behalf of any trust or endowment from the funds of

any trust or endowment except with the prior sanction of the Board, and the Board shall not

accord such sanction unless it considered that the acquisition of such property is necessary

or beneficial to the trust or endowment and that the price proposed to be paid therefor is

adequate and reasonable:

Provided that before such sanction is accorded, the particulars relating to the proposed

transaction shall be published in the Tamil Nadu Government Gazette inviting objections

and suggestions with respect thereto and the Board shall, after considering the objections

and suggestions that may be received by it from the trustee or administrator or any other

person interested in the trust and endowment make such orders as it may deem fit.

Restriction

on power

to grant

lease of the

properties

of trust or

endowment.

48. (1) A lease for any period exceeding three years of any immovable property which

is property of trust or endowment shall, notwithstanding anything contained in the deed or

instrument of trust or endowment or in any other law for the time being in force, be void and

of no effect.

(2) A lease for a period exceeding one year and not exceeding three years of

any immovable property which is the property of trust or endowment shall, notwithstanding

anything contained in the deed or instrument of trust or endowment or in any other law for

the time being in force, be void and of no effect unless it is made with the previous sanction

of the Board.

(3) The Board shall, in granting sanction for lease or sub-lease or renewal thereof

under this section, review the terms and conditions on which the lease or sub-lease is

proposed to be granted or renewed and make its approval subject to the revision of such

terms and conditions in such manner as it may direct.

(4) Every trust and endowment shall inform the Board about the lease of its

property and obtain permission to continue the lease and for grant of sanction for lease or

renewal thereof, subject to provision of this section.

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259

49. No trustee or administrator shall spend any money out of the funds of the trust or

endowment of which he is the trustee or administrator, for meeting any costs, charges, or

expenses which are or may be, incurred by him, in relation to any suit, appeal or any other

proceeding for, or incidental to, his removal from office or for taking any disciplinary action

against himself.

Trustee or

administrator

not to spend

any money

belonging

to trust and

endowment

for self-

defence.

50. (1) Where any trustee or administrator or committee of management has been

removed by the Board in accordance with the provision of this Act, or of any scheme made

by the Board, the trustee or administrator or the committee so removed from the office

(hereinafter in this section referred to as the removed trustee or administrator or committee)

shall hand over charge and deliver possession of the records, accounts and all properties

of the trust and endowment (including cash) to the successor trustee or the successor

committee, within one month from the date specified in the order.

(2) Where any removed trustee or administrator or committee fails to deliver

charge or deliver possession of the records, accounts and properties (including cash) to the

successor trustee or administrator or committee within the time specified in sub-section (1), or

prevents or obstructs such trustee or administrator or committee, from obtaining possession

thereof after the expiry of the period aforesaid, the successor trustee or administrator or

any member of the successor committee may make an application accompanied by a

certified copy of the order appointing such successor trustee or administrator or committee,

to any Judicial Magistrate within the local limits of whose jurisdiction any part of the trust or

endowment property is situate and, thereupon, such Judicial Magistrate may, after giving

notice to the removed trustee or administrator or members of the removed committee,

make an order directing the delivery of charge and possession of such record, accounts

and properties (including cash) of the trust or endowment, to the successor trustee or

administrator or the committee, as the case may be, within such time as may be specified

in the order.

(3) Where the removed trustee or administrator or any member of the removed

committee, omits or fails to deliver charge and possession of the records, accounts and

properties (including cash) within the time specified by the Judicial Magistrate under

sub-section (2), the removed trustee or administrator or every member of the removed

committee, as the case may be, shall be punishable with imprisonment for a term which

may extend to six months or with fine which may extend to ten thousand rupees, or with

both.

(4) Whenever any removed trustee or administrator or any member of the

removed committee omits or fails to comply with the orders made by the Judicial Magistrate

under sub-section (2), the Judicial Magistrate may authorize the successor trustee or

administrator or committee to take charge and possession of such records, accounts,

properties (including cash) and may authorize such person to take such police assistance

as may be necessary for the purpose.

(5) No order of appointment of the successor trustee or administrator or committee

shall be called in question in the proceedings before the Judicial Magistrate under this

section.

(6) Nothing contained in this section shall bar the institution of any suit in a Court

by any person aggrieved by any order made under this section, to establish that he has

right, title and interest in the properties specified in the order made by the Judicial Magistrate

under sub-section (2).

Duties of

trustee or

administrator

or committee

to deliver

possession of

records, etc.

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CHAPTER-IX.

REMOVAL OF ENCROACHMENT.

Removal of

encroach

ment from

the property

of trust and

endowment.

51. (1) Whenever the Chief Administrative Officer considers whether on receiving any

complaint or on his own motion that there has been an encroachment on any land, building,

space or other property, which is the property of trust or endowment and, which has been

registered as such under this Act, he shall cause to be served upon the encroacher a

notice specifying the particulars of the encroachment and calling upon him to show cause

before a date to be specified in such notice, as to why an order requiring him to remove the

encroachment before the date so specified should not be made and shall also send a copy

of such notice to the concerned trustee or administrator.

(2) The notice referred to in sub-section (1) shall be served in such manner as

may be prescribed.

(3) If, after considering the objections, received during the period specified in

the notice, and after conducting an inquiry in such manner as may be prescribed, the

Chief Administrative Officer is satisfied that the property in question is property of trust

or endowment and that there has been an encroachment on any such property of trust or

endowment, he may, by an order, require the encroacher to remove such encroachment

and deliver possession of the land, building, space or other property encroached upon,

to the trustee of the trust or administrator of the endowment, within such time as may be

specified in the order.

(4) Nothing contained in sub-section (3) shall prevent any person aggrieved by

the order made by the Chief Administrative Officer under that sub-section from instituting a

suit in a Court to establish that he has right, title or interest in the land, building, space or

other property:

Provided that no such suit shall be instituted by a person who has been let into

possession of the land, building, space or other property as a lessee, licensee or mortgagee

by the trustee of the trust or administrator of the endowment or by any other person

authorized by him in this behalf.

Enforcement

of the order

made under

section 51.

52. (1) Where the person, ordered under sub-section (3) of section 51 to remove any

encroachment, omits or fails to remove such encroachment, within the time specified in

the order or, as the case may be, fails to vacate the land, building, space or other property

to which the order relates, within the time aforesaid, the Chief Administrative Officer may

apply to the Judicial Magistrate within the local limits of whose jurisdiction the land, building,

space or other property is situate for evicting the encroacher, and, thereupon, such Judicial

Magistrate shall make an order directing the encroacher to remove the encroachment,

or as the case may be, vacate the land, building, space or other property and to deliver

possession thereof to the concerned trustee or administrator and in default of compliance

with the order, remove the encroachment or, as the case may be, evict the encroacher

from the land, building, space or other property and may, for the purpose, take such police

assistance as may be necessary.

(2) (a) Any person who, on or after the commencement of this Act, continues to

be in occupation, otherwise than by a lawful possession of a land belonging to a charitable

trust or endowment shall be guilty of an offence under this Act.

(b) Whoever contravenes the provisions of clause (a) shall, on conviction,

be punished with imprisonment for a term which shall not be less than six months but which

may extend to five years and with fine which may extend to five thousand rupees.

(b) except on the complaint in writing of the Chief Administrative Officer.

(d) No offence punishable under clause (b) shall be inquired into or tried by

any Court inferior to that of a Judicial Magistrate of the first class.

Tamil nadu government gazette extraordinary

261

CHAPTER-X.

POWER OF BOARD IN THE ADMINISTRATION OF trust or endowment.

53. (1) Where a trustee or administrator refuses to pay or fails to pay any revenue,

charges or taxes due to the Government, any local authority or any statutory Board or any

Government Company, the Board may discharge the dues from the Board Fund and may

recover the amount so paid from the trust or endowment property and may also recover

damages not exceeding twelve and a half per cent of the amount so paid.

(2) Any sum of money due under sub-section (1) may, on a certificate issued by

the Board after giving the trustee or administrator concerned an opportunity of being heard,

be recovered in the same manner as an arrear of land revenue.

Power of Board

to pay dues

in case of

default by

trustee or

administrator.

54. For the purpose of making provision for the payment of rent, land revenue, charges

and taxes due to the Government or any local authority or any statutory board or any

Government Company for the discharge of the expenses of the repair of the property of

trust and endowment and for the preservation of the property of trust and endowment, the

Board may direct the creation and maintenance, in such manner as it may think fit, of a

reserve fund from the income of a trust and endowment.

Creation of

reserve fund.

55. The Board may, if it is satisfied that it is necessary so to do, extend the time within

which any act is required to be done by the trustee and administrator under this Act.

Extension of

time.

56. (1) If a trustee or administrator fails to-

(i) apply for the registration of the trust or endowment;

(ii) furnish statements of particulars or accounts or returns as required under

this Act;

(iii) supply information or particulars as required by the Board;

(iv) allow inspection of the properties of trust and endowment, accounts,

records or deeds and documents relating thereto;

(v) deliver possession of any trust and endowment property, if ordered by

the Board or Court;

(vi) carry out the directions of the Board;

(vii) discharge any public dues; or

(viii) do any other act which he is lawfully required to do by or under this Act,

he shall, unless he satisfies the Board or the Court that there was reasonable cause for his

failure, be punishable with fine which may extend to five thousand rupees.

(2) Notwithstanding anything contained in sub-section (1), if-

(a) a trustee or administrator omits or fails, with a view to concealing the

existence of a trust or endowment, to apply for its registration under this Act,-

(i)

in the case of a trust or endowment created before the

commencement of this Act, within the period specified therefor in sub-section (8) of

section 30;

(ii) in the case of any trust or endowment created after such

commencement, within three months from the date of the creation of the trust or

endowment; or

(b) a trustee or administrator furnishes any statement, return or information

to the Board, which he knows or has reason to believe to be false, misleading, untrue or

incorrect in any material particular,

he shall be punishable with imprisonment for a term which may extend to six months and

also with fine which may extend to fifteen thousand rupees.

(3) No Court shall take cognizance of an offence punishable under this Act save

upon a complaint made by the Board or an officer duly authorized by the Board in this

behalf.

(4) No Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate

of the First Class shall try any offence punishable under this Act.

Penalties.

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Tamil nadu government gazette extraordinary

(5) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,

the fine imposed under sub-section (1), when realized, shall be credited to the fund specified

under section 70.

(6) In every case where offender is convicted of an offence punishable under

sub-section (1) and sentenced to a fine, the Court shall also impose such term of

imprisonment in default of payment of fine as is authorized by law for such default.

Central Act 2 of

1973.

57. When there is a vacancy in the office of the trustee and administrator of a trust and

endowment and there is no one to be appointed under the terms of the deed of the trust and

endowment, or where the right of any person to act as trustee or adminstrator is disputed,

the Board may appoint any person belonging to Vanniyakula Kshatriya community to act as

Administrative Officer for such period and on such condition as may be prescribed.

Removal of

trustee and

administrator.

58. (1) Notwithstanding anything contained in any other law or the deed of trust or

endowment, the Board may remove a trustee or administrator from his office if such trustee

or administrator-

(a) has been convicted for an offence punishable under section 56; or

(b) has been convicted of any offence of criminal breach of trust or any other

offence involving moral turpitude, and such conviction has not been reversed and he has

not been granted full pardon with respect to such offence; or

infirmity which would render him unfit to perform the functions and discharge the duties of

a trustee; or

(d) is an undischarged insolvent; or

(e) is proved to be addicted to drinking liquor or other spirituous preparations,

or is addicted to the taking of any narcotic drugs; or

(f) is employed as a paid legal practitioner on behalf of, or against, the trust

or endowment; or

(g) has failed, without reasonable excuse, to maintain regular accounts

for two consecutive years or has failed to submit, in two consecutive years, the yearly

statement of accounts, as required by sub-section (2) of section 39; or

(h) is interested, directly or indirectly, in a subsisting lease in respect of the

property of the trust or endowment, or in any contract made with, or any work being done

for the trust or endowment, or is in arrears in respect of any sum due by him to such trust or

endowment; or

(i) continuously neglects his duties or commits any misfeasance,

malfeasance, misapplication of funds or breach of trust in relation to the trust or endowment,

or in respect of any money or property of trust or endowment; or

(j) willfully and persistently disobeys the lawful orders made by the

Government, Board under any provision of this Act or rule or order made thereunder; or

(k) misappropriates or fraudulently deals with the property of the trust or

endowment.

(2) The removal of a person from the office of the trustee shall not affect his personal

rights, if any, in respect of the property of the trust or endowment either as a beneficiary or

in any other capacity.

(3) No action shall be taken by the Board under sub-section (1), unless it has held an

inquiry into the matter in a prescribed manner and the decision has been taken by a majority

of not less than two-third of the members of the Board.

(4) A trustee, who is aggrieved by an order passed under any of the clauses (c) to (i)

of sub-section (1), may, within one month from the date of the receipt by him of the order,

appeal against the order to the Court and the decision of the Court on such appeal shall

be final.

(5) Where any inquiry under sub-section (3) is proposed, or commenced, against any

administrator or trustee, the Board may, if it is of opinion that it is necessary so to do in the

interest of the trust or endowment, by an order suspend such trustee or administrator until

the conclusion of the inquiry:

Power to

appoint

Administrative

Officer in

certain

cases.

Tamil nadu government gazette extraordinary

263

Central Act V

of 1908.

Provided that no suspension for a period exceeding ten days shall be made except

after giving the trustee or administrator a reasonable opportunity of being heard against the

proposed action.

(6) Where any appeal is filed by the trustee to the Court under sub-section (4), the

Board may make an application to the Court for the appointment of a receiver to manage

the trust or endowment, pending the decision of the appeal, and where such an application

is made, the Court shall, notwithstanding anything contained in the Code of Civil procedure,

1908, appoint a suitable person as receiver to manage the trust or endowment, and direct

the receiver so appointed to ensure that the customary rights of the trustee and of the trust

or endowment, are safeguarded.

(7) Where a trustee or administrator has been removed from his office under

sub-section (1), the Board may, by order, direct the trustee or administrator to deliver

possession of the property of trust or endowment, to the Board or any officer duly authorized

in this behalf or to any person or committee appointed to act as the trustee of the trust or

administrator of the endowment.

(8) A trustee or administrator of a trust or endowment removed from his office

under this section shall not be eligible for re-appointment as a trustee of the trust or

administrator of an endowment, for a period of five years from the date of such removal.

59. (1) Where no suitable person is available for appointment as a trustee or administrator

of a trust or endowment, or where the Board is satisfied, for reasons to be recorded by it in

writing, that the filling up of the vacancy in the office of trustee or administrator is prejudicial

to the interests of the trust or endowment, the Board may, by notification, assume direct

management of the trust or endowment, for such period or periods, not exceeding five

years in the aggregate, as may be specified in the notification.

(2) The Government, may, on its own motion or on the application of any person

interested in the trust or endowment, call for the records of any case for the purpose of

satisfying itself as to the correctness, legality or propriety of the notification issued by the

Board under sub-section (1) and pass such orders as it may think fit and the orders so

made by the Government shall be final and shall be published in the manner specified in

sub-section (1).

(3) As soon as possible after the close of every financial year, the Board shall

send a detailed report to the Government in regard to every trust and endowment, under its

direct management, giving therein-

(i) the details of the income of the trust and endowment for the year

immediately preceding the year under report;

(ii) the steps taken to improve the management and income of the trust and

endowment;

(iii) the period during which the trust and endowment has been under

the direct management of the Board and explaining the reasons as to why it has not

been possible to entrust the management of the trust and endowment to the trustee or

administrator or any committee of management during the year; and

(iv) such other matters as may be prescribed.

(4) The Government shall examine the report submitted to it under sub-section (3),

and after such examination issue such directions or instructions to the Board as it may think

fit and the Board shall comply with such directions or instructions on receipt thereof.

Assumption

of direct

management

of certain

trust and

endowment,

by the Board.

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Tamil nadu government gazette extraordinary

60. (1) Whenever the supervision or management of trust or endowment is vested in

any committee appointed by the trust deed, then, notwithstanding anything contained in this

Act, such committee shall continue to function until it is superseded by the Board or until the

expiry of its term as may be specified by the trust deed, whichever is earlier:

Provided that such committee shall function under the direction, control and supervision

of the Board and abide by such directions as the Board may issue, from time to time:

Provided further that if the Board is satisfied that any scheme for the management of

a trust or endowment, by a committee is inconsistent with any provision of this Act or of any

rule made thereunder or with the directions of the trust deed, it may, at any time, modify the

scheme in such manner as may be necessary to bring it in conformity with the directions of

the trust deed, or of the provisions of this Act and the rules made thereunder.

(2) Notwithstanding anything contained in this Act and in the deed of the trust

or endowment, the Board may, if it is satisfied for reason to be recorded in writing, that

a committee, referred to in sub-section (1) is not functioning properly and satisfactorily,

or that the trust or endowment, is being mismanaged and that in the interest of its proper

management, it is necessary so to do, by an order, supersede such committee, and, on

such supersession, any direction of trust deed, in so far as it relates to the constitution of

the committee, shall cease to have any force:

Provided that the Board shall, before making any order superseding any committee,

issue a notice setting forth therein the reasons for the proposed action and calling upon

the committee to show cause within such time, not being less than one month, as may be

specified in the notice, as to why such action shall not be taken.

(3) Every order made by the Board under sub-section (2) shall be published in the

prescribed manner and on such publication shall be binding on the trustee or administrator

and all persons having any interest in the trust or endowment.

(4) Any order made by the Board under sub-section (2) shall be final:

Provided that any person aggrieved by the order made under sub-section (2) may,

within sixty days from the date of the order, appeal to the Court.

(5) The Board shall, whenever it supersedes any committee under sub-section (2),

constitute a new committee of management simultaneously with the order made by it under

sub-section (2).

(6) Notwithstanding anything contained in the foregoing sub-sections, the Board

may, instead of superseding any committee under sub-section (2), remove any member

thereof if it is satisfied that such member has abused his position as such member or had

knowingly acted in a manner prejudicial to the interests of the trust or endowment, and

every such order for the removal of any member shall be served upon him by registered

post:

Provided that no order for the removal of the member shall be made unless he has

been given a reasonable opportunity of showing cause against the proposed action:

Provided further that any member aggrieved by any order for his removal from the

membership of the committee may, within a period of thirty days from the date of service

of the order on him, prefer an appeal against such order to the Court and the Court may,

after giving a reasonable opportunity to the appellant and the Board of being heard, confirm,

modify or reverse the order made by the Board and the order made by the Court in such

appeal shall be final.

Supervision and

supersession

of committee

management.

Tamil nadu government gazette extraordinary

265

61. (1) Whenever the Board is satisfied, whether on its own motion or on the application

of not less than five persons interested in any trust or endowment, that it is necessary or

desirable to frame a scheme for the proper administration of the trust or endowment, it

may, by an order, frame such scheme for the administration of the trust or endowment after

consultation with the trustee or administrator or the applicant in the prescribed manner.

(2) A scheme framed under sub-section (1) may provide for the removal of the

trustee and administrator of the trust and endowment, holding office as such immediately

before the date on which the scheme comes into force:

Provided that where any such scheme provides for the removal of any hereditary

trustee, the scheme shall also provide for the appointment of the person next in hereditary

succession to the trustees removed, as one of the members of the committee appointed for

the proper administration of the trust or endowment.

(3) Every order made under sub-section (2) shall be published in the prescribed

manner. Such publication shall be final and binding on the trustee and administrator and all

persons interested in the trust or endowment:

Provided that any person aggrieved by an order made under this section may, within

sixty days from the date of the order, prefer an appeal to the Court and after hearing such

appeal, the Court may confirm, reverse or modify the order:

Provided further that the Court shall have no power to stay the operation of the order

made under this section.

(4) The Board may, at any time by an order, whether made before or after the

scheme has come into force, cancel or modify the scheme.

(5) Pending the framing of the scheme for the proper administration of the trust

or endowment, the Board may appoint an Administrative Officer to perform all or any of the

functions of the trustee or administrator thereof and to exercise the powers, and perform the

duties, of such trustee or administrator.

Power of Board

to frame

scheme for

administration

of trust or

endowment.

62. Any person interested in a trust or endowment, may make an application to the

Board supported by an affidavit to institute an inquiry relating to the administration of the

trust or endowment, and if the Board is satisfied that there are reasonable grounds for

believing that the affairs of the trust or endowment, are being mismanaged, it shall take

such action thereon as it thinks fit.

Inquiry

relating to

administration

of trust and

endowment

63. (1) The Board may, either on an application received under section 62, or on its

own motion,-

(a) hold an inquiry in such manner as may be prescribed; or

(b) authorize any member of the Board in this behalf to hold an inquiry into any

matter relating to a trust or endowment, and take such action as it thinks fit.

Manner of

holding

inquiry

Central Act V

of 1908.

(2) For the purposes of an inquiry under this section, the Board or any member of

the Board authorized by it in this behalf, shall have the same powers as are vested in a Civil

Court under the Code of Civil Procedure, 1908 for enforcing the attendance of witnesses

and production of documents.

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Tamil nadu government gazette extraordinary

CHAPTER-XI.

POWER OF the GOVERNMENT TO APPOINT OR REMOVE A TRUSTEE OR

ADMINISTRATOR IN CONSuLTATION WITH BOARD.

Power of

appointment

and removal

of trustee or

administrator

when to be

exercised

by the

Government.

64. Where a deed of trust or endowment, or any decree or order of a Court or any

scheme of management of any trust or endowment provides that a Court or any authority

other than a Board may appoint or remove a trustee or administrator or settle or modify such

scheme of management or otherwise exercise superintendence over trust or endowment,

then, notwithstanding anything contained in such deed of trust or endowment, decree, order

or scheme, such powers aforesaid shall be exercisable by the Government:

Provided that where a Board has been established, the Government shall consult

the Board before exercising such powers.

CHAPTER-XII.

FINANCE OF THE BOARD.

Grants by the

Government

Annual contri-

bution

payable to

Board.

65. The Government may pay to the Board by way of grants such sums of money as

the Government may think fit.

66. (1) The trustee or administrator of every trust or endowment, the net annual income

of which is not less than ten thousand rupees, shall pay annually, out of the net annual

income derived by the trust or endowment, such contributions, not exceeding ten per cent

of such annual income, as may be prescribed, to the Board for the services rendered by

such Board to the trust or endowment.

Explanation I. - For the purposes of this Act, “net annual income” shall mean the

gross income of the trust or endowment, from all sources, including donations which do not

amount to contribution to the corpus of the trust or endowment in a year, after deducting

therefrom the following, namely:-

(i) the land revenue paid by it to the Government;

(ii) the charges, taxes and licence fees, paid by it;

(iii) expenditure incurred for all or any of the following purposes, namely:-

(a) maintenance of, or repairs to, irrigation works, which shall not include the

capital cost of irrigation;

(b) seeds or seedlings;

(d) purchase and maintenance of agricultural implements;

(e) purchase and maintenance of cattle for cultivation;

(f) wages for ploughing, watering, sowing, transplanting, harvesting,

threshing and other agricultural operations:

Provided that the total deduction in respect of all expenditure incurred under this

clause shall not exceed twenty-five per cent of the income derived from lands belonging to

the trust or endowment;

(iv) expenditure on sundry repairs to rented buildings, not exceeding ten per cent

of the annual rent derived therefrom, or the actual expenditure, whichever is less;

Tamil nadu government gazette extraordinary

267

(v) sale proceeds of immovable properties or rights relating to, or arising out

of, immovable properties, if such proceeds are re-invested to earn income for the trust or

endowment:

Provided that the following items of receipts shall not be deemed to be income for the

purposes of this section, namely:-

(a) advances and deposits recovered and loans taken or recovered;

(b) deposits made as security by employees, lessees or contractors and

other deposits, if any;

(d) amounts recovered towards costs awarded by Courts;

(e) donations in cash or kind made by the donors as contributions to the

corpus of the trust and endowment:

Provided that the interest on income, if any, accruing from such donations shall be

taken into account in calculating the gross annual income;

(f) voluntary contributions received in cash or kind for a specified service to

be performed by the trust and endowment, and expended on such service;

(g) audit recoveries.

Explanation II. - In determining the net annual income for the purposes of this section,

only the net profit derived by any trust or endowment, from its remunerative undertaking, if

any, shall be taken as income, and in respect of its non-remunerative undertakings, such

as, schools, colleges, hospitals, poor homes, orphanages or any other similar institutions,

the grants given by the Government or any local authority or donations received from the

public or fees collected from the pupils of educational institutions shall not be taken as

income.

(2) The trustee or administrator of a trust or endowment, may realize the contributions

payable by him under sub-section (1) from the various persons entitled to receive any

pecuniary or other material benefit from the trust or endowment, but the sum realizable from

any one of such persons shall not exceed such amount as shall bear to the total contribution

payable the same proportion, as the value of the benefits receivable by such person bears

to the entire net annual income of the trust or endowment:

Provided that if there is any income of the trust or endowment, available in excess of

the amount payable as dues under this Act, other than the contribution under sub-section (1),

and in excess of the amount payable under the deed of such trust and endowment, the

contribution shall be paid out of such income.

(3) The contribution payable under sub-section (1) in respect of a trust or

endowment, shall, subject to the prior payment of any dues to the Government or any local

authority or of any other statutory first charge on the property of trust or endowment, or the

income thereof and shall be recoverable, on a certificate issued by the Board after giving

the trustee or administrator concerned an opportunity of being heard, as an arrear of land

revenue.

(4) If a trustee and administrator realizes the income of the trust or endowment and

refuses to pay or does not pay such contribution he shall also be personally liable for such

contribution which may be realized from his person or property in the manner aforesaid.

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Tamil nadu government gazette extraordinary

(5) Where, after the commencement of this Act, the trustee of a trust or

administrator of the endowment, fails to submit a return of the net annual income of the trust

or endowment, within the time specified therefor or submits a return which, in the opinion of

the Chief Administrative Officer is incorrect or false in any material particular, or which does

not comply with the provisions of this Act or any rule or order made thereunder, the Chief

Administrative Officer may assess the net annual income of the trust and endowment, to

the best of his judgment or revise the net annual income as shown in the return submitted

by the trustee and administrator and the net annual income as so assessed or revised shall

be deemed to be the net annual income of the trust or endowment, for the purposes of this

section:

Provided that no assessment of net annual income or revision of return submitted

by trustee or administrator shall be made except after giving a notice to the trustee or

administrator calling upon him to show cause, within the time specified in the notice,

as to why such assessment or revision of the return shall not be made and every such

assessment or revision shall be made after considering the reply, if any, given by the trustee

or administrator.

(6) Any trustee or administrator who is aggrieved by the assessment or revision

made by the Chief Administrative Officer under sub-section (5) may prefer an appeal to the

Board within thirty days from the date of the receipt of the assessment or revision of return

and the Board may, after giving the appellant a reasonable opportunity of being heard,

confirm, reverse or modify the assessment or revision of the return and the decision of the

Board thereon shall be final.

(7) If, for any reason, the contribution or any portion thereof leviable under this

section has escaped assessment in any year, whether before or after the commencement of

this Act, the Chief Administrative Officer may, within five years from the last date of the year

to which such escaped assessment relates serve upon the trustee or administrator a notice

assessing him with the contribution or portion thereof which had escaped assessment, and

demanding payment thereof within thirty days from the date of service of such notice, and

the provisions of this Act and the rules made thereunder, shall, as far as may be, apply as

if the assessment were made under this Act, in the first instance.

Power of Chief

Administrative

Officer to direct

any person to

make

payments.

67. (1) Notwithstanding anything contained in any other law for the time being in force,

the Chief Administrative Officer, if he is satisfied that it is necessary and expedient so to

do, make an order directing any person with whom any money belonging to a trust or

endowment, is deposited, to pay the contribution, leviable under section 66, out of such

money, as may be standing to the credit of the trust and endowment, by way of deposit, or

in any other manner and on receipt of such orders, such person, shall, where no appeal

has been preferred under sub-section (3), comply with such orders or where an appeal has

been preferred under sub-section (3), shall comply with the orders made by the Court on

such appeal.

(2) Every payment made by a person in pursuance of any order made under sub-

section (1), shall operate as a full discharge of the liability of such person in relation to the

sum so paid.

(3) Any person who is ordered under sub-section (1) to make any payment may,

within thirty days from the date of the order, prefer an appeal against such order to the Court

and the decision of the Court on such appeal shall be final.

(4) Every person who fails, without any reasonable excuse to comply with the

order made under sub-section (1) or, as the case may be, under sub-section (3), shall be

punishable with imprisonment for a term which may extend to six months or with fine which

may extend to eight thousand rupees, or with both.

Tamil nadu government gazette extraordinary

269

68. (1) For the purpose of giving effect to the provisions of this Act, the Board may, with

the prior sanction of the Government, borrow such sum of money and on such terms and

conditions as the Government may determine.

(2) The Board shall repay the money borrowed, together with any interest or costs

due in respect thereof, according to the terms and conditions of the loan.

Power of

Board to

borrow.

69. (1) No trustee, administrator or other person in charge of the administration of

a trust or endowment, shall lend any money belonging to the trust or endowment, or any

property of trust or endowment, or borrow any money for the purposes of the trust or

endowment, except with the prior sanction of the Board.

(2) The Board may, while according sanction, specify any terms and conditions

subject to which the person referred to in sub-section (1), is authorized by him to lend or

borrow any money or lend any other property of trust or endowment.

(3) Where any money is lent or borrowed, or other property of trust or endowment,

is lent in contravention of the provisions of this section, it shall be lawful for the Chief

Administrative Officer,-

(i) to recover an amount equal to the amount which has been so lent or

borrowed, together with interest due thereon, from the personal funds of the person by

whom such amount was lent or borrowed;

(ii) to recover the possession of the property of trust or endowment, lent

in contravention of the provisions of this Act, from the person to whom it was lent, or from

person who claim title to such property through the person to whom such property was lent.

. Trustee and

administrator

not to lend

or borrow

moneys

without

sanction.

70. (1) All moneys received or realized by the Board under this Act and all other

moneys received as donations, benefactions or grants by the Board shall form a fund to be

called the Vanniyakula Kshatriya Public Charitable Trusts and Endowments (Protection and

Maintenance) Fund and vest with the Board.

(2) All moneys received by the Board, as donations, benefactions and grants for

the purposes of the Board shall be deposited and accounted for.

(3) The fund specified under sub-section (1) of this section shall be applied to,—

(a) repayment of any loan borrowed by the Board and payment of interest

thereon;

(b) payment of the cost of audit of the Fund and the accounts of trust and

endowment;

Board;

(d) payment of travelling allowances to the Chairperson, members of the

Board and officers and staff of the Board;

(e) payment of all expenses incurred by the Board in the performance of the

duties imposed, and the exercise of the powers conferred by, or under this Act;

(f) payment of all expenses incurred by the Board for the discharge of any

obligation imposed on it by or under any law for the time being in force.

(4) If any balance remains after meeting the expenditure referred to in sub-section

(4), the Board may use any portion of such balance for the preservation and protection of

the properties of trust and endowment, or for such other purpose as it may deem fit.

Vanniyakula

Kshatriya

Public

Charitable

Trusts and

Endowments

(Protection

and

Maintenance)

Fund.

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Tamil nadu government gazette extraordinary

CHAPTER-XIII.

BUDGET, ACCOUNTS AND AUDIT OF THE BOARD.

Budget of

Board.

71. (1) The Board shall, in every year, prepare, in such form and at such time as may

be prescribed, a budget for the next financial year showing the estimated receipts and

expenditure during that financial year and forward a copy of the same to the Government.

(2) On receipt of the budget forwarded to it under sub-section (1), the Government

shall examine the same and suggest such alterations, corrections, or modifications

to be made therein as it may think fit and forward such suggestion to the Board for its

consideration.

(3) On receipt of the suggestions from the Government, the Board may make

written representations to the Government with regard to the alterations, corrections or

modifications suggested by the Government and the Government shall, after considering

such representations, communicate, within a period of three weeks from the date of receipt

thereof, to the Board its final decision in relation to the matter and the decision of the

Government shall be final.

(4) On receipt of the decision of the Government under sub-section (3), the Board

shall incorporate in its budget all the alterations, corrections, modifications finally suggested

by the Government and the budget as so altered, corrected or modified, shall be the budget

which shall be passed by the Board.

Accounts of

Board.

72. The Board shall cause to be maintained such books of account and other books in

relation to its accounts in such form and in such manner as may be prescribed.

Audit of

accounts of

Board.

73. (1) The accounts of the Board shall be audited and examined annually by such

auditor as may be appointed by the Government.

(2) The auditor shall submit his report to the Government and the report of the

auditor shall, among other things, specify whether the accounts of every trust or endowment,

under the direct management of the Board have been kept separately and whether such

accounts have been audited annually by the State Examiner of Local Funds and shall also

specify all cases of irregular, illegal or improper expenditure or of failure to recover money

or other property caused by neglect or misconduct and any other matter which the auditor

considers it necessary to report; and the report shall also contain the name of any person

who, in the opinion of the auditor is responsible for such expenditure or failure and the

auditor shall, in every such case, certify the amount of such expenditure or loss as due from

such person.

(3) The cost of the audit shall be paid from the fund specified under section 70.

Government to

pass orders

on auditor’s

report.

74. The Government shall examine the auditor’s report and may call for the explanation

of any person in regard to any matter mentioned therein, and shall pass such orders on the

report as it thinks fit.

Dues of

Board to be

recovered

as arrears

of land

revenue.

75. (1) Every sum certified to be due from any person by an auditor in his report under

section 73, be paid by such person within thirty days after the service of a demand notice

by the Board.

(2) If such payment is not made in accordance with the provisions of sub-section (1), the

sum payable may, on a certificate issued by the Board, after giving the person concerned

an opportunity of being heard, be recovered as an arrear of land revenue.

Tamil nadu government gazette extraordinary

271

Central Act V

of 1908.

76. Notwithstanding anything contained in the Code of Civil Procedure, 1908, or in any

other law for the time being in force, where any suit or other legal proceeding is instituted

or commenced-

(i) by or on behalf of a Board-

(a) to set aside the sale of any immovable property, which is the property of

trust or endowment, in execution of a decree or order of a Court;

(b) to set aside the transfer of any immovable property, which is the property

of trust or endowment, made by the trustee or administrator thereof, whether for valuable

consideration or not, without or otherwise than in accordance with, the sanction of the

Board;

(b) or to restore possession of such property to the trustee or administrator of the concerned

trust or endowment; or

(ii) by a trustee or administrator to recover possession of immovable property,

which is the property of trust or endowment, which has been transferred by a previous

trustee or administrator whether for valuable consideration or not, without otherwise than in

accordance with the sanction of the Board, and which is in the possession of the defendant,

the Court may, on the application of the plaintiff, appoint a receiver of such property and

direct such receiver to pay from time to time to the plaintiff, out of the income of the property,

such amount as the Court may consider to be necessary for further prosecution of the suit.

Appointment

of a Receiver

in certain

cases.

77. (1) Notwithstanding anything contained in any other law for the time being in force,

no suit, appeal or other legal proceeding for the enforcement of any right on behalf of any

trust or endowment, which has not been registered in accordance with the provisions of

this Act, after its commencement, or where any such suit, appeal or other legal proceeding

had been instituted or commenced, before such commencement, no such suit, appeal or

other legal proceeding shall be continued, heard, tried or decided by any Court after such

commencement unless such trust or endowment, has been registered, in accordance with

the provisions of this Act.

(2) The provision of sub-section (1) shall apply, as far as may be, to the claim for

set-off or any other claim made on behalf of any trust or endowment, which has not been

registered in accordance with the provisions of this Act.

Bar to the

enforcement

of right on

behalf of

unregistered

trust or

endowment.

78. No suit shall be instituted against the Board in respect of any act purporting to be

done by it, in pursuance of this Act or of any rules made thereunder, until the expiration

of two months next after notice in writing has been delivered to, or left at, the office of the

Board, stating the cause of action, the name, description and place of residence of the

plaintiff and the relief which he claims and the plaint shall contain a statement that such

notice has been so delivered or left.

Notice of

suits by

parties

against

Board.

79. (1) In every suit or proceeding relating to a title to or possession of property of trust

or endowment, or the right of a trustee or administrator or beneficiary, the Court shall issue

notice to the Board at the cost of the party instituting such suit or proceeding.

(2) Whenever any property of trust or endowment, is notified for sale in execution

of a decree of a Court or for the recovery of any revenue, charges or taxes due to the

Government, any local authority, any statutory Board or any Government Company, notice

shall be given to the Board by the Court, Collector or other person under whose order the

sale is notified.

(3) In the absence of a notice under sub-section (1), any decree or order passed

in the suit or proceeding shall be deemed to be void, if the Board, within one month of its

coming to know of such suit or proceeding, applies to the Court in this behalf.

(4) In the absence of a notice under sub-section (2), the sale shall be deemed

to be void, if the Board, within one month of its coming to know of the sale, applies in this

behalf to the Court or other authority under whose order the sale was held.

Notice of

suits, etc.,

by Courts.

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Tamil nadu government gazette extraordinary

Board to

be party

to suit or

proceeding.

80. In any suit or proceeding in respect of a trust or endowment, or any property of

trust or endowment, the Board may appear and plead as a party to the suit or proceedings.

Bar to

compromise

of suit by

or against

trustee or

administrator.

81. No suit or proceeding in any Court by or against the trustee or administrator of

a trust or endowment, relating to title to property of trust and endowment, property or the

rights of the trustee or administrator shall be compromised without the prior sanction of the

Board.

CHAPTER-XIV.

MISCELLANEOUS.

Power to

supersede

Board.

82. (1) If the Government is of opinion that the Board is unable to perform or has

persistently made default in the performance of its duty, or abused its powers, or has willfully

and without sufficient cause failed to comply with any direction issued by the Government

or if the Government is satisfied on consideration of any report submitted after annual

inspection, that the Board’s continuance is likely to be injurious to the interests of the trust

or endowment, the Government may, by notification, supersede the Board for a period not

exceeding six months:

Provided that before issuing a notification under this sub-section, the Government

shall give a reasonable time to the Board to show cause why it should not be superseded

and shall consider the explanations and objections, if any, of the Board.

(2) Upon the publication of a notification under sub-section (1) superseding the

Board-

(a) all the members of the Board shall, as from the date of supersession,

vacate their offices as such members;

(b) all the powers and duties which may, by or under the provisions of this

Act, be exercised or performed by or on behalf of the Board shall, during the period of

supersession, be exercised and performed by such person or persons as the Government

may direct; and

vest in the Government.

(3) On the expiration of the period of supersession specified in the notification

issued under sub-section (1), the Government may-

(a) extend the period of supersession for such further period as it may

consider necessary; or

(b) reconstitute the Board in the manner provided in section 9.

Protection of

action taken

in good faith.

83. No suit or other legal proceeding shall lie against the Board or Chief Administrative

Officer or any other person duly appointed under this Act, in respect of anything which is in

good faith done or intended to be done under this Act

Tamil nadu government gazette extraordinary

273

Central Act

XLV of 1860

84. (1) The Chairperson and members of the Board, Survey Officer, Chief Administrative

Officer, every officers, including auditor and every other person duly appointed to discharge

any duties imposed on him by this Act or any rule or regulation or order made thereunder,

shall be deemed to be public servants within the meaning of section 21 of the Indian Penal

Code.

(2) Every trustee or administrator of a trust and endowment, whether appointed

under the provisions of this Act or under any deed of trust or endowment, every Administrative

Officer and every person holding any office in a trust or endowment, shall also be deemed

to be a public servant within the meaning of section 21 of the Indian Penal Code.

Chairperson,

Members

Survey

Officer,

Chief Admini

strative Officer

and officers

of the Board

deemed to

be public

servants.

85. Notwithstanding anything contained in any law for the time being in force, it shall

be lawful for the Board or the Chief Administrative Officer to require any person having the

custody of any record, register, report or other document relating to a trust or endowment,

or any immovable property, which is property of trust and endowment, to furnish subject to

the payment of necessary cost, copies of, or extracts from, any such record, register, report

or document and every person to whom such a requisition is made, shall furnish, as soon

as may be practicable, to the Board or Chief Administrative Officer copies or extract from

the required record, register, report or other document.

Power of

Board

and Chief

Administrative

Officer to

require copies

documents,

etc., to be

furnished.

Central Act 36

of 1963.

86. Nothing contained in the Limitation Act, 1963 shall apply to any suit for possession

of immovable property comprised in any trust or endowment, or for possession of any

interest in such property.

Central Act

36 of 1963

not to apply

for recovery

of properties

of trust or

endowment.

87. (1) The Government may make rules to carry out the purposes of this Act.

Power to

make rules.

(2) (a) All rules made under this Act shall be published in the Tamil Nadu

Government Gazette and unless they are expressed to come into force on a particular day

shall come into force on the day on which they are so published.

(b) All notifications issued under this Act, shall, unless they are expressed

to come into force on a particular day, come into force on the day on which they are so

published.

(3) Every rule made or notification or order issued under this Act shall, as soon as

possible after it is made or issued, be placed on the table of the Legislative Assembly and

if, before the expiry of the session in which it is so placed or the next session, the Assembly

makes any modification in any such rule or notification or order, or the Assembly decides

that the rule or notification or order should not be made or issued, the rule or notification or

order shall thereafter have effect only in such modified form or be of no effect, as the case

may be, so, however, that any such modification or annulment shall be without prejudice to

the validity of anything previously done under that rule or notification or order.

88. (1) The Board may, with the previous sanction of the Government, make regulations

consistent with this Act or the rules made there under, for carrying out its functions under

this Act.

Powers to

make

regulations

by the Board.

(2) No regulation or its cancellation or modification shall have effect until the

same have been approved by the Government.

(3) The Government may, by notification, rescind any regulation made under this

section and, thereupon, the regulation shall cease to have effect.

(4) All regulations made under this Act shall be published in the Tamil Nadu

Government Gazette and unless they are expressed to come into force on a particular day,

shall come into force on the day on which they are so published.

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Tamil nadu government gazette extraordinary

Power to

remove

difficulties.

89. (1) If any difficulty arises in giving effect to the provisions of this Act, the Government

may, by order, not inconsistent with the provisions of this Act, do anything which appears to

be necessary or expedient for the purpose of removing the difficulty:

Provided that no such order shall be made after the expiry of two years from the

date of commencement of this Act.

(2) The order made under this section shall be laid, as soon as may be after it is

made, before the Legislative Assembly.

Power of

Government

to give

directions.

Overriding

effect of Act

90. The Government may, from time to time, issue such directions to the Board, as

it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the

Board, to comply with such directions.

91. Save as expressly provided in this Act, any other law in force immediately before

the commencement of this Act shall cease to apply to public charitable trusts or endowments

created by persons belonging to Vanniyakula Kshatriya community,-

(i) with respect to any matter for which provision is made in this Act; and

(ii) in so far as the provisions of such other Act, is inconsistent with any of the

provisions, contained in this Act.

(By order of the Governor)

S.S. POOVALINGAM,

Secretary to Government,

Law Department.

printed and published by the Director of Stationery and printing, chennai

on behalf of the Government of Tamil Nadu