• To convert Educational Society into Trust in Uttar Pradesh

Iam interested in converting our registered Educational society (running a university affiliated college) into a Public Trust.
please clarify:
1. Detailed procedure to do so
Asked 4 years ago in Business Law

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9 Answers

in the case of K.P. Devaiah And Anr. vs State Of Karnataka And Ors. on 5 March, 2004


The conversion of the Society as a Trust was therefore in the opinion of the Registrar illegal.

 

Writ petition was filed 

The petitioners also sought a mandamus directing the Registrar to recognise the Trust deed dated [deleted] and to declare that the Society was not in existence ever since the passing of resolution dated 20-9-1990.

4. In the objections filed on behalf of the State and the Registrar of Co-operative Societies, it was inter alia stated that the Karnataka Societies Registration Act, 1960, did not envisage conversion of a Society into a Trust in the light of the bar contained in Sections 21 and 22thereof and the decisions rendered by this Court from time to time. It was also stated that the accounts filed by the Secretary of the Society in terms of Section 13 of the Act and the correspondence made in that regard have been treated to be correspondence between the Society on the one hand and the Registrar on the other. The objections prayed for dismissal of the writ petition, as there was no room for grant of any relief to the petitioners.

The HC directed the Registrar of Societies to hold an enquiry as to whether society was validity dissolved and trust formed 

 

Ajay Sethi
Advocate, Mumbai
96986 Answers
7833 Consultations

A trust deed has to be made by you and registered with the registrar. All the details of the trust have to be stated in the deed. The trust will function as per the Indian trusts act.

Trustees have to be specified.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

Dear Sir/Ma'am, 

Firstly you will have to clarify in which state this Society is located since in every state the procedure is different. For example in Maharashtra, all societies registered under Society Registration Act automatically get registered under the Bombay Public Trust Act. 

The reason for conversion is important too as a Society can do all the acts a Trust can do. Free education and any welfare activities can be executed under the society itself. You can contact the local registration office for more details and make an informed decision. 

Anik Miu
Advocate, Bangalore
10186 Answers
120 Consultations

Approach registrar of societies in your state whether you can convert the society into trust 

Ajay Sethi
Advocate, Mumbai
96986 Answers
7833 Consultations

An educational trust specifies that trust funds are to be used for education. In the trust document, the grantor names a trustee and beneficiaries, and also states how trust money is to be used

If the trust will become operational immediately, then the grantor “funds” the trust by transferring property into it. If the trust becomes operational upon the grantor’s death, then the trust is funded when the grantor dies. When the trust becomes operational, the trustee controls trust property – and pays for the beneficiary’s education -- according to the terms of the trust.

  • Grantor – The person who transfers property into a trust.
  • Beneficiary – The person who receives a benefit from the trust.
  • Trustee – The person who controls trust property according to the terms of the trust.
  • Funding a trust – Transferring property into a trust.
  • Trust funds – The property in the trust available to the trustee to spend on a beneficiary’s education.

When you create your trust, you will need to decide who will be the trustee. While the trust is operational, the trustee controls the trust and has the power to spend trust funds according to the terms of the trust. For an educational trust, the trustee will follow the terms of the trust to pay for the beneficiaries education.

 

T Kalaiselvan
Advocate, Vellore
87188 Answers
2342 Consultations

The Trust act is applicable to the state of UP also.

Do you have a certain type of education in mind for your beneficiary? Will it be okay with you if the beneficiary uses funds from your trust to go to either trade school or medical school? Can trust funds be used to go to school part time – or online? You can use the trust to determine for what type of education the trustee can use trust funds. Of course it will be easiest for the trustee (and the beneficiary) if you are open to any kind of education. But the most important thing is that the trust gives the trustee clear guidance as what can and cannot be done with trust funds.

 

T Kalaiselvan
Advocate, Vellore
87188 Answers
2342 Consultations

Yes, the trust deed has to be made and registered in the state of Uttar Pradesh.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

Dear sir/ma'am,

If so, please go to the Charity Commissioner's Office at Worli Naka and obtain the application forms for registering ur Society as a Trust under the UP Public Trusts Act. They will give u the detailed guidance as to what documents are to be enclosed and the fees payable for the purpose.

 

Documents Required for Educational Trust in India

  1. Draft a Cover Letter.
  2. Duly Drafted Memorandum of Association.
  3. Appropriately Drafted Articles of Association.
  4. Drafted Affidavit for President (Notarised)
  5. Obtain NOC by the landlord and get Notarised.
  6. Get the Authority letter with directives.

Anik Miu
Advocate, Bangalore
10186 Answers
120 Consultations

- As per the provisions of the Societies Registration Act , a society can be amalgamate into trust. .

- However, as per Karnataka High court, the properties of the Society cannot be transferred to the trust and society cannot convert itself in to a trust. 

- Hence, you can approach registrar of societies in Kanpur for knowing the details . 

Mohammed Shahzad
Advocate, Delhi
14537 Answers
222 Consultations

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