• Maharashtra Public Trust Act 1950

The recorded trustees of trust since inception did not filed any change report. Assistant Charity Commissioner under sectiion 41 A orderd the recorded trustees to hold the election. The recorded trustees are not allowing 800 members made in our tenure to vote and saying they are illegal members . What is now the status of said members and what about the membership fees collected from members ? Can we refund the same ?
Asked 1 year ago in Property Law
Religion: Sikh

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6 Answers

If members are not allowed to vote complain to charity commissioner 

 

2) seek court orders to direct trustees to permit the members to vote 

 

3) don’t refund the membership fees 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

 

Under no circumstances should you refund the membership fees 

 

I presume due process of law has been followed  in admitting members 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations


Section 41A of the Maharashtra Public Trusts Act, 1950 gives the Charity Commissioner the power to issue directions to trustees and others connected with public trusts: 

To ensure that the trust is properly administered

To ensure that the income is accounted for and used for the trust's purposes 

To prevent trust property from being wasted, damaged, alienated, wrongfully sold, removed, or disposed of.

Section 41A of the B.P.T. Act, 1950 gives ancillary or additional powers to the Charity Commissioner to suppress the apprehended mischief to the property and income of the Trust and also in the administration of the Trust. Such a power also exists on judicial side in Section 41E of the B.P.T. Act, 1950.

The members can appoint an authorized representative on their behalf to represent them and  lodge a complaint and pursue the matter legally with the charity commissioner or court of law on the basis of evidences for the payment of membership fees and seek legal intervention against the arbitrary and illegal or wrong decisions taken by the trustees in this regard. 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

The members have paid the fees for membership with the belief that they are ,members hence they should fight against the trustees for this unjustified and illegal actions against the members legally.

You may consult a local lawyer and proceed legally as suggested 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

 

- If the recorded trustees did not filed a change report and there is an order from the Assistant Charity Commissioner to hold elections, it raises questions about the validity of the recorded trustees' claims.

- Further, the legitimacy of the 800 members made during your tenure may depend on the trust’s bylaws.

- Further, if the Assistant Charity Commissioner has ordered for election, then it clear that all eligible members have the right to vote.

- Further, if the recorded trustees claim that the 800 members are illegal, then they can take legal action .

- Further, as the membership of the 800 individuals is valid as per the order of Assistant Charity Commissioner under section 41A, then  you may not need to refund the fees.

 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,

In the Present Scenario, the recorded trustees of the trust had not filed any change report since its inception. Further, the Assistant Charity Commissioner under §41A, had ordered the recorded trustees to hold election, but they are not allowing 800 members, made in your tenure, to vote, stating that they are illegal members. Hence, it is enquired as to the status of the members and on the membership fees that has been collected from them. Herein, firstly, it has been clearly stated under the relevant legislation that, trusts must follow the prescribed protocols of holding elections and membership. If the 800 members had been admitted, in compliance with the rules laid down, then their membership would be considered valid unless they have been disqualified. However, an evidence may be asked for to prove their illegality. With respect to the membership fees, if the members are valid, then there is no need of refund, however, if ruled invalid, their fees may be refunded, but in consideration of the trust's best interest. Therefore, it is suggested that, an appeal is made to the Assistant Charity Commissioner, to deal with the issue, asking for voting rights, and if still denied, they may file a petition in the civil court, seeking for enforcement of their rights.

Hope you find this answer beneficial for resolving the dispute.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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