1. LAW RELATING TO SOCIETIES AND TRUSTS Presented by, Ajmera Tushar R
LAW RELATING TO SOCIETIES AND TRUSTS Presented by, Ajmera Tushar R Roll no : 01

2. Introduction And Definiton Of Society
An act for the registration of literary, scientific and charitable societies whereas it is expedient the provision should be made for improving the legal condition or societies established for the promoting of literature, science, or the fine arts, or for the diffusion of useful knowledge.
Definition of society…
“ A Society is an organisation group of persons who are joined together for fulfilling any purpose relating to literature, science or charity”

3. General Concept Relating To Society
The law relating to the registration of societies is contained in the societies registration act, 1860.
A society can be registered by minimum seven individuals which may include foreigners, or registered society for the promotion of literature, science or fine arts or diffusion of useful knowledge and political education or charitable purposes etc. as specified in section 20 of the act.
Following categories of the societies can be registered under the act.

4. 1. Charitable Societies
2. Military Orphan Funds
3. Societies Established For The Promotion Of..
Science
Literature
Public Museum And Galleries Of Paintings etc.
work of art
collection of natural history
instructions of diffusion of useful knowledge

5. General Concept Relating To Registration Of Society
As per the section 1 of the society registration act, 1860 any seven person or more persons associated for any above said purpose is described in section 20 of this act.
The following documents are required to be filled the registrar of societies for registration of a society.
Memorandum of Association containing.
Name of the society.
The objects of the socity.

6. The name, address and occupation of governing body.
The place of registered office of the socity
The name, addresses and full signatures of the seven or more persons subscribing their name to the memorandum of association. Their signatures should be witnessed.
B. A copy of the rules and regulation of the society, certified to be a correct copy by not less than three of the members of the governing body.

7. C. An affidavit made by the president or secretary duly affirmed before oath commissioner or notary public or magistrate of first class declaring that the procedure relating to the registration of societies is complied with. D. covering latter requesting for registration stating various documents annexed to it addressed to the registering authority and signed by all the subscriber to the memorandum or by a person authority by all of the them. 3. Registration fee of Rs. 50/- or such fee as may be specified by

8. the state government is required to be paid in cash or by demand draft along with filling of above documents. 4. The registering authority if satisfied on the compliance of the provisions of the act and correctness of the documents, the said authority shall certify in his/her hand that the society is registered under the act and will issue certificate of registration . 5. On registration, the society becomes a legal entity of a judicial person apart from its members.

9. Property Of Societies
Section 5 of the societies registration act provides for the vesting of property of the society it provides that the property, movable and immovable, belonging to a society registered under this act, if not vested in trustee, shall be deemed to be vested, for the time being, in the governing body of such society, and in all proceedings, civil and criminal, may be described as property to the governing body of such society by their title.
The society registered under the society registration act, 1860 becomes a legal entity and registered society is capable to hold and own its property in its own name.

10. Suits By And Against Societies
A society registered under the act is a legal entity. As per section 6 of the act, society may sue and be sued in the name of the president, chairman or principle, secretary or trustee as determined by the rules and regulation of the society. In case there is no such determination prescribed in the rules, the suit may be filed in the name of such person as appointed by the governing body for the occasion.
If no person is nominated by the governing body on an application made then a person having a claim against society may sue the president or chairman or secretary or trustee.
Section 7

11. Enforcement Of Judgment Against Society
Section 8 of the act provides that if any judgment is delivered against the society, it can be enforced against the society and not against the person in whose name the suite was bought against. It is the property of the society only against which the judgment is enforced although the judgment is named against the person of office on behalf of the society. It will not be enforced against the person or office or his property.
the application for execution shall set forth the judgment, the fact of the party against whom it shall have been recovered having sued or having been sued, as the case may be, on behalf of the society only and it’s property.

12. Dissolution Of Societies
Section 13 of the act contains the provisions relating to dissolution of the society. Dissolution of a society becomes necessary where the objects for which it is formed, has been fulfilled or where the purpose for which it is formed, have been irrelevant, invalid. Registrar has to power to order of dissolution of the society if society is engaged in any activities which are unlawful or fraudulent or against the public policy or the society is continuously violating the provision of the act or rules and regulation.
The following steps should be followed as per section 13 for the dissolution of society.

13. The submit the proposal by governing body to the members of the society for dissolution of the society or that proposal may be put forward by the members who are not less than 3/5 of the total number of members of the society.
The governing body shall convene a special meeting of the members of the society by giving a notice in writing accordance rules and regulations…
In special meeting of the members, the governing body shall propose a resolution for dissolution of the society which must be approved by 3/5th of the members present and voting at the meeting.

14. The society, thereafter, shall be dissolved forthwith or at later time as determined by the members by a resolution passed with 3/5th majority.
The resolution shall also provide for the disposal of property and settlement of claims and liabilities as per the rules and regulation of the society.
If the rules and regulations of the society do not provide for the manner of disposal of properties and settlements of claims and liabilities then the governing body shall determine such manner.
It is to be noted that where any government is a member of the society or has contributed to the funds of the society or is otherwise interested their in, the society cannot be dissolved without prior consent of such government.

15. If upon the dissolution of any society registered under this act there shall remain, after the satisfaction of all its debts and liabilities any property whatsoever, the same shall not be paid to or distributed among the members of the said society or any of them, but shall be given to some other society, to be determine by the votes of not less than 3/5th of the members present personally or by proxy at the time of dissolution, or in default thereof, by such court as aforesaid.

16. Introduction Of Trust
The word “trust” derived from the latine world “opus” that means “on behalf of”.
In 14 century according to Franciscan Priest rules they could not obtain individual or in group, a piece of land.
Although they must have land for the purpose of resident and that problem solved by the person who possess the land behalf of them. That is the trick can be used for the solve the problem.

17. SARDAR VALLABHBHAI PATEL RASTRIYA EKTA TRUST

18. SVPRET is registered as a trust and a society under the Bombay trust act and Bombay society act, and is the main body responsible for planning and development of the project.

19. The objectives.
SVPRET is governed by a governing council chaired by the honourable chief minister of the state of Gujarat. Members of the board include the chief secretary of the state government, and other senior government officers.
SVPRET is entitled to receive grant, donation, contribution, subscription, loan or contingency in cash or kind, either in India or foreign currency and has also been accorded exemption under section 80G of the Income Tax Act.

20. General Concept Relating To Trust
Trust is general world implying the “Obligation towards others” when someone hold cash or movable or immovable property behalf of others.
Definition of Trust:
"trust" is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner”

21. “ A legal relationship in which author assigns property to the trustee for the benefit of the beneficiary”
“ Trust is a legal entity, created by one party in which the second party has the right to hold the assets of the first party for the benefit of the third party”
In which….
Author means : The person who reposes or declares the confidence is called the “author of the trust”
Trustee means: The person who accepts the confidence is called the “Trustee”
Beneficiary means : The person for whose benefit the confidence is accepted is called the “beneficiary”

22. Creation Of Trust
Sec.4. Lawful purpose.-A trust may be created for any lawful purpose. The purpose of a trust is lawful unless it is
forbidden by law, or
is of such a nature that, if permitted, it would defeat the provisions of any law, or
is fraudulent, or
involves or implies injury to the person or property of another.
Every trust of which the purpose is unlawful is void. And where a trust is created for two purposes, of which one is lawful and the other unlawful, and the two purpose cannot be separated, the whole trust is void.

23. Sec.5. Trust of immoveable property: No trust in relation to immoveable property is valid unless declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or by the will of the author of the trust or of the trustee.
Trust of moveable property: No trust in relation to moveable property is valid unless declared as aforesaid, or unless the ownership of the property is transferred to the trustee.
Sec. 6. Creation of trust: subject of the provisions of section 5, trust is created when the author of the trust indicates with reasonable certainty by words

24. Acts
An intention on his part to create thereby a trust,
The purpose of the trust,
The beneficiary, and
The trust property
The trustee.
Sec. 7. Who may create trusts: a trust may be created
1. by every person competent to contract.
2. with the permission of a principal civil court of original jurisdiction, by or on behalf of a minor.

25. but subject in each case to the law for the time being in force as to the circumstances and extent in and to which the author of the trust may dispose of the trust property.
Sec. 8. Subject of trust: the subject matter of a trust must be property transferable to the beneficiary.
it must not be merely beneficial interest under a subsisting trust.
Sec. 9. Who may be beneficiary: disclaimer by beneficiary every person capable of holding property may be a beneficiary.
a proposed beneficiary may renounce his interest under the trust by disclaimer addressed to the trustee, or by setting up, with notice of the trust, a claim inconsistent therewith.

26. Sec. 10. Who may be trustee: every person capable of holding property may be a trustee, but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to conduct.
No one bound to accept trust.

27. Duties And Liability Of Trustee
Sec.11: Trustee to execute trust: The trustee is bound to fulfil the purpose of the trust, and to obey the directions of the author of the trust given at the time of its creation, except as modified by the consent of all the beneficiaries being competent to contract.
Sec. 12 : Trustee to inform himself of state of trust property: trustee is bound to acquaint himself, as soon as possible, with the nature and circumstances of the trust-property; to obtain, where necessary, a transfer of the trust-property to himself; and (subject to the provisions of the instrument of trust) to get in trust-moneys invested on insufficient or hazardous security.

28. Sec.13 : Trustee to protect title to trust property: A trustee is bound to maintain and defend all such suits, and (subject to the provisions of the instrument of trust) to take such other steps as, regard being had to the nature and amount or value of the trust property, may be reasonably requisite for the preservation of the trust-property and the assertion or protection of the title thereto.
Sec.14 : Trustee not to set up title adverse to beneficiary : The trustee must not for himself or another set up or aid any title to the trust-property adverse to the interest of the beneficiary.

29. Sec.15 : Care required from trustee :A trustee is bound to deal with the trust-property as carefully as a man of ordinary prudence would deal with such property if it were his own; and, in the absence of a contract to the contrary, a trustee so dealing is not responsible for the loss, destruction or deterioration of the trust-property.
Sec.16 : Conversion of perishable property : Where the trust is created for the benefit of several persons in succession, and the trust property is of a wasting nature or a future or reversionary interest, the trustee is bound, unless an intention to the contrary may be inferred from the instrument of trust.

30. Sec. 17 : Trustee to be impartial: Where there are more beneficiaries than one, the trustee is bound to be impartial, and must not execute the trust for the advantages of one at the expense of another.
where the trustee has a discretionary power, nothing in this section shall be deemed to authorize the court to control the exercise reasonably and in good faith of such discretion.
Sec. 18 : Trustee to prevent waste : Where the trust is created for the benefit of several persons in succession and one of them is in possession of the trust-property, if he commits, or threatens to commit, any act which is destructive or permanently injurious thereto, the trustee is bound to take measures to prevent such act.

31. Sec. 19 : Accounts and information: A trustee is bound (a) to keep clear and accurate accounts of the trust-property, and (b), at all reasonable times, at the request of the beneficiary, to furnish him with full and accurate information as to the amount and state of the trust-property.
Sec. 20 : Investment of trust-money :Where the trust property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee is bound (subject to any direction contained in the instrument of trust) to invest the money on the following securities, and on no others:-

32. Sec. 21 : Mortgage of land pledged to government
Sec. 22 : Sale by trustee directed to sell within specified time.
Sec. 23 : Liability for breach of trust.
Sec. 24 : No set off a allowed to trustee.
Sec. 25 and 26 : Non liability for predecessor’s default.
Sec. 27 : Several liability of co trustees.
Sec. 28 : Non liability of trustee paying without notice of transfer by beneficiary.
Sec. 29 : Liability of trustee where beneficiary's interest is forfeited to the government.
Sec. 30 : Indemnity of trustees.

33. Rights And Power Of The Trustee
Sec.31. Right to title-deed : A trustee is entitled to have in his possession the instrument of trust and all the documents of title (if any) relating solely to the trust-property.
Sec.32. Right to reimbursement of expenses : Every trustee may reimburse himself, or pay or discharge out of the trust-property, all expenses properly incurred in or about the execution of the trust, or the realization, preservation, or benefit of the trust-property, or the protection or support of the beneficiary.

34. Sec. 33 : Right to indemnity from gainer by breach of trust :
A person other than a trustee who has gained an advantage from a breach of trust must indemnify the trustee to the extent of the amount actually received by such person under the breach; and where he is a beneficiary the trustee has a charge on his interest for such amount.
Sec. 34 :Right to apply to Court for opinion in management of trust property:
Any trustee may, without instituting a suit, apply by petition to a principal Civil Court of original jurisdiction for its opinion, advice or direction on any present questions respecting the management or administration of the trust-property other than questions of detail, difficulty or importance, not proper in the opinion of the Court for summary disposal.

35. Sec.35 : Right to settlement of accounts : When the duties of a trustee, as such, are completed, he is entitled to have the accounts of his administration of the trust-property examined and settled; and, where nothing is due to the beneficiary under the trust, to an acknowledgment in writing to that effect.
Sec. 36 : General authority of trustee: In addition to the powers expressly conferred by this Act and by the instrument of trust, and subject to the restrictions, if any, contained in such instrument, and to the provisions of section 17, a trustee may do all acts which are reasonable and proper for the realization, protection or benefit of the trust property, and for the protection or support of a beneficiary who is not competent to contract.

36. Sec. 37 : Power to sell in lots, and either by public auction or private contract : Where the trustee is empowered to sell any trust property, he may sell the same subject to prior charges or not, and either together or in lots, by public auction or private contract, and either at one time or at several times, unless the instrument of trust otherwise directs.
Sec.38 : Power to sell under special conditions. Power to buy-in and re-sell : The trustee making any such sale may insert such reasonable stipulations either as to title or evidence of title, or otherwise, in any conditions of sale or contract for sale, as he thinks fit; and may also buy-in the property or any part thereof at any sale by auction, and rescind or vary any contract for sale.

37. Sec. 39 :Power to convey.-For the purpose of completing any such sale, the trustee shall have power to convey or otherwise dispose of the property sold in such manner as may be necessary.
Sec. 40 :Power to vary investments.-A trustee may, at his discretion, call in any trust-property invested in any security and invest the same on any of the securities mentioned or referred to in section 20, and from time to time vary any such investments for others of the same nature.
Sec. 42: Power to give receipts.
Sec. 43: Power to compound etc.
Sec. 44. Power to several trustees of whom one disclaims or dies.

38. Disabilities Of Trustees
Sec. 46 : Trustee cannot renounce after acceptance: A trustee who has accepted the trust cannot afterwards renounce it except
(1) with the permission of a principal Civil Court of original jurisdiction, or
(2) if the beneficiary is competent to contract, with his consent, or
(3) by virtue of a special power in the instrument of trust.
Sec. 47: Trustee cannot delegate :A trustee cannot delegate his office or any of his duties either to a co-trustee or to a stranger, unless
(1) the instrument of trust so provides, or

39. (2) the delegation is in the regular course of business,
(3) the delegation is necessary, or
(4) the beneficiary, being competent to contract, consents to the delegation.
Sec. 48 : Co-trustees cannot act singly : When there are more trustees than one, all must join in the execution of the trust, except where the instrument of trust otherwise provides.
Sec. 49 : Control of discretionary power : Where a discretionary power conferred on a trustee is not exercised reasonably and in good faith, such power may be controlled by a principal Civil Court of original jurisdiction.
Sec. 50 : Trustee may not charge for services :In the absence

40. of express directions to the contrary contained in the instrument of trust or of a contract to the contrary entered into with the beneficiary or the Court at the time of accepting the trust, a trustee has no right to remuneration for his trouble, skill and loss of time in executing the trust.
Sec. 51: Trustee may not use trust-property for his own profit : A trustee may not use or deal with the trust property for his own profit or for any other purpose unconnected with the trust.
Sec. 52: Trustee for sale or his agent may not buy : No trustee whose duty it is to sell trust-property, and no agent employed by such trustee for the purpose of the sale, may, directly or indirectly.

41. Sec. 53 : Trustee may not buy beneficiary's interest without Permission :No trustee, and no person who has recently ceased to be a trustee, may, without the permission of a principal Civil Court of original jurisdiction, buy or become mortgagee or lessee of the trust property or any part thereof.
Sec. 54 : Co-trustees may not lend to one of themselves : A trustee or co-trustee whose duty it is to invest trust-money on mortgage or personal security must not invest it on a mortgage by, or on the personal security of, himself or one of his co-trustees.

42. Rights Of The Beneficiary
Sec. 55 : Rights to rents and profits :The beneficiary has, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust property.
Sec. 56 : Right to specific execution :The beneficiary is entitled to have the intention of the author of the trust specifically executed to the extent of the beneficiary's interest.
Sec. 57 : Right to inspect and take copies of instrument of trust, account, etc.: the beneficiary has a right, as against the trustee and all person claiming under him with notice of the trust, to inspect and take copies of the instrument of trust and related documents.

43. Sec. 58 : Rights to transfer beneficial interest : the beneficiary, if competent to contract, may transfer his interest, but subject to the law of the time being in force as to the circumstance and extent in and to which may dispose of such interest.
Sec. 59 : Rights to sure for execution of trust: where no trustee are appointed or all the trustees die, disclaim, or are discharged, or where for any other reason the execution of a trust by the trustee is or becomes impracticable, the beneficiary may institute a suit for the execution of the trust, and the trust shall, so far as may be possible, be executed by the court until the appointment of a trustee or now trustee.

44. Sec. 60: Right to proper trustees: The beneficiary has a right (subject to trust deed) that the trust property shall be properly protected and held and administered by proper persons and by a proper number of such persons.
Sec. 61: Right to compel to any act of duty: the beneficiary has a right that his trustee shall be compelled to performance any particular act of his duty as such, and restrained from committing any contemplated or probable breach of trust.
Sec. 62: Wrongful purchase by trustee : if the trustee has wrongfully purchased any trust property, the beneficiary has a right to compel the trustee to declared it as trust property or of retransfer it.

45. Sec. 63 : Right against third party : where trust property comes into the hands of a third person inconsistently with the trust, the beneficiary may compel him to admit it formally or otherwise institute a suit to comprise it as a trust property.
Sec. 64 : Saving of rights of certain transferees : nothing is the section, 63 entitles the beneficiary to any right in respect of property.
Sec. 65 : Acquisition by trustee of trust property wrongfully converted: where a trustee wrongfully sells or otherwise transfers trust property and after wards himself becomes the owner, the property again becomes subject to the trust.

46. Sec. 68 :Liability of beneficiary joining in breach of trust : Where one of several beneficiaries …..
(a) joins in committing breach of trust, or
(b) knowingly obtains any advantage there from, without the consent of the other beneficiaries, or
(c) becomes aware of a breach of trust committed or intended to be committed, and either actually conceals it, or does not within a reasonable time take proper steps to protect the interests of the other beneficiaries, or
(d) has deceived the trustee and thereby induced him to commit a breach of trust,

47. the other beneficiaries are entitled to have all his beneficial interest impounded as against him and all who claim under him (otherwise than as transferees for consideration without notice of the breach) until the loss caused by the breach has been compensated.
Sec. 69 : Rights and liabilities of beneficiary’s transference : every person to whom a beneficiary transfers his interest has the rights, and is subject to the liabilities, of the beneficiary in respect of such interest at the date of the transfer.

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