LL.B. (Three Years) Sem 1 Equity and Trust Law Oct 2025 Question Paper with Solutions

For full marks, cover: the object of the Act and the meaning of "public trust" (s.2(13)); the officers (Charity Commissioner and Deputy or Assistant Charity Commissioners) and the register (ss.3, 5, 15, 17); the duty to apply and the contents of the application (s.18), including the time limits and the memorandum to the Sub-Registrar; trusts created by will (s.29); the inquiry (s.19), findings (s.20) and entries (s.21); changes and de-registration (s.22) and further inquiry (s.22A); the effect of registration (ss.21(2), 30) and of failing to register (ss.31, 66); appeal (s.70); Ratilal Panachand Gandhi v. State of Bombay and Deoki Nandan v. Murlidhar explained; a table of the steps; a conclusion.

2. Deputy and Assistant Charity Commissioners (s.5). They are in charge of the Public Trusts Registration Offices in each region or sub-region (ss.15, 16).
3. The register (s.17). Each office keeps books, indices and registers of the public trusts in its area.

2. The duty to apply: section 18

1. Whose duty. "It shall be the duty of the trustee of a public trust to which this Act has been applied to make an application for the registration of the public trust" (s.18(1)).
2. Where. To the Deputy or Assistant Charity Commissioner of the region or sub-region where the trustee has an office for the trust. It may instead be where the trust property, or a substantial part of it, is situated (s.18(2)).
3. Form and fee. In writing, in the prescribed form, with the prescribed fee (s.18(3)).
4. Time. For a trust created before the Act was applied to it, within three months of the Act's application. For a trust created later, within three months of its creation (s.18(4)).
5. Contents (s.18(5)). The particulars are listed below.

5. the gross average annual income and the average annual expenditure, estimated over the previous three years (or the trust's life if shorter); and
6. an address for communications.

Trusts created by will (s.29). The executor must apply within one month of the grant of probate, or within six months of the testator's death, whichever is earlier. The period may be extended for sufficient cause.

3. The procedure after the application

(1) Inquiry (s.19). The Deputy or Assistant Charity Commissioner holds an inquiry. He may act on an application under section 18, on an application by any person interested, or on his own motion. He must find:

1. whether a trust exists and whether it is a public trust;
2. whether any property is the property of the trust;
3. whether the whole or a substantial part of the trust's subject matter is within his jurisdiction;
4. the names and addresses of the trustees and manager;
5. the mode of succession to the office of trustee;
6. the origin, nature and object of the trust;

3. De-registration (s.22(3A)). A trust may be removed from the register when its purpose is completely fulfilled, or becomes unlawful or impossible. It may also be removed when a revocable trust is revoked, or when the trustees do nothing to fulfil its object for five years.
4. Further inquiry (s.22A). Any particular not inquired into earlier may be inquired into later, and the register corrected.

5. The effect of registration and of failure to register

1. Conclusive entries (s.21(2)). Once made, the entries settle the trust's status and property.
2. Notice to purchasers (s.30). A person acquiring immovable property of a registered trust is deemed to have notice of the entries in the register.
3. Bar on suits (s.31). "No suit to enforce a right on behalf of a public trust which has not been registered under this Act shall be heard or decided in any court." This is the strongest reason to register.
4. Penalty (s.66). Failure to apply for registration in time, to send the memorandum, or to report a change is punishable with fine up to ten thousand rupees.

Deoki Nandan v. Murlidhar, AIR 1957 SC 133, decided 4 October 1956. Sheo Ghulam built a Thakurdwara in a village in Sitapur district. By his will he gave his lands to the deity, with a management committee that included outsiders. A distant relative sued for a declaration that it was a public temple. The courts below held it private. The Supreme Court reversed them and held it public. It said: "The distinction between a private and a public trust is that whereas in the former the beneficiaries are specific individuals, in the latter they are the general public or a class thereof." This is exactly the question the Deputy or Assistant Charity Commissioner must decide under section 19(i) before registering a trust.

7. The steps at a glance

Conclusion

Conclusion. Registration is the gateway to the State's supervision of public trusts in Maharashtra. Under section 18, the trustee must apply within three months, giving full particulars of the trust, its trustees and property. He must also send a memorandum of immovable property to the Sub-Registrar. The Deputy or Assistant Charity Commissioner inquires under section 19, records findings under section 20 and makes conclusive entries under section 21. Every later change must be reported within ninety days. An unregistered trust cannot sue under section 31, and its trustees may be fined. Ratilal Panachand Gandhi upheld this scheme of registration. Deoki Nandan supplies the test for the first question in every inquiry: is the trust public or private?