Bailabel Type : bailable

Description

Section 92 of the Code of Civil Procedure (CPC) deals with legal proceedings related to the management, administration, and mismanagement of public charitable trusts. It is a provision that protects public charities and ensures their proper governance and accountability. The section allows individuals or entities to seek the intervention of the court in cases where the trust is being mismanaged or is not being properly administered for the public benefit.

Key Provisions of Section 92:

1. Who Can File a Suit:

   • A suit under Section 92 can be filed by:
     • The Attorney General (or any person authorized by the Attorney General).
     • A public servant or a person having an interest in the trust or charity, like a beneficiary or someone representing the public interest.
     • The trustees of the charitable institution or any concerned individual with an interest in the proper functioning of the trust.

2. Grounds for Filing a Suit:

   • A suit can be filed under Section 92 in cases where there is:
     • Mismanagement of the public charitable trust or its funds.
     • Breach of trust by the trustees.
     • Failure to administer the trust according to its objectives or in the best interest of the public.
     • Fraudulent activities or misuse of funds meant for the charitable purpose.
     • Violation of the trust deed or unlawful diversion of funds meant for the charity.

3. Court’s Jurisdiction:

   • A suit under Section 92 can be filed in the court of a district judge or a high court, depending on the jurisdictional requirements. In certain cases, the matter may be brought before a special court appointed for charitable matters.

4. Purpose of the Suit:

   • The main objective of a suit under Section 92 is to ensure that the public charity or trust is properly administered and that the funds or property are being used for the intended charitable purposes.
   • The court can issue directions regarding the appointment of new trustees, proper use of funds, and prevention of misuse of charitable assets.

5. Relief the Court Can Grant:

   • The court may pass orders for:
     • Appointment of new trustees if the existing trustees are found guilty of mismanagement or breach of trust.
     • Removal of trustees who are not fulfilling their duties or who are involved in fraudulent activities.
     • Restoration of funds or property that has been diverted for non-charitable purposes.
     • Accountability measures to ensure that the charity is managed properly, including the submission of financial records and audits.
     • Other reliefs deemed appropriate by the court, including the restructuring of the trust or charity.

6. Public Interest and Protection of Trust Property:

   • Section 92 emphasizes the protection of public interest in the case of charitable trusts, as such trusts serve the larger community and are meant to fulfill public and charitable objectives.
   • The section seeks to ensure that these trusts are used for their intended purposes and not abused for personal or private gain.

Punishment

Section 92 is mainly a civil provision that deals with ensuring accountability in the management of public charitable trusts. It does not directly impose criminal punishment. However, there are legal consequences if a trust is mismanaged or if the trustees violate their duties:

1. Removal and Disqualification of Trustees:

   • If trustees are found guilty of mismanagement, they may be removed from their positions by the court.
   • The court may also disqualify them from holding trustee positions in the future, particularly if they are found guilty of fraud, embezzlement, or serious misconduct.

2. Restoration of Property:

   • If the trust property or funds are found to have been misused or diverted, the court can order the restoration of those funds or property to the trust. This ensures that the assets are used for their intended charitable purposes.

3. Compensation for Losses:

   • Trustees found responsible for mismanaging or illegally handling the trust property may be required to pay compensation to restore the value of any lost or misused assets.

4. Legal Costs and Liabilities:

   • The costs of the suit may be borne by the guilty party (such as the trustees who were responsible for the mismanagement), particularly if the trustees' actions have harmed the trust.
   • This may include the legal costs incurred by the plaintiff or the public authorities in bringing the suit.