All moneys paid by the State Government shall constitute a charge upon the property of the trust.
Chapter VII-A2 Control over Trusts Section 72-A 72-A. Liability of trustees for surcharge. - (1) Every person shall be liable for the loss, waste or misapplication of any money or other property belonging to a trust, if such loss, waste or misapplication is reported by the Examiner of Local Fund Accounts, or other audit authority empowered by the State Government in this behalf to be a direct consequence of his neglect or misconduct in the performance of his duties while a trustee; and he may after being given an opportunity by notice served in the manner provided for the service of summonses in the Civil Procedure Code, to show cause by written or oral representation why he should not be required to make good the loss, be surcharged with the value of such property or the amount of such money by the Deputy Commissioner, and if the amount is not paid within fourteen days from the expiry of the period of appeal prescribed by sub-section (2), the Collector at the request of the Deputy Commissioner shall proceed forthwith to recover the amount as if it were an arrear of land revenue, and have it credited to the trust fund.
(2) The persons against whom an order under sub-section (1) is made may, within thirty days of the notification of such order, appeal to the State Government who shall appoint an officer to hear the appeal; and the appellate authority shall have the power of confirming, modifying or disallowing the surcharge :
Provided that no person shall be called upon to show cause under this section 38 The Punjab Town Improvement Act, 1922, Section 69-A
1. Inserted by Punjab Act 4 of 1976.
2. Chapter VII-A added by Punjab Act 7 of 1974.
after the expiry of a period of four years from the occurrence of such loss, waste or misapplication or after the expiry of one year from the time of his ceasing to be a trustee, whichever period expires later :
Provided further that nothing in this section shall be deemed to debar the aggrieved party from seeking a remedy in a civil court against an order made under sub-section (1).
(3) Nothing in this section shall apply to a Government employee appointed as a trustee.
Section 72-B 72-B. Power to suspend any resolution or order of trust. - The Deputy Commissioner may, by order in writing, suspend the execution of any resolution or order of a trust or prohibit the doing of any act which is about to be done, or is being done in pursuance of or under cover of this Act, or in pursuance of any sanction or permission granted by the trust in the exercise of its powers under the Act, if, in his opinion, the resolution, order or act is in excess of the powers conferred by law or contrary to the interests of the public or likely to cause waste or damage of trust funds or property, or the execution of the resolution or order, or the doing of the act, is likely to lead to a breach of the peace, to encourage lawlessness or to cause injury or annoyance to the public or to any class or body of persons.
Section 72-C 72-C. Power to provide for performance of duties in case of default of trust.
- (1) When the Deputy Commissioner, after due inquiry, is satisfied that a trust has made default in performing any duty imposed upon it by this Act, or by any order or rule under this Act, he may, by order in writing, fix a period for the performance of that duty; and, should it not be performed within the period so fixed, he may appoint some person to perform it, and may direct that the expense thereof shall be paid by the trust within such time as he may fix.
(2) Should the expense be not so paid, the Deputy Commissioner may make an order directing the person having the custody of the balance of the trust fund to pay the expense, or so much thereof as may from time to time be possible, from that balance in priority to all other charges against the same.
Section 72-D 72-D. Action of Deputy Commissioner to be immediately reported. - When the Deputy Commissioner makes any order under section 72-B or section 72-C he shall forthwith forward to the State Government a copy thereof, with a statement of reasons for making it, and with such explanation, if any, as the trust may wish to offer and the State Government may thereupon confirm, modify or rescind the order.
Section 72-E 72-E. Power of State Government and its officers over trusts. - (1) The State Government and Deputy Commissioners acting under the orders of the State Government, shall be bound to require that the proceedings of trusts shall be in conformity with law and with the rules in force under any enactment for the time being applicable to Punjab generally or the areas over which the trusts have authority.
(2) The State Government may exercise all powers necessary for the performance of this duty and may among other things, by order in writing, annul or modify any proceeding which it may consider not to be in conformity with law or with The Punjab Town Improvement Act, 1922 Section 72-B 39 such rules as aforesaid, or for the reasons, which would in its opinion justify an order by the Deputy Commissioner under section 72-B.
(3) The Deputy Commissioner may, within his jurisdiction for the same purpose, exercise such powers as may be conferred upon him by rules made in this behalf by the State Government.
Section 72-EA [72-EA. Inspection - (1) The State Government may authorise any of its Officers, not below the rank of a Deputy Secretary to Government of Punjab, to inspect or examine any office of a trust or any service or work undertaken by the trust or by any of its authorities or any property belonging to the trust and to report thereon.
(2) The trust and every trust authority and all its employees shall be bound to afford the Officer authorised under sub-section (1) access at all reasonable times to the premises and properties of the trust and to all records, accounts and other documents, the inspection whereof he may consider necessary to enable him to discharge his duties.]1 Section 72-EB [72-EB. Power to issue directions by State Government. - If, on receipt of any report under section 72-EA or otherwise, the State Government is of the opinion -
(a) that any duty imposed on the trust or any trust authority by or under this Act has not been performed or has been performed in an imperfect, insufficient or unsuitable manner; or
(b) that adequate financial provision has not been made for the performance of any such duty; it may direct the trust or the trust authority, to make arrangements to its satisfaction for the proper performance of the duty, or, as the case may be, to make financial provision to its satisfaction for the performance of the duty within such period as the State Government thinks fit, and the trust or the trust authority shall comply with the direction so made :
Provided that, unless in the opinion of the State Government, the immediate execution of the direction is necessary, it shall, before doing so, give the trust or the trust-authority, as the case may be, an opportunity of showing cause why the direction should not be made.]2 Section 72-EC [72-EC. Power to provide for enforcement of direction under section 72- EB. - If any action the taking of which has been directed under section 72-EB has not been duly taken within the stipulated period, the State Government may make arrangements for taking of the action and may also direct that all expenses connected therewith shall be defrayed out of the trust funds.]3 Section 72-E 72-F. Suspension and supersession of trusts. - (1) If, in the opinion of the State Government, a trust is not competent to perform, or persistently makes de- 40 The Punjab Town Improvement Act, 1922, Section 72-EA
1. Inserted by Punjab Act No. 22 of 1986.
2. Inserted by Punjab Act No. 22 of 1986.
3. Inserted by Punjab Act No. 22 of 1986.
fault in the performance of the duties imposed on it by or under this Act or any other law or exceeds or abuses its powers, the State Government may, by an order published, together with the statement of reasons thereof, in the Official Gazette, declare the trust to be incompetent or in default or to have exceeded or abused its powers, as the case may be, and suspend it for such period, not exceeding one year, as may be specified in the order.
(2) If, at any time after the expiry of the period of suspension, the trust again acts in the manner referred to in sub-section (1), the State Government may, by a like order, supersede the trust for such period as may be specified in the order.
(3) Before making an order of suspension or supersession, opportunity shall be given to the trust to show cause why such an order should not be made.
(4) When a trust is suspended or superseded by an order under sub-section (1) or sub-section (2), -
(a) in the case of an order of suspension, all trustees shall, from the date of order, cease to be trustees during the period of such suspension;
(b) in the case of an order of supersession, all trustees shall, from the date of the order, vacate their seats;
(c) all powers and duties of the trust may, till the trust remains suspended or is reconstituted, as the case may be, be exercised and performed by such person as the State Government may appoint in this behalf;
(d) all property vested in the trust shall, till the trust remains suspended or is reconstituted, as the case may be, vest in the State Government;
(e) before the expiry of the period of supersession, the trust shall be reconstituted by the State Government in accordance with the provisions of this Act.
Chapter VIII Rules Section 73