1. If on a perusal of the report of the auditor made under Sec. 34 or an inspection made under Sec. 48 the Assistant Commissioner is of opinion, or is informed by the Commissioner that the Commissioner is of opinion, that material defects exist in administration of the public trust, the Assistant Commissioner may require the working trustee to submit an explanation thereon within such period as he thinks fit.
2. If, on the consideration of the report of the auditor and the result of the inspection, the accounts and the explanation, if any, furnished by the working trustee, the Assistant Commissioner is, after holding an inquiry in the prescribed manner and giving opportunity to the person concerned, satisfied that the trustee or any other person has been guilty of gross negligence or breach of trust, misappropriation or misconduct which has resulted in loss to the public trust, he shall determine -
(a) the amount of loss caused to the public trust:
(b) where such loss was due to any breach of trust misapplication or misconduct on the part of any person;
(c) whether the trustee or any other person is responsible for such loss; and
(d) the amount which the trustee or any other person is liable to pay to the public trust for such loss.
3. The amount determined to be payable by any trustee or any other person in accordance with clause of sub-section (2) (hereinafter referred to as the amount surcharged) shall subject to any order of the court under section 50, be paid by the trustee or person surcharged, within such time as the Assistant Commissioner may fix.