Section 45: Alienation of property of trust and endowment without sanction of Board to be void.

(1) Notwithstanding anything contained in the trust and endowment deed, any gift, sale, exchange or mortgage of any immovable property of trust and endowment, shall be void unless such gift, sale, exchange or mortgage is effected with the prior sanction of the Board. Explanation.- If any inam property was granted to the trust, and included in the trust property, the provision under sub-section (1) above shall apply for any alienation of that property. (2) The Board may, after publishing in the Tamil Nadu Government Gazette, the particulars relating to the transaction referred to in sub-section (1) and inviting any objections and suggestions with respect thereto and considering all objections and suggestions, if any, that may be received by it from the concerned trustee or administrator or any other person interested in the trust or endowment, accord sanction to such transaction, if it is of opinion that such transaction is,— (i) necessary or beneficial to the trust or endowment; (ii) consistent with the objects of the trust or endowment; (iii) the consideration thereof is reasonable and adequate: Provided that the sale of the property sanctioned by the Board shall be effected by public auction and shall be subject to confirmation by the Board within such time as may be prescribed: Provided further that the Court may, on the application of the aggrieved trustee or administrator or other person, for reasons to be recorded by it in writing, permit such sale to be made otherwise than by public auction, if it is of opinion that it is necessary so to do in the interest of the trust or endowment. (3) The utilization or investment of the amount realized by sale or exchange, mortgage of any property shall be made by the trustee or administrator subject to the approval of the Board, and where any amount has been raised by mortgage of any such property, the trustee or administrator or other person shall make repayment of the mortgage-debt and obtain a discharge of the mortgage-debt from the mortgagee within such reasonable time as the Board may specify. (4) Every approval given by the Board under sub-section (3) shall be communicated to the trustee or administrator and shall also be published in the manner prescribed. (5) The trustee or administrator or any other person having an interest in the trust and endowment, who is aggrieved by the decision given under sub-section (3), may within ninety days from the date of communication to him of such decision or the publication of the decision, as the case may be, prefer an appeal to the Court against such decision, and thereupon, the Court may, after giving the appellant and the Board, a reasonable opportunity of being heard, confirm, modify or set aside such decision. (6) Where, before the commencement of this Act, any sale, exchange, or mortgage of any immovable property belonging to any trust or endowment was effected, without the prior sanction from appropriate authority or Court detriment to the interest of the trust or endowment, such transaction shall be null and void and shall be deemed never to have been effected and accordingly no right or title in such property shall vest in any person acquiring the property by such transaction and any such property shall be deemed to be the property of the trust or endowment concerned and any person in possession of such property shall be deemed to be an encroacher and thereafter the provisions of sections 51 and 52 shall apply.