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Section 55 of the Maharashtra Public Trusts Act, 1950: cy-pres application when the original purpose fails or cannot be carried out

Where the Assistant or Deputy Charity Commissioner is of opinion that the original object has failed, that income or surplus has not been, or is not likely to be, utilised, that...

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Trust Registration
Published
October 3, 2026
Last updated
Oct 5, 2026
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Last updated: October 2026Verified against: Government sources

This article explains the Maharashtra Public Trusts Act, 1950 as it applies in the State of Maharashtra, formerly the Bombay Public Trusts Act, 1950. Section 55 lets the Charity Commissioner direct that the property or income of a public trust be applied "cypres" to other charitable or religious objects when the original object has failed or the income is not being used.

This article explains section 55 as amended up to Maharashtra Act No. XXXVI of 2018 (in force 21 May 2018), per the official text of the Law and Judiciary Department modified up to 19 December 2018. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the amending texts consulted do not change this section, but the current text should be checked on the Charity Commissioner's website before relying on it.

What changed and when

Section 55 was substituted by Mah. 55 of 2017, s. 16, as the footnote prints, and the version explained here is that substituted section. Sections 56 and 56A, which follow it, were deleted by Mah. 55 of 2017, ss. 17 and 18. If you are reading an older printed copy of the Act, check which version you hold.

Sub-section (1): the four cases

"If upon an application made to him or otherwise, the Assistant or Deputy Charity Commissioner is of opinion that,—" one of four cases exists. The inquiry can therefore start on an application or on the officer's own motion.

ClauseCase, as printed
(a)"the original object for which the public trust was created has failed"
(b)"the income or any surplus balance of any public trust has not been utilized or is not likely to be utilized"
(c)"in the case of a public trust other than a trust for a religious purpose, it is not in public interest expedient, practicable, desirable, necessary or proper to carry out wholly or partially the original intention of the author of the public trust or the object for which the public trust was created and that the property or the income of the public trust or any portion thereof should be applied to any other charitable or religious object"
(d)"in any of the cases mentioned in sections 10 to 13 or in regard to the appropriation of the dharmada sums held in trust under section 54, the directions of the Charity Commissioner are necessary"

Clause (c) is limited: it applies to a public trust "other than a trust for a religious purpose". For a religious trust, clauses (a), (b) and (d) are the routes. Clause (d) joins this section to the earlier ones: see Sections 10 to 13 on trusts that are not void despite uncertainty or failure of the object, and Section 54 on dharmada.

"then, the Assistant or Deputy Charity Commissioner shall pass appropriate orders after making an enquiry and make a report to the Charity Commissioner." The officer's step is an enquiry, appropriate orders and a report. The final directions come from the Charity Commissioner in the next sub-sections. Trustees facing an inquiry of this kind can obtain legal consultation on how to present the position.

Sub-section (2): directions of the Charity Commissioner

"The Charity Commissioner may suo motu or on the report of Assistant or Deputy Charity Commissioner, give directions and in giving such directions, he shall give effect to the original intention of the author of the public trust or object for which the public trust was created." So he may act on his own motion or on the officer's report. The duty to "give effect to the original intention" comes first, and only then does the next sub-section allow a departure from it.

Sub-section (3): cy-pres application

"The Charity Commissioner may direct the property or income of the public trust or any portion thereof to be applied cypres to any other charitable or religious objects. In doing so, it shall be lawful for the Charity Commissioner to alter any scheme already settled or to vary the terms of any decree or order already passed in respect of the public trust or the conditions contained in the instrument of the public trust."

This is the cy-pres power in the text. Three features: it may apply to the whole property or income or "any portion thereof"; the new objects may be "charitable or religious"; and in doing so he may alter a scheme, vary the terms of a decree or order, and vary the conditions in the trust instrument. A scheme framed by an officer under Section 50A can therefore be altered under this sub-section as well.

Sub-section (4): appeal

"An appeal shall lie against the decision or order passed by the Charity Commissioner under sub-section (2) or, as the case may be, sub-section (3) of this section to the Court, as if such order was a decree passed by the District Court from which an appeal lies, within sixty days from the date of the said order, which shall otherwise be final." The period is sixty days from the date of the order. The printed text repeats the words "to this section to the Court" once; the sense is the appeal to the Court. The text prints no right of appeal against the officer's own order under sub-section (1).

Illustration. A trust in Chandrapur was created to run a dispensary giving treatment without charge in a village that has since been merged with a larger town. A hospital now serves the area, and the trust's rental income has gone unused for years. The Assistant Charity Commissioner holds an enquiry, passes orders and reports to the Charity Commissioner. The Charity Commissioner, giving effect first to the author's intention, directs that the income be applied to medical equipment for the district hospital, as a charitable object nearest to the original one. A trustee unhappy with the direction may appeal to the Court within sixty days.

Need help when a trust's purpose has failed?

If the object of a trust cannot be carried out, the trustees should document the facts before approaching the officer. Our team can prepare the application and represent the trust through legal consultation services.

Key takeaways

  • Four cases: failure of the original object, unused income or surplus, impracticability (not for religious trusts), and directions needed under sections 10 to 13 or for dharmada.
  • The Assistant or Deputy Charity Commissioner enquires, passes appropriate orders and reports.
  • The Charity Commissioner gives directions, first giving effect to the original intention, and may apply property or income cy-pres.
  • He may alter a scheme, vary a decree or order, and vary the instrument's conditions.
  • Appeal lies to the Court within sixty days from the date of the order.

Read next

Disclaimer: Based on the Maharashtra Public Trusts Act, 1950 as modified up to 19 December 2018 in the official text of the Law and Judiciary Department, Government of Maharashtra, as consulted on 3 October 2026. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the current text, the Maharashtra Public Trusts Rules and the Charity Commissioner's circulars should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 55

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who can start a cy-pres inquiry?

It can start on an application or otherwise, that is, on the officer's own opinion.

Does clause (c) apply to a religious trust?

No. It applies to a public trust other than a trust for a religious purpose.

The portal accepting a form does not mean the form was correct — check before you submit.

— TaxClue Compliance Desk

Section 55: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

It can start on an application or otherwise, that is, on the officer's own opinion.

No. It applies to a public trust other than a trust for a religious purpose.

Give effect to the original intention of the author of the trust or the object for which it was created, in giving directions.

Sub-section (3) allows him to vary the terms of any decree or order already passed in respect of the trust.

Sixty days from the date of the order, to the Court.

It was substituted by Mah. 55 of 2017, s. 16.