Sections 56N explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This article explains the Maharashtra Public Trusts Act, 1950 as it applies in the State of Maharashtra, formerly the Bombay Public Trusts Act, 1950. Sections 56N to 56P, in Chapter VII-A, state the committee's general duty to manage the endowment, ten particular duties, the rule that its acts are not invalid for a vacancy or defect, and the State Government's power to give directions.
This article explains sections 56N to 56P 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 these sections, but the current text should be checked on the Charity Commissioner's website before relying on them.
Subject to State Government orders, a committee must manage and administer the endowment so that it is properly maintained, controlled and administered and its income is applied to its objects. Ten particular duties include a record, a budget, separate accounts for each endowment, recovery of lost property, suits, returns and inspection. No act of a committee is invalid only because of a vacancy or a defect in its constitution. The State Government may issue directions for better management.
Scope
These sections apply to committees under Chapter VII-A, for the endowments explained in Sections 56C and 56D. The officers of a committee are in Sections 56I to 56M. A committee that wants a short, practical review of its duties can take compliance advisory support.
Section 56N(1): the general duty
"Subject to the general and special orders of the State Government, it shall be the general duty of a committee to manage and administer the affairs of the endowment which vests in, or the management of which vests in it. It shall be the duty of a committee to so exercise the powers conferred and discharge the duties and functions imposed upon it, by or under this Act or under any instrument of trust, or a scheme, for the time being in force relating to such endowment as to ensure that such endowment is properly maintained, controlled and administered and the income thereof is duly applied to the object and purposes for which it was created, intended or to be administered."
The duty has three sources of powers and duties: the Act (and what is made under it), the instrument of trust, and any scheme in force. It is subject to State Government orders. And it has one aim: that the endowment is properly maintained, controlled and administered and the income goes to its objects.
Section 56N(2): particular duties
"In particular, but without prejudice to the generality of the foregoing provision, a committee shall—"
| Clause | Duty, as printed |
|---|---|
| (a) | maintain a record containing information relating to the origin, income, object and the beneficiaries of every such endowment |
| (b) | prepare a budget estimating its income and expenditure |
| (c) | make regular payment of salaries and allowances and other sums payable to the Secretary, officers and servants of a committee from the Management Fund |
| (d) | keep separate accounts for each such endowment |
| (e) | ensure that the income and property of the endowment are applied to the objects and for the purposes for which such endowment was created, intended or is to be administered |
| (f) | take measures for the recovery of lost properties of any such endowment |
| (g) | institute and defend any suits and proceedings in a court of law relating to such endowment |
| (h) | supply such returns, statistics, accounts and other information with respect to such endowment as the State Government may from time to time require |
| (i) | inspect or cause the inspection of the properties of such endowment |
| (j) | generally do all such acts as may be necessary for the proper control, maintenance and administration of such endowment |
The words "from the Management Fund" in clause (c) were substituted for "from such fund as may be prescribed" by Mah. 6 of 1964, s. 5.
Some points stand out. Clause (d) says "separate accounts for each such endowment": a committee in charge of several endowments cannot mix their accounts. Clause (a) requires a record of origin, income, object and beneficiaries. Clause (b) requires a budget, but the text prints no form or date. Clause (h) leaves the content of returns to what the State Government requires from time to time. Clause (j) is a catch-all.
For the ordinary public trust, the accounts and audit rules are in Section 33; this Chapter has its own duties and its own fund. Whether the audit provisions of the Act reach a Chapter VII-A endowment depends on Section 56T, which lists the sections that do not apply.
Section 56O: acts not invalid for a vacancy or defect
"No act or proceeding of a committee shall be invalid by reason only of the existence of any vacancy amongst its members, or any defect in the constitution thereof."
The word "only" matters. A vacancy or a defect in how the committee was constituted does not by itself make its decisions invalid. It does not protect an act that is wrong for another reason, such as one outside the committee's powers. The practical effect is continuity: a committee with a vacant seat can still pass resolutions and sign contracts, so long as it otherwise acts within the Chapter.
Section 56P: State Government directions
"The State Government may, from time to time, for the better management or administration of any endowment issue directions to a committee."
Two features. The power may be used "from time to time", so it is continuing. And it is for "the better management or administration of any endowment", which ties the direction to the purpose of the Chapter. The section does not print a form of direction, an appeal or a hearing. It links with the opening words of section 56N(1), which make the committee's general duty "subject to the general and special orders of the State Government". For the Charity Commissioner's power to have a committee's duty performed, see Sections 56Q and 56QQ.
Illustration. A committee manages three small temples in a district of Maharashtra and has a vacancy because one member has died. It still meets, passes the annual budget under clause (b) and keeps a separate account for each temple under clause (d). Its resolution to file a suit for a lost plot, under clause (g), cannot be challenged only because of the vacancy. The State Government later directs the committee to submit a return of offerings for the year, which it supplies under clause (h).
Need help with committee compliance?
A committee that keeps records, separate accounts, a budget and returns is better placed when the State Government asks questions. Our team can review the committee's duties and paperwork through compliance advisory support.
Key takeaways
- A committee must manage and administer the endowment so that it is properly maintained and its income applied to its objects, subject to State Government orders.
- Ten particular duties are listed, including a record, a budget, separate accounts, recovery of lost property and returns.
- No act is invalid only because of a vacancy or a defect in the constitution of the committee.
- The State Government may issue directions from time to time for better management.
Read next
- Sections 56I to 56M: chairman, meetings, sub-committees and staff
- Sections 56Q and 56QQ: enforcing duties and the Management Fund
- Section 33: balancing and audit of trust accounts
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.