Sections 59 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. Section 59 deals with a trustee who fails to pay the contribution and with the Charity Commissioner's order to a bank, section 60 says how the Public Trusts Administration Fund is applied, and section 61 sends the funds of earlier laws into it.
This article explains sections 59 to 61 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. Chapter IX of the Act (assessors, sections 62 to 65) was deleted by Mah. 22 of 1967, s. 5.
A trustee (or a person charging or collecting dharmada) who fails to pay the contribution under section 58 is liable to the penalties provided in section 66; that section is a separate one and no figure is stated here. The Charity Commissioner may also order a bank or other person holding the trust's money to pay the contribution from it, and the payer gets a full discharge. The bank or person may appeal to the State Government. The Fund pays for the regulation of public trusts and the Act's purposes. Funds under earlier Acts are credited to it.
Section 59(1): penalties
"If the trustee of a public trust (other than the Charity Commissioner) or the person charging or collecting dharmada fails to pay the contribution under section 58 he shall be liable to penalties provided in section 66."
The words "or the person charging or collecting dharmada" were inserted by Bom. 14 of 1951, s. 16, as the footnote prints. The section covers a trustee of a public trust, and, since 1951, the dharmada collector explained in Section 54. It excludes the Charity Commissioner where he is himself the trustee. The penalty is not stated in section 59; it is "provided in section 66", a section that this article names only. For the contribution itself, see Section 58.
Trustees who have missed a payment, or are unsure of the amount due, can take books of accounts compliance support before the position worsens.
Section 59(2): order to a bank or other person
"The Charity Commissioner may also make an order directing the bank in which or any person with whom any money belonging to the public trust are deposited to pay the contribution from moneys as may be standing to the credit of the public trust or may be in the hands of such person or may from time to time be recovered from or on behalf of the public trust by way of deposit by such bank or person and such bank or person shall be bound to obey such order. Every payment made pursuant to such order shall be a sufficient discharge to such bank or person from all liability to the public trust in respect of any sum or sums so paid by it or him out of the moneys belonging to the public trust so deposited with the bank or person."
| Feature | What the text provides |
|---|---|
| Who orders | The Charity Commissioner |
| To whom | "the bank in which or any person with whom any money belonging to the public trust are deposited" |
| Source of payment | Moneys standing to the credit of the trust, in the hands of the person, or later recovered or deposited on behalf of the trust |
| Duty | The bank or person "shall be bound to obey such order" |
| Protection | Payment is "a sufficient discharge" to the bank or person from liability to the trust for the sum paid |
The word "also" shows that the order is in addition to the penalty. The text prints no notice to the trust before the order, so a trust that expects a demand should keep its accounts ready. The recovery of sums as arrears of land revenue is a separate provision in Section 77.
Section 59(3): appeal to the State Government
"Any bank or person who has been ordered under sub-section (2) to make the payment may, appeal to the State Government, and the State Government may after making such inquiry as it thinks fit, confirm, modify or cancel such order." The appeal is given to the bank or person that received the order, not to the trust. The text prints no period for the appeal. Whether the trust has a remedy of its own under other provisions of the Act is not answered in this sub-section.
Section 60: application of the Fund
- "The Public Trusts Administration Fund shall, subject to the provisions of this Act and subject to the general or special order of the State Government, be applicable to the payment of charges for expenses incidental to the regulation of public trusts and generally for carrying into effect the provisions of this Act."
- "The custody and investment of the moneys to be credited to the Public Trusts Administration Fund and the disbursement and payment therefrom shall be regulated and made in the prescribed manner."
So the Fund pays charges "incidental to the regulation of public trusts" and for carrying the Act into effect, under State Government orders. Custody, investment and disbursement follow the prescribed manner, in rules not described here. The sums credited to the Fund are listed in Section 57.
Section 61: funds under earlier Acts
"On the application of this Act to any public trust or class of public trusts which may have been registered under any of the Acts specified in Schedule A or Schedule AA, the State Government may direct that the Charity Commissioner shall recover any arrears due under any such Act and that the amount of any fund for the administration of public trusts constituted under the said Act for the region or sub-region in which such public trust or class of public trust was registered or any portion thereof including the arrears recovered by the Charity Commissioner shall be credited to the Public Trusts Administration Fund constituted under this Chapter."
The key words are "may direct": the transfer follows a State Government direction. It covers arrears due under the older Act and the older fund for the region or sub-region of registration. The older Acts are listed in the Schedules, explained in Schedules A and AA.
Illustration. A trust in Nagpur fails to pay its contribution for a year. Section 59(1) makes the trustee liable to the penalties in section 66. The Charity Commissioner also orders the bank where the trust holds a deposit to pay the contribution out of the balance. The bank pays, and is discharged to the trust for that amount. The bank thinks the order covers money not belonging to the trust and appeals to the State Government, which may confirm, modify or cancel the order.
Need help with an unpaid contribution?
An order to a bank can freeze a trust's operations if it is ignored. Our team can reconcile the contribution, correct the accounts and reply to the demand through books of accounts compliance services.
Key takeaways
- A trustee or dharmada collector who fails to pay the contribution is liable to the penalties in section 66, which are not stated here.
- The Charity Commissioner may order a bank or person to pay the contribution from the trust's money; the payer is discharged.
- The bank or person may appeal to the State Government, which may confirm, modify or cancel the order.
- The Fund pays for regulating public trusts and carrying the Act into effect, under State Government orders.
- Funds under earlier Acts may be credited to the Fund on a State Government direction.
Read next
- Section 57: the Public Trusts Administration Fund
- Section 58: contribution by public trusts to the Administration Fund
- Sections 76 and 77: Civil Procedure Code and recovery of sums
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.