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Section 79CC of the Maharashtra Public Trusts Act, 1950: compensatory costs for frivolous or vexatious proceedings before the Charity Commissioner

If, in an inquiry under the Act, the officer is of opinion that the application on which the inquiry began was frivolous or vexatious, he may, at the request of the person against...

Published
Updated
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7 min
Questions
6 answered
  • Medium Complexity
Topic
Trust Registration
Published
October 3, 2026
Last updated
Oct 3, 2026
Reading time
7 min
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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 79CC allows the Charity Commissioner or the Deputy or Assistant Charity Commissioner, at the request of the person against whom an application was made, to order the applicant to pay compensation if the application that began an inquiry was frivolous or vexatious.

This article explains section 79CC 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. The compensation figure below is the one printed in the 2018 official text, and the current law should be checked before it is relied on.

What changed and when

Section 79CC was inserted by Bom. 28 of 1953, s. 17, as the footnote prints. The opening part of sub-section (1), from "If in an inquiry" to "as the case may be", was substituted by Mah. 20 of 1971, s. 53(1), and the words "five hundred rupees" were substituted for "two hundred and fifty rupees" by Mah. 20 of 1971, s. 53(2). Sub-section (3) was substituted by Mah. 55 of 2017, s. 29. The section sits next to the general cost rules in Sections 79A to 79C.

Sub-section (1): the request and the show-cause notice

"If in an inquiry under the provisions of this Act, the Charity Commissioner or the Deputy or Assistant Charity Commissioner is of opinion that the application on which such inquiry was commenced was either frivolous or vexatious, the Charity Commissioner, the Deputy or as the case may be, Assistant Charity Commissioner, may at the request of the person against whom such application was made (hereinafter referred to as 'the opponent') call upon the person making the application (hereinafter referred to as 'the applicant') to show cause why the applicant should not pay compensation to the opponent and if the applicant is not present, direct the issue of a summons to him to appear and show cause aforesaid."

ElementWhat the text says
Setting"an inquiry under the provisions of this Act"
OpinionThe application on which the inquiry began "was either frivolous or vexatious"
Trigger"at the request of the person against whom such application was made"
StepCall on the applicant "to show cause why the applicant should not pay compensation to the opponent"
If applicant absent"direct the issue of a summons to him to appear and show cause"

The officer acts on the opponent's request; the sub-section does not make it a duty on the officer's own motion. The applicant must have a chance to show cause, and if he is absent, a summons is issued. The words "frivolous or vexatious" are not defined in the section, and the officer forms the opinion on the facts of the case.

A person who is on the receiving end of a baseless application, and a person who has made an application and wants to defend it, can both use legal dispute resolution support to present the position.

Sub-section (2): the order

"If the Deputy or Assistant Charity Commissioner or the Charity Commissioner, as the case may be, is satisfied that the application was either frivolous or vexatious he may, after recording reasons, order that compensation to such amount not exceeding five hundred rupees as he may determine be paid by the applicant to the opponent."

Points to note. The standard moves from "of opinion" in sub-section (1) to "satisfied" in sub-section (2), after the show-cause stage. The order needs recorded reasons. The ceiling is "not exceeding five hundred rupees", the figure printed in the 2018 text; the officer may order less. The payment goes from the applicant to the opponent. It does not go to the Public Trusts Administration Fund or to the officer. The figure is old and the reader should check the current law before relying on it.

Sub-section (3): appeal

"An appeal shall lie against an order awarding compensation under sub-section (2) if made by the Deputy or Assistant Charity Commissioner to the Charity Commissioner whose decision shall be final and the provisions of section 70 shall apply to such appeal."

So an order made by the Deputy or Assistant Charity Commissioner can be appealed to the Charity Commissioner; his decision is final; and section 70 applies, including its sixty-day period and the Charity Commissioner's powers on appeal. See Section 70. The sub-section speaks of an order "made by the Deputy or Assistant Charity Commissioner"; for an order made by the Charity Commissioner himself, the text prints no appeal under this sub-section.

Why the section matters

Court fees on applications and appeals are dealt with in section 79D and Schedule B, which are separate and are not described here. Section 79CC gives a small financial answer to applications made without substance. It protects the opponent, not the officer, and it needs the opponent's own request. A trust that is the target of repeated baseless applications should ask for compensation expressly in the proceedings and not wait for the officer to raise it.

Illustration. A disgruntled former employee of a school trust in Pune files an application with the Assistant Charity Commissioner alleging mismanagement. After an inquiry the officer forms the opinion that the application was vexatious. The trustees ask that the applicant be called on to show cause. He appears, and after recording reasons the officer orders him to pay the trust's chairman, the opponent, compensation at the printed ceiling or below. The applicant may appeal to the Charity Commissioner under section 70.

Need help with a baseless application or a compensation order?

Whether you are the opponent seeking compensation or the applicant facing it, the facts and the reasons recorded matter. Our team can advise and appear through legal dispute resolution services.

Key takeaways

  • The officer may call on the applicant to show cause, at the opponent's request, when the application that began the inquiry was frivolous or vexatious.
  • After recording reasons, he may order compensation not exceeding five hundred rupees, as printed, to be paid by the applicant to the opponent.
  • An order of the Deputy or Assistant Charity Commissioner can be appealed to the Charity Commissioner under section 70; his decision is final.
  • The amount is as printed in the 2018 text; check the current law.

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 79CC

  • 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.

What is the maximum compensation?

Five hundred rupees, as printed. Check the current law.

Who receives the compensation?

The opponent, the person against whom the application was made.

Good compliance is boring by design; the drama starts only when something has been skipped.

— TaxClue Compliance Desk

Section 79CC: 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.

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Questions, answered

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

Five hundred rupees, as printed. Check the current law.

The opponent, the person against whom the application was made.

Sub-section (1) is triggered at the request of the opponent.

Yes. The order is made after recording reasons.

Against an order of the Deputy or Assistant Charity Commissioner, to the Charity Commissioner, whose decision is final.

No, not in the section.