Most disputes inside a trust eventually come to one question: can this trustee be made to go? Under the Maharashtra Public Trusts Act, 1950 the answer depends on why. A trustee who has resigned, died or reached the end of a term leaves in one way. A trustee who is accused of misconduct is removed in another. This note sets out the routes, the grounds and what each involves.
Key facts
- Law
- Maharashtra Public Trusts Act, 1950: Section 41D (misconduct) and Section 47 (removal or discharge on application)
- 41D grounds
- Misappropriating or improperly dealing with trust property, persistent default in filing accounts, wilful disobedience of a lawful order
- Who can apply
- A trustee or any person interested in the trust; the Charity Commissioner can also act on his own
- Process
- Notice, charges where there is prima facie material, and a hearing
- Appeal
- Within 60 days; confirm the current appellate forum
Four ways a trustee ceases to hold office
- Resignation, death or the end of a term. The trust deed and, since 2025, Section 30A govern this. The board records the vacancy and the trust files a change report under Section 22, ordinarily within 90 days.
- Removal under the trust deed. Some deeds allow the board, or a general body, to remove a trustee by a stated majority. The procedure in the deed must be followed exactly, and the removal is then reported by a change report.
- Removal by the Charity Commissioner for misconduct (Section 41D). On specified grounds, after charges and a hearing.
- Removal or discharge on an application by a person interested (Section 47). Where the trustee has, for example, gone abroad, become insolvent, refused to act or become unfit.
Section 41D: suspension, removal or dismissal for misconduct
The Charity Commissioner may act on the application of a trustee or any person interested in the trust, on a report under Section 41B, or on his own motion. The grounds are that the trustee:
- makes persistent default in submitting the accounts, report or return;
- wilfully disobeys a lawful order issued by the Charity Commissioner under the Act or the Rules;
- continuously neglects his duty, or commits malfeasance, misfeasance or breach of trust in respect of the trust;
- misappropriates or deals improperly with trust property;
- accepts a position in relation to the trust that is inconsistent with his position as trustee; or
- is convicted of an offence involving moral turpitude.
How a 41D proceeding runs
A notice is issued to the trustee. If there is no reply, or the reply is not satisfactory, charges are framed. Since the 2017 amendment this is done only where there is prima facie material, and the trustee must have an opportunity of being heard. The Act sets time frames for framing charges and passing the final order, and the officer must record reasons where they cannot be met. Pending the decision, the trustee can be placed under suspension. The final order must state the charges, the trustee’s explanation and a finding with reasons on each charge, and it can be appealed.
Two points the Bombay High Court has made are worth knowing. A Section 41D action is independent of any change report: a pending change report does not prevent it. And the result of a 41D proceeding is suspension, removal or dismissal; the section does not attach a further disqualification.
Section 47: appointment, removal or discharge on application
Any person interested in the trust may apply to the Charity Commissioner for the suspension, removal or discharge of a trustee, or for the appointment of a new trustee where there is none or the trust cannot be run until a vacancy is filled. The grounds listed in the section include that the trustee:
- has disclaimed or died;
- has been absent from India for a continuous period of six months without the Charity Commissioner’s leave, or has left India to reside abroad;
- has been declared insolvent;
- desires to be discharged, or refuses to act;
- is, in the Charity Commissioner’s opinion, unfit or physically incapable of acting, or has accepted a position inconsistent with being a trustee; or
- has been convicted of an offence under the Act or an offence involving moral turpitude.
After hearing the parties, the Charity Commissioner may appoint a trustee, or remove or discharge one. In choosing a new trustee he considers the wishes of the author of the trust and of anyone empowered to appoint, whether the appointment helps or hinders the trust, the public interest and the trust’s custom and usage. The order is treated as a decree of the court, and an appeal lies within sixty days to the court named in the Act; confirm the current appellate forum before filing.
Which route fits?
| Situation | Usual route |
|---|---|
| Trustee resigned, died or term ended | Board resolution and a Section 22 change report |
| Deed allows removal by vote | Follow the deed exactly, then a change report |
| Accounts not filed, funds misused, orders ignored | Section 41D application |
| Trustee abroad, insolvent, refusing to act or incapable | Section 47 application |
| Wider relief needed, such as accounts, a scheme or a declaration of breach of trust | Suit under Section 50, with the Charity Commissioner’s consent under Section 51 |
Practical points
- Collect the record first. Audit reports, unfiled returns, bank statements, minutes and correspondence decide a 41D case. Allegations without documents rarely succeed.
- Standing matters. The applicant must be a trustee or a person interested in the trust. Courts have limited the provision so that strangers to the trust cannot misuse it.
- Keep the trust running. Where the trust is left with no trustee, or cannot function until the vacancy is filled, the Charity Commissioner can appoint a fit person to act in the meantime.
- Check Section 30A. Since 1 September 2025, many disputes turn on whether a trustee is a tenure trustee whose term has ended. See the 2025 amendment.
Frequently asked questions
Can the other trustees simply pass a resolution removing a trustee?
Only if the trust deed gives them that power, and only by following the deed’s procedure. Without such a power, removal has to come through the Charity Commissioner under Section 41D or Section 47.
Does filing a change report stop a removal application?
No. The Bombay High Court has held that a Section 41D proceeding is independent of the Section 22 inquiry.
Can a removed trustee be barred from becoming a trustee again?
The Bombay High Court has held that Section 41D itself provides for suspension, removal or dismissal and does not add a separate disqualification.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This note describes general procedure under the Maharashtra Public Trusts Act, 1950 as understood in October 2026. It is not legal advice; each case depends on the trust deed and its facts.
Related
- Trustee disputes before the Charity Commissioner
- Section 50 and 51 suits
- Appointing a new trustee
- Documents for a change report