DEED OF TRUST
(PARTLY PRIVATE AND PARTLY PUBLIC) WITH POWER TO CARRY ON BUSINESS
THIS DEED OF TRUST is made at...........on this.......day of.......between....of.....hereinafter referred to as "the Settlor" of One Part and (1) (2)(3) of. hereinafter referred to as the Trustees (which expression shall unless repugnant to the context or meaning thereof be deemed to mean and include the Trustees or Trustee for the time being of the said Trust hereby created, the survivors or survivor of them and the heirs, executors, administrators of the last surviving Trustee, their, his or her assigns] of the Other Part;
WHEREAS —
1. The Settlor is possessed of a sum of Rs.......(Rupees...) and he desires to settle the said amount on Trusts hereinafter appearing;
2. The Trustees have at the request of the Settlor agreed to act as the First Trustees of the said Trusts and these presents;
3. The Settlor desires to transfer the said amount to the Trustees on the execution of these presents to be held by the Trustees on Trusts and subject to the powers and provisions hereinafter contained.
NOW THIS DEED WITNESSETH THAT in consideration of the premises and in order to effectuate the said desire of the Settlor and for diverse other good causes and considerations, the Settlor doth hereby transfers unto the Trustees the said sum of Rs...........To Have And To Hold the same (hereinafter mentioned as "the Trust Fund" or Trust premises) unto the Trustees to the use and upon the Trusts and with and subject to the powers, provisions, agreements and declarations hereinafter declared and contained of and concerning the same.
1. This Trust would be known as
2. The expression "Trust Fund or Trust premises" herein appearing shall mean and shall be deemed to include the said amount of Rs..........as well as all other sums, and any property, moveable and immoveable that the Trustees may receive from the Settlor or any other person or hold, by way of purchase or any other mode of transfer or grant or by way of donations, interest accrued on Trust Fund, dividends, rents or other income and other accumulations howsoever made and investments representing the Trust Fund for the time being and from time to time.
3.TheTrustees shall in the first instance, collect the dividend, interests, rents, profits and other income of the Trust Fund and from and out of the same in the first place, shall pay all costs, charges and expenses of and incidental to the collection thereof.
4. Out of the income of the Trust fund or Trust premises, the trustees shall be entitled to spend or incur the following expenses namely —
(a) All rates, taxes, cess, assessments, dues, and duties, if any payable to the Government or to any Municipal or other Public body in respect of any immoveable properly forming part of the Trust Fund.
(b) The premium for the Insurance of the Buildings or any other insurable property moveable or immoveable for the time being forming part of the Trust premises.
(c) The costs of ordinary repairs and for providing; any amenities to the Buildings for the time being forming part of the Trust premises.
(d) The cost of making such additions/alterations or improvements to or in the Buildings forming part of the Trust premises as the Trustees shall think fit.
(e) Wages and salaries of any keeper, supervisor, servant or other employee employed by the Trustees in the carrying out of this Trust.
(f) Costs and expenses in keeping the Trust premises in good condition;
(g) The Architect's fee and legal charges and fees payable to other professionals engaged in the course of the administration of the Trusts,
(h) All other costs, charges and expenses of and incidental to the management and administration of the Trust fund and the Trust premises in accordance with the objects and purposes hereof or which may be incidental thereto.
5. After deducting the costs, charges and expenses incurred by the Trusts as aforesaid out of the total gross income received by them from the Trust Fund or Trust premises the balance that is the net income will be apportioned and appropriated as follows that is to say 50% of the net income will be set apart as Reserve Fund and 50% will be spent on charitable objects hereinafter mentioned.
6. Out of the 50% of the net income to be kept as a Reserve Fund, the Trustees shall have power to lend any monies to any member of the Settlor's family at interest not exceeding..........% per annum and repayable in not more than......years from the date of advance or to pay any monies to any member of the Settlor's family in case of need or for meeting the medical expenses on account of any serious illness or for meeting expenses of education of any member of the Settlor's family or for such other purpose as may be beneficial and helpful to any member of the Settlor's family. The settlor's family shall include the settlor's wife and children, his full brothers and sisters, now living, their respective wives, husbands and children and grandchildren or great-grand children for the time being existing, at the death of the last of the Settlor and his brothers & sisters. On the death of the last of such children and grand children and great-grand-children the said 50% of the income shall be transferred to and merged with the other income and be utilised for charitable purposes hereinafter mentioned.
7. As regards the remaining 50% of the net income the Trustees shall utilise the same in carrying out the following charitable objects:—
(i) In giving donations to any educational or medical or other charitable institutions or Trust;
(ii) In giving scholarships or awards to deserving students or student or for prosecuting studies by any deserving student or students either in India or abroad :
(iii) In meeting the costs or expenses of medical treatment required to be given to any deserving poor patient who cannot bear the same of his own. (iv) In helping any persons affected by calamity such as earth quake, fire, floods, accidents, etc.
(v) In such other charitable purposes as the Trustees may think fit. 6- The Trustees may from time to time open in their own names one or more banking account or accounts with such Bank or Banks as they shall from time to lime decide and any two of the Trustees shall have power to draw cheques upon such account, endorse cheques and dividends, warrants and pay or cause to be paid any moneys forming part of the Trust Funds to the credit of such account or accounts or place the same on deposit at any such bank or banks as may be necessary and otherwise and to operate such account or accounts.
9. The Trustees shall invest and keep invested all moneys that may come in their hands as the Trustees hereof (except such part thereof as may be required for current expenses for the purposes of the Trust premises not exceeding Rs....) in any of the securities authorised by section 20 of the Indian Trust Act II of 1882 and may from time to time at their discretion vary the same into or for others of the same or a like nature as may be beneficial to the Trust.
10. The Trustees shall have full power to compromise or refer to arbitration any claim or account whatsoever or any other matter in which the interests of the Trust Fund are involved and its funds and property may be concerned or wherein the Trustees as such may be parties.
11. The Trustees shall have the following powers:—
(a) to make all repairs and additions and alterations as may be deemed necessary or expedient by the Trustees in respect of any immoveable property or properties, ownership flats, sheds or blocks in Industrial estates belonging to the Trust and pay all
costs, charges and expenses thereof.
(b) to raise or borrow moneys required for the purpose of any of the objectives of the Trusts and or for carrying on the business authorised by these presents upon the security of mortgage, hypothecation or pledge of the Trust Fund or any part thereof or without any security and at such rate of interest and on such terms and conditions as the Trustees may in their absolute discretion think fit and proper.
(c) To sell all or any portion or part of the Trust property either by public auction or by private contract on such terms and conditions relating to title or otherwise in all respects as they may in their absolute discretion think fit and proper and to resell the same without being answerable for any loss occasioned thereby and for that purpose to sign and execute all the necessary conveyances and other deeds and assurances and to pass valid and effectual receipts and discharge for all the moneys received by them.
(d)To commence establish and carry on any business or trade which shall not be of any speculative nature and which is not normally likely to result in any loss and such business or trade may be carried on by the Trustees either alone or in partnership with any other person or persons and for such business or trade to utilise the corpus of the Trust property to such extent as the Trustees may in their absolute discretion think fit and to borrow funds for the business as the Trustees may think fit PROVIDED that, none of the Trustees shall be personally liable for any loss which may result in the business or trade undertaken by them by virtue of the power and authority conferred upon them under this Clause and all losses if any in such business or trade shall be borne and paid out of the Trust Fund and the Trustees shall be reimbursed and indemnified against such losses, if any, from and out of the Trust property. For purpose of carrying on such business the trustees shall have all powers and authorities to do all acts and things as are required or necessary for carrying on such business including powers to buy or sell property, to enter into contracts to appoint all types of employees, to advertise the business and do all other things they would be doing as prudent men carrying on the business on their own account.
(e) To determine, as they shall consider just, all questions and matters of doubt existing in the administration of the Trusts so that every such determination whether made upon a question actually raised or implied in the acts or proceedings of the Trustees shall so far as the law may permit be conclusive and that none of the Trustees and no person having formerly been one of the Trustees and no estate of any deceased trustee shall be liable for, or for the consequences of any act done or to be done or any payments made or omitted to be made in pursuance of any such determination as aforesaid notwithstanding that such determination shall be subsequently held to have been wrongly made,
(f) In their absolute and unfettered discretion to transfer the Trust property and establish the office of the Trust hereby created in any part of India as they may from time to time decide.
(g)To formulate a scheme or schemes for the management of the Trust property and business and may frame rules and regulations from time to time to achieve the aims and objects of the Trust hereby created.
(h) To settle and determine whether any money accruing due from any shares or securities or other funds which are or shall be considered for the purpose of these presents as capital or income and out of which part of the Trust Fund and whether out of capital or income any expenses outgoings or losses should or ought to be paid and otherwise to determine all matters of difficulty, doubt or dispute and all questions arising in the course of or incidental to the execution of the Trusts or powers of these presents and any such settlement or determination, although the question involved may not have been actually raised, shall be conclusive and binding on all persons claiming under these presents.
(i) To deposit any document of title or any other papers or documents or certificates held by them relating to the Trust under these presents with any Bank or Bankers or any other persons, firm or company whatsoever and may pay any sum or charges payable in respect of such deposits.
(j) To invest the Trust Fund in the name of any two or more of the Trustees.
(k) To appoint proxy or proxies for voting at any meeting of creditors, contributors, shareholders and others.
(1) To draw, make, accept, endorse, discount, execute and issue bills of exchange promissory notes, bills of lading, warrants, debentures, and other negotiable or transferable instruments or securities.
(m) To do all such other things as may be incidental to or conducive to the attainment of the above mentioned objects.
12. The Trustees shall also have power to invest the Trust Fund and the net amount realised on the sale of the Trust Fund or any portion or portions of the Trust Fund with all convenient despatch in any one or more of the following forms of investments at any place or places in the Union of India with liberty at their absolute discretion to sell, vary, transpose and convert the same from time to time.
(a) In fixed deposits with any firm, company, or corporation or scheduled Bank on such terms and conditions as they may in their absolute discretion think fit and proper.
(b) In the mortgage, whether legal or equitable of immoveable property or properties whether freehold or of leasehold nature, on such terms and conditions as the Trustees may in their absolute discretion think fit and proper.
(c) In any contributory mortgage alongwith other parties.
(d) In purchase and/or lease and/or sublease of any immoveable property or properties or any part thereof whether of freehold or leasehold tenures including the purchase of the undivided share, right, title and interest therein and/or purchase of ownership flats and or sheds or blocks in industrial estates on such terms and conditions as the Trustees may in their absolute discretion think fit and proper and to become members of any Co-operative Housing Society, or Apartment owners condominium.
(e) In the purchase of equity shares, debentures or preference shares of any limited company or corporation whether public or private.
13. The Trustees may, instead of acting personally, employ and pay for any agency of a Solicitor, Advocate, Architect, Chartered Accountant, Banker, Stock Broker, or other person to transact any business or do any act required to be transacted or done in the execution of the Trusts hereof including the receipt and payment of money and shall be entitled to be allowed and paid all charges and expenses so incurred and shall not be
responsible for the default of any such agent, employed in good faith.
14. Where the Trust Fund includes any immoveable property or proceeds of any immoveable property (such immoveable property being in this Deed referred to as the 'Trust premises').
(a) The Trustees may lease the Trust premises or any part thereof for any purpose whatsoever or for any term whatsoever and either wholly or partly in consideration of any premium if allowed by law or monthly or other periodical rent.
(b) The Trustees may erect, improve or repair buildings on the land.
(c) The Trustees may with or without consideration accept, surrender of any lease of the land or any part thereof,
(d) The Trustees may in executing any trust or power of sale or lease;
(i) Sell or lease any part of the Trust premises on such terms as they think fit.
(ii) Sell or lease or reserve any easement or right or privilege over any land or any part thereof;
(iii) Impose and make binding for the benefit of any part of the Trust property sold or leased any restrictions, stipulations as to user or otherwise affecting any part of the land retained;
(iv) Accept in exchange for the Trust premises or any part thereof to be sold or leased either with or without any money paid or received for equality of value any other property or any lease thereof;
(v) Enter into contract or grant any option for the sale or lease of the Trust premises or any part thereof or otherwise for the exercise by the Trustees of any of the foregoing powers mentioned in this clause;
All moneys received as consideration on any sale or for leasing, in execution of any trust or power shall be deemed to be and be held as capital moneys;
(vi) The Trustees shall not be bound to see or be liable or accountable for omitting or neglecting to see to the repair or insurance of any building or to the payment of any outgoings and may effect insurance of any such buildings in such manner and to such an extent as they shall think fit;
(vii) The Trustees may from time to time expend money comprised in the Trust Fund in erecting, demolishing and re-building and making alterations and improvements to any buildings on the land or any part thereof (including the provisions and installation of fixtures or otherwise) whether by way of replacement of the worn out fixtures, to such extent and in such manner as they shall think fit and any certificate in writing of any architect or surveyor employed by the Trustees to the effect that any work specified in such certificate is an alteration or an improvement to any such building shall be conclusive as between the Trustees and all persons interested hereunder and that any money expended on such work was properly expended in exercise of this power.
15. The Trustees may accept any donation or contribution In cash, shares and any moveable or immoveable property or properties for carrying out the objects of the Trust herein contained upon such terms and conditions as they may in their absolute discretion think fit and proper.
16. The year of account of the Trust shall end on 31st March every calendar year.
17. It shall be lawful for the Trustees or Trustee for the time being of these presents to reimburse themselves or himself or herself or/and discharge out of the Trust Fund all costs, charges and expenses incurred by them in or about the execution of the Trusts and powers of these presents.
18. Any Trustee for the time being an Advocate or any other person engaged in any profession or business shall be entitled to charge and receive all usual professional and other charges for the business or work done by him or his firm as such in relation to the Trust. Any of the powers and authorities by this settlement given to or vested in the Trustees may at any time, when there is more than one Trustee, be exercised by majority of the Trustees and without the concurrence, or with merely the formal concurrence of any Trustee who by reason of illness, infirmity or otherwise may be unable, without inconvenience, to take an active part therein and such Trustee may in order
to facilitate business by Power of Attorney or otherwise, empower any of the other Trustees to use his or her name for execution or signature of documents for any of the purposes of this Trust without being responsible for loss and all the acts and proceedings of the majority of the Trustees shall in such case be valid and effectual as if they had all concurred therein.
19. Any Trustee hereof who shall dissent from the exercise of any of the powers or authorities aforesaid shall nevertheless concur in executing or signing any documents decided to be executed by the majority of the Trustees without being responsible for the loss to the trust that may be caused. All the acts, proceedings and exercise of discretion of the majority of the Trustees shall be absolutely binding on the remainder of the Trustees.
20. Any Trustee duly authorised by the other trustees or a majority of them shall have full power to file and defend suit, appeals, applications etc. to declare, sign and verify all plaints, written statements, memos of appeals, cross objections, applications, affidavit, etc. and to accept, writ summons, notices etc. and to appear in any place or places in the Union of India before any Court, Income-tax Officer, Commissioner of Income-tax, Income-tax Appellate Tribunal, Sales Tax Officer, Assistant Collector of Sales by Collector of Sales Tax, Sales-tax Tribunal, Revenue Officers, Revenue Tribunal, Customs Officers, Assistant Collector of Customs, and any other Officer or Officers, and before all Officers and Tribunals and before any Registrar or Sub Registrar of Assurances at any places in the Union of India and to present and lodge any documents for Registration and to admit execution thereof and to compound all actions, suits, and other proceedings and all differences, disputes and demand and to refer any such difference, dispute or demands to arbitration and adjust, approve and settle all accounts relating to the Trust Fund and to execute all releases and discharges and to do all other things relating thereto.
21. The receipt of the Trustees for the purchase money of any property hereby directed or authorised to be sold or for any other moneys paid and for any securities transferred to them by virtue of these presents or in the execution of any of the Trusts or powers hereof shall effectually discharge the person or persons paying or transferring the same therefrom or from being bound to see to the application or being answerable for the loss or misapplication thereof.
22. The Trustees shall be responsible for their own individual acts and defaults only and not for the acts or defaults of one another nor for the acts or defaults of any banker, broker, auctioneer or other persons into whose hands any trust property consisting of securities or money or the income thereof shall in the ordinary course of business come or for the depreciation of any property or securities nor for any mistake or error of judgment committed by them in regard to the choice of the recipients of the benefit of the Trust premises or the objects thereof in any particular case or cases nor otherwise howsoever except for their wilful acts and defaults only.
The Trustees shall pay themselves and defray and satisfy out of the trust funds for the time being all expenses which they may reasonably have to incur in and about the execution of the trusts and powers herein contained and the administration of the Trust premises hereby effectuated, including the premia for the insurance of the buildings for the time being subject to the Trusts hereof but the Trustees shall not be personally responsible for any loss arising in consequence of any accidental omission to insure any building against risk from fire or other risk.
23. The Trustees shall cause proper accounts to be kept of the Trust premises and all additions thereto and the income thereof respectively and the accumulations of such income and the application thereof from time to time and shall on checking the same sign the account books twice in each year. The account books so signed by the Trustees shall be examined, audited and certified by one or more properly qualified auditors or auditor once in each year and the audited statements of account shall likewise be signed by all the Trustees.
24 The Trustees may at some convenient place in and at convenient intervals hold meetings from time to time as occasion shall require, for the transaction of the business of the Trust premises and the Trust hereof.
25. Any one Trustee may convene a meeting of the Trustees for the transaction of any particular business and any business may be disposed of by a circular instead of at a meeting unless majority of the Trustees think otherwise.
26Atleast two clear days, notice shall be given to the other Trustee as to the place, hour and day of the meeting and of the nature of the business to be transacted thereat.
27. The original minutes of the proceedings of every such meeting shall be deposited at the office of the Trustees who shall provide for the safe custody thereof.
28. If and so often as any of the Trustees hereby appointed or any future trustees or trustee of these presents shall die or go to reside out of India for more than a year or shall desire to retire from or refuse or become unfit or incapable to act in the Trusts of these presents or shall become bankrupt or insolvent or if the settlor or Trustees for the time being shall be desirous of appointing additional Trustee or Trustees hereof with them, it shall be lawful for the Settlor during his life and after his death for the surviving or continuing Trustees or Trustee for the time being of these presents or if there shall be no surviving or continuing trustee then for the retiring or refusing trustees or trustee or the executors or administrators of the last acting trustee to appoint any other person or persons to be a trustee or trustees in the place of the Trustee or Trustees so dying or going to reside abroad or desiring to retire or refusing or becoming unfit or incapable to act as aforesaid or to appoint an additional trustee or trustees as aforesaid with liberty upon such appointment to increase or diminish the original number of trustees which shall never be less than two or more than five and upon every appointment made under this clause the Trust premises hereby settled and the investments for the time being thereof shall be so transferred as to become vested in the new trustees or trustee either jointly with the continuing trustees or trustee or solely as the case may require and every trustee so appointed as aforesaid may as well before as after such transfer act as fully and effectually as if he had been hereby constituted a trustee.
In all cases of difference of opinion amongst the trustees as to whether a particular act should be done or omitted to be done in the execution of the trusts hereof or as to the powers and authorities herein contained or as to the true intent and meaning of any of the clauses or trusts hereof the same shall be deposited and dealt with in accordance with the opinion of the majority shall be final and conclusive. In case of an equality of votes the Trustees senior most in age shall have a second or casting vote. 32. If for any reason, practical or legal, it becomes difficult for the Trustees to this Trust what is partly private and partly charitable, it shall be lawful for the Trustees to create a separate public charitable trust in respect of the 50% net income of the Trust Fund or Trust premises to be utilised for that Charitable purpose by executing a separate Declaration or Deed of Trust and by appointing themselves and/or other person or persons as the Trustees of the said Trust and such Declaration or Deed of Trust shall contain all such powers and provisions as are herein contained but such modification therein or additions thereto or alterations therein as the Trustees may think fit. The Trustees shall have also power to add to or omit any of the charitable objects hereinabove mentioned.
IN WITNESS WHEREOF the Settlor and the Trustees have set their respective hands and seals the day and year first hereinabove written.
Signed sealed and delivered )
by the withinnamed settler )
in the presence of ... )
Signed, sealed and delivered )
by the withinnamed Trustees )
1 )
2. )
3. )
in the presence of... )