Section 74 in Madras Hindu Religious and Charitable Endowments Act, 1951
74. Rectification of defects disclosed in audit and order of surcharge against, trustee etc.
(1)The Area Committee or the Commissioner, as the case may be, shall send a copy of every audit report relating to the accounts of a religious institution to the trustee thereof, and it shall be the duty of such trustee to remedy any defects or irregularities pointed out by the auditor and report the same to the Area Committee or the Commissioner, as the case may be.(2)The Area Committee shall forward to the Commissioner a copy of, every audit report received by it under clause (a) of section 72 and the report if any, of the trustee made under sub-section (1), together with such remarks as the Area Committee may with to make thereon.(3)If, on a consideration of the report of the auditor along with the report, if any, of the trustee and the remarks, if any, of the Area Committee, the Commissioner thinks that the trustee or any other persons, was guilty of misappropriation or wilful waste of the funds of the institution or of gross neglect resulting in a loss to the institution, the Commissioner may, after giving notice to the trustee or such person to show cause why an order of surcharge should not be passed against him and after considering his explanation, if any, by order, certify the amount so lost and direct the trustee or such person to pay within a specified time such amount personally and not from the funds of the religious institution.Provided that if in respect of any expenditure or dealing with trust property, the trustee or such person had obtained the directions of the Area Committee or of the Commissioner and had acted in accordance with such directions, he shall not be held responsible.(4)The Commissioner shall forward a copy of the order under sub-section (3) with the reason for the same, by registered post to the trustee or person concerned.(5)The trustee or other person aggrieved by such order may, within thirty days of the receipt by him of the order, either-(a)apply to the Court to modify or set aside the order and the Court, after taking such evidence as is necessary, may confirm, modify or remit the surcharge with such orders as to costs as it may think appropriate in the circumstances, or(b)in lieu of such application may appeal to the Government who shall pass such orders as they think fit.(6)Neither the Court nor the Government to which or to whom an application or appeal is made under sub section (5) shall have power to stay the operation of the order pending the disposal of the application or appeal.(7)An order of surcharge under this section against a trustee shall not bar a suit for accounts against him except in respect of the matter finally dealt with by such order.(8)The Collector of the district in which is situated any property of the trustee or other person from whom an amount is recoverable by way of surcharge shall, on a requisition made by the Commissioner, recover such amount as if it were an arrear of land revenue and pay the same to the religious institution concerned.
