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MARCH 09, 2026 S.R.JOSHI 1-wpl-7587-2026.doc Therefore, the question is whether the trustees are competent to do so. In my view, as observed above, "no". The Trust Deed of the settlor is like a last wish- will of the settlor. Once a Trust is created, it is irrevocable unless it is expressly desired by the settlor himself. In view of the admitted fact that two properties mentioned in the trust deed were intended to be the trust properties and the income out of that properties to be utilised for the purpose of fulling the object of the trust and in another words, as desired by the settlor. The source of income of the trust is only the properties coming under the Trust Deed. The Trustees are the custodian of the trust property and they were required to manage the property as per the wish expressed in the Trust Deed. Therefore, it is held that the previous trustees were not at liberty to change the documents by moving the deed of rectification relating to the properties of the trust as described in the Trust Deed. Therefore, the amendment in the said deed of trust properties carried out in pursuance to the said deed of rectification is bad and the order passed by the Dy. Charity Commissioner dated 22nd November, 1965 is bad. Therefore, the Charity Commissioner modified that order while exercising the revisional jurisdiction u/s.70- A after lapse of time, is not in any manner bad-in-law. Under Section 70-A, the Charity Commissioner has been conferred even suo motu revisional power and no limitation is there for the purpose of exercising the revisional power."

(emphasis supplied)

18. From a plain reading of these provisions, two things emerge very clearly. First, even section 22(3A)(d) refers to "trust, being MARCH 09, 2026 S.R.JOSHI 1-wpl-7587-2026.doc revocable, is expressly revoked"; meaning thereby that in order that a trust is a revocable trust, a power to revoke is essential. In other words, the Trust Deed should have an express clause enabling the settlor to invoke the same and revoke the trust. In the absence of any revocability clause, a trust cannot be revoked. This is in line with settled law that when a person transfers property to another, either by way of gift or by way of a settlement, and on the acceptance of such transfer by the donee or the settlor, as the case may be, there is a complete transfer of ownership of property and the transferor is denuded of all right, title and interest in the property, unless the transfer is explicitly made conditional on the happening of some event. Absent any such specific clause, the fulfillment whereof either results in transfer of ownership of property to the transferee, or on the transferor being able to revoke the transfer, the transfer is absolute. The interpretation that unless there is an irrevocability clause, the trust is revocable, is completely contrary to law and has no legs to stand on. Secondly, the provisions of sections 22(3A) and (3B) are clear as to the consequences where a trust is revocable, and is revoked. In such a scenario, the Deputy or Assistant Charity Commissioner will first de-register the trust, then, he may take over the management of the properties of the trust de-registered, and MARCH 09, 2026 S.R.JOSHI 1-wpl-7587-2026.doc thereafter, dispose them of by sale or otherwise, and deposit the sale proceeds in the Public Trusts Administration Fund established under Section 57 of the MPT Act. Thus, the assets of a trust, which is registered under the MPT Act, would never come back to the settlor. They are sold on revocation and the funds are deposited in the Public Trusts Administration Fund. Once that is the case, then such trusts can never be termed as revocable trusts in terms of section 63(a) of the Act. Section 63(a) of the Act provides that a trust is revocable if the Trust Deed has a provision for re-transfer directly or indirectly of the whole or any part of the income or assets to the transferor, or where such provision in any way, gives the transferor a right to re-assume power directly or indirectly over the whole or any part of the income or assets. The same is impossible in case of a trust registered under the MPT Act. This is for the simple reason that in the case of a revocable trust, if the same is revoked, then the assets or proceeds from sale would never go the settlor. Thus, the reasoning of Respondent No. 1 is completely baseless and unfounded.

(emphasis supplied)

29. A trustee acting in a fiduciary capacity indubitably has to act only as per the instructions provided for in the Trust Deed by the Settlor with the exceptions that he has to comply with the orders of the authorities under the MPT Act and orders of the Courts. Section 36A(1) is very clear that a trustee of every public trust shall administer the affairs of the trust and apply the funds and properties thereof for the purpose and objects of the trust in accordance with the terms of the trust. The trust property has to be applied by the trustees in terms of the Trust Deed. Thus, when the Trust Deed does not contain any clause as to revocability, the trustee cannot allow the trust property to be re- transferred to the settlor. Though not very relevant, similar are the provisions in Chapter III of the Indian Trusts Act, 1882 as to the rights, duties and responsibilities of a trustee. This also supports the case that once there is no revocability clause, the trust is irrevocable as the trustee cannot act in defiance of the provisions of the Trust Deed.

42. This takes us to the next contention raised on behalf of Respondent No. 1, viz., that it is not feasible for a Commissioner to examine various recitals of every Trust Deed to confirm irrevocability, and therefore, an express clause is necessary for administrative clarity and to prevent litigation. In this regard, it would be relevant to reproduce paragraph 11 of the Affidavit in reply as under:

"11. The Petitioners have also contended that a public charitable trust is irrevocable by operation of law and, therefore, absence of an explicit irrevocability clause in the trust deed cannot be a ground for rejection. It is contended that the trust is deemed irrevocable. It is submitted that a deed of trust may contain several recitals. Now, if the trust deed is silent as to revocability i.e there is no express revocable clause in the trust deed, but there is a recital in any form for provision of re-transfer of the trust assets or income or property to the settlor, then the trust is deemed to be revocable within the meaning of Sections 60-63 of the Act. In such circumstances, the trust cannot be granted registration since it is hit by Sections 60-63 of the Act read alongwith section 11 of the Act which makes the said sections have overriding effect before any exemption is granted under Section 11. The PCIT cannot examine in each case the nature of the various recitals or whether there is any scope of retransfer of trust assets which is highly litigious and that is why a legal duty is placed upon the trust to contain an express irrevocability clause failing which no registration can be granted. In the absence of a specific and express clause in the instrument of MARCH 09, 2026 S.R.JOSHI 1-wpl-7587-2026.doc trust affirming the irrevocable nature of the Trust, satisfaction cannot be formed by the authority granting registration."