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Article Published in the Express Magazine Dated March 18, 2001
General Attorney : Rajiv K. Luthra

I am a Trustee of a Charitable Trust registered under the Bombay Public Trust Act of 1950. The Board of Trustees has several disputes over trust matters in various courts. Though I am spending money from my pocket, my opponents are lavishly spending trust funds. Are there any laws to prevent or restrict them from misusing trust money?

G. M. Ashraff, Surat

As per the general rule, a trustee cannot claim any compensation for his services unless the Trust instrument provides for this. Nevertheless, under section 32 of the Indian Trusts Act, 1882, when a Trustee incurs expenses inter-alia while executing a Trust properly and for the benefit of the Trust property, he is entitled to reimburse himself to such expenses. When a Trustee has taken leave of the court to sue or defend in litigation considered to be in the interest of the Trust, the Trustee shall be reimbursed, irrespective of the results of the action. Where the court does not grant leave, the costs of litigation will be reimbursed only if the action was defended or brought in the interest of the Trust.

From the given facts, it is difficult to ascertain the subject of the case or whether the other Trustees are using the Trust money rightly. You may try to injunct the Trust Board from utilizing Trust funds by filing a suit for injunction, but if the Board succeeds in proving that the litigation and expenses incurred thereto are in the interest of the Trust, your action may fail.

This situation is for the courts to analyze. In case the courts are satisfied that the funds are not being used in the interest of the Trust but for personal benefits, they may grant injunction. Further, if you are successful in proving and satisfying the court that the Board is only using it for their personal interests, the courts may allow costs of litigation on the Trustees thereon.

What is the difference between an Attorney General, a Solicitor General and an Advocate General? Similarly what is the difference between an advocate, barrister, solicitor and an attorney?

Sunil S., Pune

These expressions are used in different ways, depending upon the legal system in use in different countries. An Attorney General is the chief law officer of a country. An Attorney General, whose office has been created by the Constitution of India, has to have the same qualifications as a Supreme Court Judge. He gives legal advice to the Government of India and performs other legal duties referred and assigned by the President.

The second highest legal officer in a Government is the Solicitor General. The Advocate General, whose office is also created by the Constitution, advises a State Government in legal matters and other legal duties referred or assigned to him by the Governor. The Advocate General is appointed by order of the Governor and has to have the same qualifications as a High Court Judge.

Under The Advocates Act, 1961, an Advocate is a person holding a law degree recognized by the Bar Council of India and is enrolled with a State Bar Council. He assists, defends, pleads or prosecutes for others in legal aspects and before court. The expressions “Advocate”, "Attorney", "Solicitor" and “Barrister” mean the same in India, except in some jurisdictions like Mumbai, where a solicitor has to pass an exam, although this has no statutory recognition, the same merely being recognized by convention.

 
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