Kerala Gazette No.52 dated 24th December, 1957.
PART I
Section iv
GOVERNMENT OF KERALA
Law Department
NOTIFICATION
No.LD(A)1-3494/51/Law
Dated, Trivandrum, 8th November, 1957.
In exercise of the powers conferred by Section 30 of the Official Trustees Act, 1913 (Central Act II of 1913) the Government of Kerala hereby make the following Rules for carrying into effect the object of the said Act and for regulating the proceedings of the Official Trustee of Kerala in the discharge of his duties.
RULES FOR REGULATING THE PROCEEDINGS OF THE OFFICIAL TRUSTEE OF KERALA
Rule I.(1) The Official Trustee shall charge in respect of all trust properties transferred to or vested in him under the Official Trustees Act, 1913 (hereinafter referred to as the Act)
(i) On all capital moneys and on the capital value of all other properties and securities of any kind whatsoever, constituting the corpus of the trust received by him, a fee according to the following scale, subject to a minimum of Rs.10.
Percent.
On estates of a value not
exceeding one lakh of rupees 2
On estates of a value exceeding one lakh
but not exceeding two lakhs of rupees
On the first lakh 2
On the remainder 11/2
On estates of a value exceeding
two lakhs of rupees
On the first lakh 2
On the second lakh 11/2
On the remainder 1
(ii) On all sums received by him by way of interest or dividends in respect of moneys invested and on all rents and profits collected by him, a fee of 5 per cent subject to the following minimum:--
Where the income does not
exceed Rs.20 per half-year Re.1 per half-year
Where the income exceeds Rs.20 but
does not exceed Rs.50 per half-year Rs.2.50 nP.Do
Where the income exceeds Rs.50 but
does not exceed Rs.75 per half-year Rs.3.75 nP.do.
Where the income exceeds Rs.75 but
does not exceed Rs.100 per half-year Rs.5 per half-year
(iii) On all capital moneys or trust funds invested by him, including the purchase or sale of property or any investment by way of mortgage, a fee of per cent on the amount of the investment or the value of any property purchased or sold, such fee being realized from the income of the beneficiary requiring a change of investment and not from the gross value of the trust.
(2)If in any case it appears to the Official Trustee that the circumstances of a trust are, or probably will be, such as to render his duties in relation thereto exceptionally simple or otherwise of an exceptional character justifying this course, he may, with the previous sanction of the Government remit the whole or any part of the prescribed fee.
(3) When in the opinion of the Official Trustee the income of any trust is not liable to serious fluctuations, he may, with the previous sanction of the Government from time to time charge (in lieu of the fee other than the fee on capital payable in pursuance of sub-rule (1) above) a fixed half-yearly fee of such amount as may be reasonable.
(4) The capital value of immovable properties, for purposes of levying commission shall be ten times the annual gross rentals derived from the said properties on the date when the Official Trustee takes possession of the said properties.
(5) For purposes of levying commission the movables shall be valued by the Official Trustee at the time he takes possession of them.
Commission on interest realized from securities shall be levied on the net amount collected by the Official Trustee in the course of administration.
Rule II.(1) All fees and commission leviable under these rules except those chargeable to trusts under the charge of the Official Trustee shall be payable to him in advance by the person liable to pay the same.
(2) All fees and commission collected by the Official Trustee under the provisions of these rules shall be paid by him on or before the 20th of the month following that in which these are realized into the Government Treasury to the credit of the Government under XXI Administration of Justice (d) Miscellaneous Receipts(ii) Other items Receipts under the Official Trustees Act Fees and Commission:
Provided that the Official Trustee may make refunds of fees and commission overcharged from the fees and commission collected by him under the provisions of these rules.
Rule III.The Official Trustee shall keep the following registers, books of account etc.
Sl.No. Description Form No.
1 Register of Trusts in charge 1
of the Official Trustee
2 Register of Assets in each estate 2
3 General Cash Book showing in separate columns 3
every receipt and payment through the Office and every
receipt and payment through the Bank, of cash cheque,
divident-Warrants, Government and other securities,
etc., the dates of receipt and payment and voucher
number for each such payment
4 Ledger in which shall be entered the account 4
current with each separate estate showing the detailed
debit and credit items and every transaction whether in cash,
Government or other securities
5 Register of sales of movable and immovable properties 5
6 Register of outstandings in which shall be entered all the 6
outstandings due to an estate in the shape of book debts,
promissory notes, mortgages, pledges, etc.
7 Stock book of jewellery, trinkets and other valuables 7
belonging to each estate
8 Register of Government and other securities 8
belonging to each estate
9 Register of rents and lease amounts collected from 9
immovable properties
10 Register of suits and proceedings to which Official 10
Trustee is a party
11 Register of commission and fees collected and credited 11
to Government monthly
12 Receipt Book 12
13 Income-tax Refund Register in which shall be entered all 13
particulars regarding applications made to income-tax Officers
concerned for refund of Income-tax deducted and particulars of
all refunds realised
14 Assessment Register in which shall be entered particulars 14
of all taxes, quit rents, kists, etc., paid in respect of immovable
properties
15 Periodical payments Register in which shall be entered particulars 15
of all payments made to beneficiaries, etc., periodically
16 Register of buildings and fixtures in which shall be entered 16
particulars of all house properties,particulars of fixtures and
movables belonging to each building, repairs and improvements
effected to each building and the value thereof
17 Register of Amounts to be transferred to Government 17
18 Register of Properties locked and sealed or left in the 18
custody of beneficiaries
All moneys, bonds and other securities received or paid 19
All trusts which have come to an end 20
Rule IV.(1) The Official Trustee shall once in every year, that is to say on or before the 1st day of March, deliver to Government a true schedule (Form No.19) showing the gross amount of all sums of money and all bonds or other securities received or paid or delivered by him on account of each trust of which he is the trustee and the balance during the year ending on the last day of December next before the day of delivery of such schedule and a true schedule (From No.20) of all trusts which shall have come to an end or of which the Official Trustee shall have ceased to be the trustee and the property subject to which shall have been paid or made over to the person entitled to the same or to new trustees during the same period specifying the nature and amount or value of such property and the persons to whom the same has been paid or made over.
(2) The Official Trustee shall be entitled to the payment of a fee of fifty naye Paise per centum subject to a minimum of Rs.50 per annum for the preparation of the yearly schedule under the last preceding rule.
Rule V.(1) The accounts and schedules of the Official Trustee shall be audited once every year by the Examiner of Local Fund Accounts.
(2) The Examiner of Local Fund Accounts shall submit to the Government together with the audit report a statement of the accounts in the form specified below.
(a)Abstract of cash and Government or other securities received and paid during the year (Statement A)
(b) Official Trustees balance for the year (Statement B)
(c) Abstract of the Official Trustees Commission account for the year(Statement C)
(d) Statement of cash balances of Rs.100 and upwards on the last day of the year, with reasons for non-investment (Statement D)
(3) The Examiner of Local Fund Accounts shall be entitled to a fee of fifty naye Paise per centum subject to a minimum of Rs.25 per annum for every yearly audit.
(4) The cost and expenses of preparing the said schedules and accounts, and of every such audit and examination as aforesaid, shall be defrayed by all the trust estates to which such schedules or accounts shall relate.These costs and expenses and the portion whereof to be contributed by each of the trust estates shall be determined in proportion to the income derived from each of the trust estate during the year in question by the Examiner of Local Fund Accounts and shall be paid out of the said estates accordingly by the Official Trustee.Trusts whose income fall below Rs.100 per annum will, however be exempted from bearing any portion of the above charges.
(5) When a trust estate is about to be closed, the Official Trustee may call upon the auditor or auditors to ascertain and fix a definite sum to be retained by the Official Trustee to defray the costs and expenses referred to in sub-rule (4) supra in respect of the estate in question.The sum thus fixed by the auditor or auditors shall be treated as the proportion of the above charges to be contributed by the trust estate in question.The sum so fixed shall be immediately transferred to a separate account called The closed estates audit etc., charges account and appropriated towards the audit charges, fees for preparation of and the charges for printing the schedules when they become payable.
Rule VI.(1) No person shall be entitled to inspect the accounts relating to a trust and the reports and certificates of the auditor relating thereto, without first satisfying the Official Trustee that he is a beneficiary under the trust:
Provided that nothing hereinbefore contained shall preclude the Official Trustee from refusing inspection of documents and papers of a confidential nature, and the decision of the Official Trustee in this respect shall be final.
(2) Every beneficiary desiring such inspection shall, at least one clear day before the day on which he desires inspection, apply in writing to the Official Trustee setting forth the following particulars:--
(a) His name and address.
(b) The name of the trust as to which inspection is desired.
(c) The nature of his interest in such trust.
(d) The day on which he desires inspection.
He shall also deposit with the application a minimum fee of Re.1 which shall be refunded to the applicant in case inspection is not granted.
(3) The Official Trustee shall, after being satisfied as to the interest of the applicant in the trust or matter in question and also as to his bona fides, appoint an hour on the day named in the application for inspection by the applicant under such supervision as he thinks fit.If for any sufficient reason inspection cannot be granted on the day named by the applicant, the Official Trustee shall appoint some other hour and day convenient to the applicant.
(4) A fee calculated at the rate of Re.1 for every half hour or fraction thereof shall be paid by the applicant in respect of every such inspection as relates to trust estates which have not been closed in the hands of the Official Trustee.The fee for such inspection in respect of closed trust estates shall be calculated at the rate of Rs.2 for every half-hour or fraction thereof.
(5) No person shall be entitled to obtain copies of or extracts from the said accounts, certificates and reports of the auditor unless he is a person entitled to inspection thereof:
Provided that nothing hereinbefore contained shall preclude the Official Trustee from refusing grant of copies of documents and papers of a confidential nature, and the decision of the Official Trustee in this respect shall be final.
(6) A fee calculated at the rate of twenty-five naye Paise per folio of 72 words subject to a minimum of Re.1 shall be levied in respect of every copy of extract granted, and if any such copy or extract is required to be certified by the Official Trustee as a true copy, an additional fee of Re.1 shall be levied.
Rule VII.(1) Whenever, owing to doubts or disputes as to the person or persons beneficially entitled or for any other cause there shall remain in the hands of the Official Trustee a cash balance exceeding Rs.100 belonging to any trust or estate, he shall without delay, in the absence of any directions in this respect in the deed or other declaration of trust, invest the same in Government securities or in the Government Savings Bank, save and except that no investment on mortgage of immovable property shall be made by the Official Trustee without the previous sanction of the High Court.
(2) The Official Trustee shall procure that all Government and other securities which may be issued, delivered, or transferred to him on account of any trust estate, whether by endorsement or otherwise, shall be issued, delivered or transferred in his name of office.
(3)The Official Trustee shall not at any time retain in his keeping a larger sum than Rs.200.All sums received by him shall from time to time be lodged in the nearest District Treasury to the credit of a Personal Deposit Account to be kept in the name of the Official Trustee and shall be drawn against when necessary in his name of office.
(4) All Government securities and Bank or Railway or other shares coming into the Official Tustee's charge shall forthwith be lodged by him in his name of office as Official Trustee with the District Treasury Officer for safe custody, except when it may be necessary for the Official Trustee to retain such securities or shares for a temporary purpose.
Rule VIII.--(1) Remittances to the Office of the High Commissioner for India in the United Kingdom, London of sums of money payable or beloning to persons resident in Europe or in other cases when such remittances are required, shall be made by purchasing bills of exchange payable in London on demand drawn by some one of such Banks as the Government from time to time approve.Every approval of a Bank or Bank for the purpose of this rule shall be given by an order in writing, signed by the Chief Secretary to Government and shall continue in force until revoked by a like order.
(2) In other cases, remittances shall be made in accordance with the directions of the payee, and in the absence of such directions by Postal money order, at payee's expense.
Rule IX.--(1) When the administration of a trust in completed as far as it is possible and the accounts of the trust have been closed and audited, and no claim thereto has been put forward, the fact of such completion and closre shall be notified in the Government Gazette with the particulars of the amounts remaining unclaimed and if ascertainable, the names of the person or persons prima facie entitled to the same.The notice shall further state that the amounts will be transferred to Government if they are not claimed within a period of twelve years from the date of the notification.The period of twelve years prescribed under Section 23 of the Official Trustee's Act, 1913, shall be reckoned from the date of such notification:
Provided that where the administration of a trust estate is not possible from the commencement of the vesting and the assets therein remain unclaimed, the Official Trustee may,on the expiry of a period of twelve years from the date of vesting, close the accounts and after scrutiny thereof by the Examiner of Local Fund Accounts, remit the funds to the credit of Government:
Provided further that if the balance remaining unclaimed in a trust estate is ascertained and found not to exceed Rs.25 (Rupees twenty-five) no notification in the Government Gazette need be made and the period of twelve years in respect of such a trust estate shall be reckoned from the date of approval of the closing of the account by the Official Trustee.
(2) All moneys transferable to the account and credit of Government under section 23 of the Act shall be paid to the account and credit of Government in Government Treasury by the Official Trustere under Head "XXI Administration of Justice (d) Miscellaneous Receipts (ii) other items- Receipts under Official Trustee's Act".
(3) Any person caliming payment of the same under the provisions of Section 24, clause (i) of the Act shall establish his claim to the satisfaction of Government.
Rule X.--The Official Trustee may accept any trust intended for the safeguarding and investment of the property of a religious institution or of a commercial undertaking or for the protection of the interests of the creditors of such institution or undertaking provided that he shall not be liable to see to the proper performance or carrying out of the objects of such religious or charitable instituion or to see to the proper management or carrying on of the business of such commercial undertaking.
Rule XI.--Notification of the contents of a will under Section 9 of the Act shall be made by forwarding to the Official Trustee either the original will or the probate copy of the same.
Rule XII.--Without the sanction of Government the Official Trustee shall not enter upon any litigation in connection with an estate in his charge the expenses of which are likely to exceed the assets of the estate alredy in his hands, unless he is properly and sufficiently indemnified against such expenses.
Explanation.-- By 'proper and sufficient indemnity' is meant idemnity sufficient to cover all probable costs and consisting in the deposit of Government securities, cash or jewels to an amount to be determined by the Official Trustee.
Rule XIII.--The Official Trustee may advance such amounts as he thinks fit to the estate clerks and agents employed by him for incurring contingent expenditure.The amount of the advance shall be regulated with reference to the amount of security furnished by the clerk or agent concerned and accounted for so as to conform to the principles contained in Travancore Financial and Account Code, Volume I.
Rule XIV.--The Official Trustee may recoup from out of the contingent grant made to his office, sums below Rs.10 at debit of any trust, the recovery of which is doubtful or impossible.
By order of the Governor,
T.R. BALAKRISHNA IYER,
Law Secretary.
[Forms omitted]