Dissolution of trust.

(1) If, in the opinion of the State Government a trust persistently makes default or is negligent in the performance of duties imposed on it by or under this Act or the rules made thereunder, or when all schemes sanctioned under this Act have been executed or have so far been executed as to render the continued existence of the trust unnecessary, or when it is expedient that the trust should cease to exist, the State Government may, by notification, dissolve the trust : Provided that before issuing a notification under this sub-section, the State Government shall give a reasonable opportunity to the trust for showing cause against the proposed dissolution and shall consider the explanation and objections, if any, of the trust. (2) Upon the publication of a notification under sub-section (1), dissolving a trust, the following consequences shall ensue :— (a) all trustees including the chairman of the trust shall, as from the date of such publication, be deemed to have ceased to be trustees of the trust; (b) all properties, funds and dues which are vested in or realizable by the trust and the chairman, shall vest in the State Government and be realizable through such authority, as the State Government may, by notification, specify; and the State Government shall bear all the legal liabilities of the trust subsisting at the date of its dissolution; (c) for the purpose of completing the execution of any scheme, sanctioned under this Act which has not been fully executed by the trust, and of realizing properties, funds and dues referred to in clause (b), the functions of the trust and the chairman under this Act shall be discharged by such authority as the State Government may, by notification, specify; and (d) the authority referred to in clause (b) shall keep separate accounts of all moneys respectively received and expended by it under this Act, until all loans raised thereunder have been repaid and until all other liabilities referred to in clause (b) have been duly met: Provided that where a trust has been dissolved under sub-section (1) within the territorial jurisdiction of a municipality and the properties, funds and dues have vested in the Government, it may transfer the property, funds and dues of the dissolved trust to the municipality which shall also bear all the legal liabilities of the trust subsisting at the date of its dissolution and further the employees of such trusts whose properties, funds and dues have been transferred to the municipality, after dissolution, shall be transferred to other trusts on any post carrying same scale of pay. (3) All properties, funds and dues, which had vested in the authority and had become realizable by the authority on the dissolution of the trust and all liabilities which were enforceable against the authority before the commencement of this Act, shall re-vest in the State Government and be realizable and enforceable through such authority as the State Government may, by notification, specify and such authority shall discharge the function of completion of the sanctioned schemes. (4) After all functions referred to in clause (c) of sub-section (2) or sub-section (3) have been duly discharged — (a) the properties, funds and dues vested in or realizable by the State Government through such authority as the State Government may, by notification, specify under clause (b) of sub-section (2) or sub-section (3), shall stand transferred to, vested in, and be realisable by the authority; (b) all liabilities enforceable against the State Government under clause (b) of sub-section (2) or sub-section (3) or incurred by it shall be enforceable against the committee. (5) Notwithstanding anything contained in this Act, the State Government may, in accordance with the provisions of section 4, reconstitute a trust within a period of six months within any local area in which a trust was dissolved under sub-section (1) of section 105 and upon such reconstitution all the provisions of this Act shall apply to the reconstituted trust as if it were a trust created and constituted under sections 3 and 4. (6) From the date of reconstitution of the trust — (a) any scheme the execution of which under clause (c) of sub-section (2) or sub-section (3) to be completed by the authority referred to in the said sub-sections shall, if such execution has not been completed before the date of reconstitution of the trust, stand transferred from such authority to the reconstituted trust and such trust shall take all steps for the completion of such scheme; (b) all properties, funds and dues in respect of any such scheme, which under clause (b) of sub-section (2) or sub-section (3) were vested in the State Government or made realizable by the authority referred to in the said sub-sections, shall revest in and be realizable by the trust and the chairman, as the case may be; (c) all liabilities in respect of any such scheme which were enforceable against the State Government shall be enforceable only against the reconstituted trust; (d) the authority referred to in sub-sections (2) and (3) of this section, shall render to the reconstituted trust in respect of any such scheme, complete accounts of all moneys referred to in clause (d) of sub-section (2) of this section and if anything is found to be payable it shall be paid by the authority to the reconstituted trust; and (e) the authority referred to in sub-section (2) or sub-section (3) of this section, may by order transfer such employees as are, in its opinion, required for the execution of any such scheme or for due discharge of obligation by the reconstituted trust.