Rectification of defects disclosed in audit and order of surcharge against trustee, etc.

(1) The Commissioner, Joint Commissioner, Deputy Commissioner or Assistant 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 Commissioner, Joint Commissioner, Deputy Commissioner or Assistant Commissioner, as the case may be. (2) If, on a consideration of the audit report and the report of the trustee and after such inquiry as may be necessary, the Commissioner, Joint Commissioner, Deputy Commissioner or Assistant Commissioner, as the case may be, thinks that the trustee or any other person was guilty of irregular, illegal or improper expenditure, or of loss or waste of money or other property thereof caused by failure to recover moneys due or other property belonging to the religious institution or by neglect or misconduct or misapplication or collusion or fraudulent transactions or breach of trust, the Commissioner, Joint Commissioner, Deputy Commissioner or Assistant Commissioner, as the case may be, 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 spent or the amount or value of the property so lost or wasted and direct the trustee or such person to pay within a specified time such amount or value personally: Provided that if, in respect of any expenditure or dealing with the property of the institution, the trustee or such person had obtained the directions of the Commissioner, Joint Commissioner, Deputy Commissioner or Assistant Commissioner, as the case may be, and had acted in accordance with such directions, he shall not be held liable. (3) The Commissioner, Joint Commissioner , Deputy Commissioner or Assistant Commissioner as the case may be shall forward a copy of the order under sub-section (2) with the reasons for the same by registered post to the trustee or person concerned. (4) 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 which shall pass such orders as they think fit. (5) Neither the Court, nor the Government to which or to whom an application or appeal is made under sub-section (4) shall have power to stay the operation of the order pending the disposal of the application or appeal. (6) 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. (7) 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. (8) Where the Commissioner is satisfied that the trustee or other person with intent to defeat or delay the execution of any order that may be made under sub-section (2) or sub-section (4)— (a) is about to dispose of the whole or any part of his property ; or (b) is about to remove the whole or any part of his property from the jurisdiction of the Commissioner, the Commissioner may, unless adequate security is furnished, apply to the Court pending the decision of the Court or Government for conditional attachment of the said property or such part thereof, as he thinks necessary.