Updated: Saturday May 30, 2015/AsSabt Sha'ban 12, 1436/Sanivara Jyaistha 09, 1937, at 12:49:14 PM

The Charitable Endowments Act, 1890

1ACT No. VI OF 1890

 

 

[7th March, 1890]

 

An Act to provide for the Vesting and Administration of Property held in trust for charitable purposes.

 

WHEREAS it is expedient to provide for the vesting and administration of property held in trust for charitable purposes;

 

It is hereby enacted as follows:---

 

1. Title, extent and commencement.—(1) This Act may be called the Charitable

Endowments Act, 1890.

 

2[(2) It extends to the whole of Pakistan]; and

 

(3) It shall come into force on the first day of October, 1890.

 

2. Definition. In this Act, “charitable purpose” includes relief of the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship3.

 

3. Appointment and incorporation of Treasurer of Charitable Endowments.-

4[(1) The 5[Federal Government] may appoint an officer of the Government by the name of his office to be Treasurer a of Charitable Endowments for 6[ Pakistan], and the Government

 

1 For Statement of Objects and Reasons, see Gazette of India, 1889, Pt. V, p. 137 ; for Report of the Select Committee, see ibid.. 1890, p. 65; and for Proceedings in Council, see ibid., 1889, Pt. VI, pp. 117 and 190, and ibid., 1890, Pt. VI, p. 37.

It has been applied to Phulera in the Excluded Area of Upper Tanawal to the extent the Act is applicable in the N.W.F.P. subject to certain modi- fications ; and also extended to the Excluded Area of Upper Tanawal (N. W.F.P.) other than Phulera with effect from such date and subject to such modifications as may be notified, see N. W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulation, 1950.

This Act has been repealed in so far as it relates to charitable endowments the objects of which do not extend beyond the N.W.F.P. see the North- West Frontier Province Muslim Waqf Act, 1947 (22 of 1947), s. 37 and Sch.

It has been extended to the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order, 1950 (G. G. O. 3 of 1950); and applied in the

Federated Areas of Baluchistan, see Gazette of India, 1937, Pt. I, p. 1499.

See also s. 8 of. the Charitable Funds (Regulation of Collections) Act, 1953 (31 of 1953).

2 The existing sub-section (2) as amended by A. O., 1949, Arts. 3(2) and 4, the Burma Laws Act, 1898 (13 of 1898), s. 18 and Sch. V and Act (26 of 1951), s. 8, has been subs. by Ordinance 21 of 1960, s. 3 and 2nd Sch., (with effect from 14th October, 1955).

3 See also s. 8 of the Charitable Funds (Regulation of Collections) Act, 1953 (31 of 1953).

4 Subs. by A. O., 1937, for the original sub-section (1).

5 Subs. by F. A. O., 1975, Art. 2 and Table, for “Central Government”.

6 Subs. by A. O., 1949, Sch., for “India”.

of any Province may appoint an officer of the Government by the name of his office to be

Treasurer of Charitable Endowments for the Province.]

 

(2)  Such  Treasurer  shall,  for  the  purposes  of  taking,  holding  and  transferring moveable or immoveable property under the authority of this Act, be a corporation sole by the name of the Treasurer of Charitable Endowments for 1[2[ Pakistan] or, as the case may be, the Province], and, as such treasurer, shall have perpetual succession and a corporate seal, and may sue and be sued in his corporate name.

 

3[3A. Definition of “appropriate Government”, etc. In the subsequent provisions of this Act “the appropriate Government” means, as respects a charitable endowment, the objects of which do not extend beyond a single Province and are not objects to which the executive authority of the 4[Federal Government] extends, the Government of the Province, and as respects any other charitable endowment the 4[Federal Government.]

 

4. Orders vesting property in Treasurer.—(1) Where any property is held or is to be applied in trust for a charitable purpose, the 5[appropriate Government], if it thinks fit, may, on application made as hereinafter mentioned, and subject to the other provisions of this section, order, by 6notification in the official Gazette, that the property be vested in the Treasurer of Charitable Endowments on such terms as to the application of the property or the income thereof as may be agreed on between the 5[appropriate Government] and the person or persons making the application, and the property shall thereupon so vest accordingly.

 

(2) When any property has vested under this section in a Treasurer of Charitable

Endowments, he is entitled to all documents of title relating thereto.

 

7*                    *                     *                     *                     *                     *                     *

 

(4) An order under this section vesting property in a Treasurer of Charitable Endowments shall not require or be deemed to require him to administer the property, or impose or be deemed to impose upon him the duty of a trustee with respect to the administration thereof.

 

5.  Schemes for administration of  property vested in  the Treasurer.—(1) On application made as hereinafter mentioned, and with the concurrence of the person or persons making the application, the 5[appropriate Government], if it thinks fit, may

 

1Subs. by A. O., 1937, for “the territories subject to the L.G.

2Subs. by A. O., 1949, Sch; for “India”.

3Ins. by A. O., 1937.

4Subs, by F.A.O., 1975, Art. 2 and Table, for “Central Government”.

5Subs. by A. O., 1937, for “L.G.

6For notifications issued under this section in conjunction with s. 5, see different local R. & O.

7Sub-section (3) rep. by A. O., 1937.

settle a 1scheme for the administration of any property which has been or is to be vested in the Treasurer of Charitable endowments, and may in such scheme appoint, by name or office, a person or persons, not being or including such Treasurer, to administer the property.

 

(2) On application made as hereinafter mentioned, and with the concurrence of the person or persons making the application, the 2[appropriate Government] may, if it thinks fit, modify any scheme settled under this section or substitute another scheme in its stead.

 

(3) A scheme settled, modified or substituted under this section shall, subject to the other provisions of this section, come into operation on a day to be appointed by the 2[appro- priate Government] in this behalf, and shall remain in force so long as the property to which it relates continues to be vested in the Treasurer of Charitable Endowments or until it has been modified or another such scheme has been substituted in its stead.

 

 

(4) Such a scheme, when it comes into operation, shall supersede any decree or direction relating to the subject-matter thereof in so far as such decree or direction is in any way repugnant thereto, and its validity shall not be questioned in any Court, nor shall any Court give, in contravention of the provisions of the scheme or in any way contrary or in addition thereto, a decree or direction regarding the administration of the property to which the scheme relates:

 

3[ Provided that nothing in this sub-section shall be construed as precluding a Court from inquiring whether the Government by which a scheme was made was the appropriate Government.]

 

(5) In the settlement of such a scheme effect shall be given to the wishes of the author of the trust so far as they can be ascertained, and, in the opinion of the 2[appropriate Govern- ment], effect can reasonably be given to them.

 

(6) Where a scheme has been settled under this section for the administration of property not already vested in the Treasurer of Charitable Endowments, it shall not come into operation until the property has become so vested.

 

6. Mode of applying for vesting orders and schemes.-(1) The application referred to in the two last foregoing sections must be made,-

 

(a)    if the property is already held in trust for a charitable purpose, then by the person acting in the administration of the trust, or, where there are more persons than one so acting, then by those persons or a majority of them; and

 

1For notification setting a scheme for the Administration of the Pakistan Army Endowment Fund Trust Fund, see Gazette of Pakistan, 1958, Pt. I, pp. 18 and 20.

2 Subs. by A. O; 1937, for “L.G.

3 Proviso ins. ibid.

(b)    if the property is to be applied in trust for such a purpose, then by the person or persons proposing so to apply it.

 

(2) For the purposes of this section the executor or administrator of a deceased trustee of property held in trust for a charitable purpose shall be deemed to be a person acting in the administration of the trust.

 

7. [Exercise by Governor General in Council of powers of Local Government.]

Rep. by A.O., 1937.

 

8. Bare trusteeship of Treasurer.—(1)  Subject to the provisions of this Act, a Treasurer of Charitable Endowments shall not, as such Treasurer, act in the administration of any trust whereof any of the property is for the time being vested in him under this Act.

 

(2) Such Treasurer shall keep a separate account of each property for the time being so vested in so far as the property consists of securities for money, and shall apply the property or the income thereof in accordance with the provision made in that beha lf in the vesting order under section 4 or in the scheme,  if any, under section 5, or in both those documents.

 

(3) In the case of any property so vested other than securities for money, such Treasurer  shall, subject  to any special order which he may receive from the authority by whose  order  the  property  became   vested   in  him,  permit   the  persons   acting  in  the administration of the trust to have the possession, management and control of the property, and the application of the income thereof, as if the property had been vested in them.

 

9. Annual publication of list of properties vested in Treasurer. A Treasurer of Charitable Endowments shall cause to be published annually in the l[official Gazette], at such time as the 2[appropriate Government] may direct, a list of all properties for the time being vested in him under this Act and an abstract of all accounts kept by him under sub -section (2) of the last foregoing section.

 

10. Limitation of functions and powers of Treasurer.—(l) A Treasurer of Charitable Endowments shall always be a sale trustee, and shall not, as such Treasurer, take or hold any property otherwise  than under the provisions  of this Act, or subject to those provisions, transfer any property vested in him except in obedience to a decree dive sting him of the property, or in compliance with a direction in that behalf issuing from the authority by whose order the property became vested in him.

 

(2) Such a direction may require the Treasurer to sell or otherwise dispose of any property vested in him, and, with the sanction of the authority issuing the direction, to invest the

 

1Subs. by A. O., 1937, for “Local official Gazette”.

2Subs. ibid., for “L.G.

proceeds of the sale or other disposal of the property in any such security for money as is

l[specified in the direction], or in the purchase of immoveable property.

 

(3) When a Treasurer of Charitable Endowments is divested, by a direction of 2[the appropriate  Government]  under this section, of any property, it shall vest in the person or persons acting in the administration thereof and be held by him or them on the same trusts as those on which it was held by such Treasurer.

 

 

11. Provision for continuance of office of Treasure in certain contingencies. If the office held by an officer of the Government who has been appointed to be a Treasurer of Charitable Endowments is abolished or its name is changed, the 3[appropriate Government] may appoint the same or another officer of the Government by the name of his office to be such Treasurer, and thereupon the holder of the latter office shall be deemed for the purposes of this Act to be the successor in office of the holder of the former office.

 

4[12. Transfer of property  from one Treasurer  to another.  If by reason of any alteration of areas or by reason of the appointment of a Treasurer of Charitable Endowments for  5[Pakistan]  or for  any Province  for  which  such  a Treasurer  has  not  previously  been appointed or for any other reason it appears to the 6[Federal Government] that any property vested in a Treasurer of Charitable Endowments should be vested in another such Treasurer, that Government may direct that the property shall be so vested and thereupon it shall vest in that other Treasurer and his successors as fully and effectually for the purposes of this Act as if it had been originally vested in him under this Act .]

 

7[13. Power to frame forms and make rules. 8**           *             *                *                *                *

 

(2) The 9[appropriate Government] my make rules consistent with this Act for,---

 

(a)        prescribing the fees to be paid to the Government  in respect of any property   vested   under   this   Act   in   a   Treasurer   of   Charitable Endowments;

 

(b)         regulating   the   cases   and   the   mode   in   which   schemes   or   any modification thereof are to be published before they are settled or made under section 5;

 

 

1Subs. by A.O., 1937, for “mentioned in section 4, sub-section (3), clause (a), (b), (c), (d) or (e.

2Sub. ibid., for “the L. G. or the G. G. in C”.

3Subs. ibid., for “L. G.” which had been subs. for “G. G. in C.” by the Devolution Act, 1920 (38 of 1920), s. 2 and Sch. 1.

4Subs. by A.O., 1937, for the original s. 12.

5Subs. by A.O., 1949, Sch., for “India”.

6Subs. by F. A.O., 1975, Art. 2 and Table, for “Central Government”.

7Subs. by Act, 38 of 1920, s. 2 and Sch. I, for the original section 13.

8Sub-section (1) rep. by A.O.,1937.

9Subs. ibid., for “L. G.

(c)       prescribing the forms in which accounts are to be kept by Treasurers of Charitable Endowments and the mode in which such accounts are to be audited; and

 

(d)       generally carrying into effect the purposes of this Act]

 

14. Indemnity to Government and Treasure. No suit shall be instituted against the l[Government] in respect of anything done or purporting to be done under this act, or in respect of any alleged neglect or omission to perform any duty devolving on the Government under this Act, or in respect of the exercise of, or the failure to exercise, any power conferred by this Act on the Government, nor shall any suit be instituted against a Treasurer of Charitable Endowments except for divesting him of property on the ground of its being subject to a trust for a charitable purpose, or for making him chargeable with or accountable for the loss at misapplication of any property vested in  him,  or  the  income thereof, where the  loss  or  misapplication has  been occasioned by or through his wilful neglect or default.

 

2[15. Saving of provisions of the Official Trustees Act, 1913. Nothing in this Act shall be construed to impair the operation of the Official Trustees Act, 1913].

 

16.  [General  controlling  authority  of  Governor  General  in  Council.]  Rep.by  the

Devolution Act, 1920 (XXXVIII of 1920), s. 2 and Schedule. I, Pt. I.

 

1Subs. by A.O., 1961, Art. 2 (with effect from the 23rdMarch, 1956), for “Crown” which had been subs. by A.O; 1937, for “Govt.”.

2Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and 2nd Sch., for the existing section 15, which was amended by A. O., 1949 and Act 2 of 1913.

 

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