Updated: Tuesday July 16, 2013/AthThulatha
Ramadan 09, 1434/Mangalavara
Asadha 25, 1935, at 07:47:35 PM
The Charitable and Religious
Trusts Act, 1920
ACT No XIV of 1920
[For Statement of Objects and
Reasons, see Gazette of India, 1919 Pt. V, p. 88; for Report of Select
Committee, see ibid., 1920, Pt. V, p. 85; and for Proceedings in Council, see
ibid., 1919, Pt. VI, p. 879, and ibid., 1920, Pt. VI, pp. 49 and 787.
This Act has been rep. in the
N.W.F.P. by the N.W.F.P Muslim Wakf Act, 1947 (N.-W.F.P. Act 22 of 1947), s. 37
and Sch. It has been 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. (
[20th March. 1920]
An Act to provide more effectual
control over the administration of Charitable and Religious Trusts
WHEREAS it is expedient to provide
facilities for the obtaining of information regarding trusts created for public
purposes of a charitable or religious nature, and to enable the trustees of
such trusts to obtain the directions of a Court on certain matters, and to make
special provision for the payment of the expenditure incurred in certain suits
against the trustees of such trusts; It is hereby enacted as follows:---
1. Short title and extent-(1) This Act may be called the
Charitable and Religious Trusts Act, 1920.
(2) It extends to [Subs. by
Ordinance 21 of 1960, s. 3 and 2nd Sch. with effect from the 14th October,
1955), for “all the Provinces and the Capital of the Federation” which had been
subs. by A. O., 1949, for “ the whole of
Provided that the [Subs. by A. O.,
1937, for “ G. G. in C.”] [Government of any Province] may, by notification in
the [Subs. ibid., for “ Gazette of India “.] [official Gazette] direct that
this Act, or any specified part thereof, shall [For notification directing that
this Act shall not extend to the N.-W.F.P., see Gen. R. & O.]not extend to
[Subs. by A.O., 1937, for “ any specified Province or area “.] [that Province
or any specified area therein] or to any specified trust or class of trusts.
2. Interpretation. In this Act, unless there is
anything repugnant in the subject or context, “the Court” means the Court of
the District Judge [Ins. by the Charitable and Religious Trust (Arndt.) Act,
1923 (41 of 1923), s. 2.] [or any other Court empowered in that behalf by the
[Subs. by A. O., 1937; for “ L. G. “.] [Provincial Government]] and includes
the High Court in the exercise of its ordinary original civil jurisdiction.
3. Power to apply to the Court in
respect of trusts of a charitable or religious nature. Save as hereinafter provided in
this Act, any person having an interest in any express or constructive trust
created or existing for a public purpose of a charitable or religious nature
may apply by petition to the Court within the local limits of whose
jurisdiction any substantial part of the subject-matter of the trust is situate
to obtain an order embodying all or any of the following directions namely:---
(1) directing the trustee to
furnish the petitioner through the Court with particulars as to the nature and
objects of the trust, and of the value, condition, management and application
of the subject-matter of the trust, and of the income belonging thereto, or as
to any of these matters, and
(2) directing that the accounts of
the trust shall be examined and audited:---
Provided that no person shall
apply for any such direction in respect of accounts relating to a period more
than three years prior to the date of the petition.
4. Contents and verification of
petition-(1) The
petition shall show in what way the petitioner claims to be interested in the
trust, and shall specify, as far as may be, the particulars and the audit which
he seeks to obtain.
(2) The petition shall be in
writing and shall be signed and verified in the manner prescribed by the Code
of Civil Procedure, 1908, for signing and verifying plaints.(V of 1908.)
5. Procedure on petition.-(1) If the Court on receipt of a
petition under section 3, after taking such evidence and making such inquiry,
if any, as it may consider necessary, is of opinion that the trust to which the
petition relates is a trust to which this Act applies and that the petitioner
has an interest therein, it shall fix a date for the hearing of the petition,
and shall cause a copy thereof, together with notice of the date so fixed, to
be served on the trustee and upon any other person to whom in its opinion
notice of the petition should be given.
(2) On the date fixed for the
hearing of the petition, or on any subsequent date to which the hearing may be
adjourned, the Court shall proceed to hear the petitioner and the trustee, if
he appears, and any other person who has appeared in consequence of the notice,
or who it considers ought to be heard, and shall make such further inquiries,
if any, as it thinks fit. The trustee may and, if so required by the Court,
shall, at the time of the first hearing or within such time as the Court may
permit, present a written statement of his case. If he does present a written
statement, the statement shall be signed and verified in the manner prescribed
by the Code of Civil Procedure, 1908, for signing and verifying pleadings. (V
of 1908.)
(3) If any person appears at the
hearing of the petition and either denies the existence of the trust or denies
that it is a trust to which this Act applies, and undertakes to institute
within three months a suit for a declaration to that effect and for any other
appropriate relief, the Court shall order a stay of the proceedings and, if
such suit is so instituted, shall continue the stay, until the suit is finally
decided.
(4) If no such undertaking is
given, or if after the expiry of the three months no such suit has been
instituted, the Court shall itself decide the question.
(5) On completion of the inquiry
provided for in sub-section (2), the Court shall either dismiss the petition or
pass thereon such other order as it thinks fit:
Provided that, where a suit has been instituted in accordance with the
provisions of sub-section (3), no order shall be passed by the Court which
conflicts with the final decision therein.
(6) Save as provided in this
section, the Court shall not try or determine any question of title between the
petitioner and any person claiming title adversely to the trust.
6. Failure of trustee to comply
with order under section 5. If a trustee without reasonable excuse fails to comply with an order
made under sub-section (5) of section 5, such trustee shall, without prejudice
to any other penalty or liability which he may incur under any law for the time
being in force, be deemed to have committed a breach of trust affording ground
for a suit under the provisions of section 92 of the Code of Civil Procedure,
1908 ; and any such suit may, so far as it is based on such failure, be
instituted without the previous consent of the Advocate General.
7. Powers of trustee to apply for
directions.--(1)
Save as hereinafter provided in this Act, any trustee of an express or
constructive trust created or existing for public purpose of a charitable or
religious nature may apply by petition to the Court, within the local limits of
whose jurisdiction any substantial part of the subject-matter of the trust is
situate, for the opinion, advice or direction of the Court on any question
affecting the management or administration of the trust property, and the Court
shall give its opinion, advice or direction, as the case may be, thereon;
Provided that the Court shall not
be bound to give such opinion, advice or direction on any question which it
considers to be a question not proper for summary disposal.
(2) The Court on a petition under
sub-section (1), may either give its opinion, advice or direction thereon
forthwith, or fix a date for the hearing of the petition, and may direct a copy
thereof, together with notice of the date so fixed, to be served on such of the
persons interested in the trust, or to be published for information in such
manner, as it thinks fit.
(3) On any date fixed under
sub-section (2) or on any subsequent date to which the hearing may be
adjourned, the Court, before giving any opinion, advice or direction, shall
afford a reasonable opportunity of being heard to all persons ‘appearing in
connection with the petition.
(4) A trustee stating in good
faith the facts of any matter relating to the trust in a petition under
sub-section (1), and acting upon the opinion, advice or direction of the Court
given thereon, shall be deemed, as far as his own responsibility is concerned,
to have discharged his duty as such trustee in the matter in respect of which
the petition was made.
8. Costs of petition under this
Act. The costs,
charges and expenses of and incidental to any petition, and all proceedings in
connection therewith, under the foregoing provisions of this Act, shall be in
the discretion of the Court, which may direct the whole or any part of any such
costs, charges and expenses to be met from the property or income of the trust
in respect of which the petition is made, or to be borne and paid in such
manner and by such persons as it thinks fit:---
Provided that no such order shall
be made against any person (other than the petitioner) who has not received
notice of the petition and had a reasonable opportunity of being heard thereon.
9. Savings No petition under the foregoing
provisions of this Act in relation to any trust shall be entertained in any of
the following circumstances, namely:---
(a) if a suit instituted in
accordance with the provisions of section 92 of the Code of Civil Procedure,
1908, is pending in respect of the trust in question ; (V of 1908).
(b) if the trust property is
vested in the Treasurer of Charitable Endowments, the Administrator-General,
the official Trustee, or any Society registered under the Societies
Registration Act, 1860; or (XXI of 1860)
(c) if a scheme for the
administration of the trust property has been settled or approved by any Court
of competent jurisdiction, or by any other authority acting under the
provisions of any enactment.
10.Power of Courts as to costs in
certain suits against trustees of Charitable and religious trusts-(1) In any suit instituted
[Certain words omitted by the Federal Laws (Revision and Declaration)
Ordinance, 1981 (27 of 1981), s. 3 and Sch. II.] under section 92 of the Code
of Civil Procedure, 1908, the Court trying such suit may, if, on application of
the plaintiff and after hearing the defendant and making such inquiry as it
thinks fit, it is satisfied that such an order is necessary in the public
interest, direct the defendant either to furnish security for any expenditure
incurred or likely to be incurred by the plaintiff in instituting and
maintaining such suit, or to deposit from any money in his hands as trustees of
the trust to which the suit relates such sum as such Court considers sufficient
to meet such expenditure in whole or in part. (V of 1908)
(2) When any money has been
deposited in accordance with an order made under sub-section (1), the Court may
make over to the plaintiff the whole or any part of such sum for the conduct of
the suit. Before making over any sum to the plaintiff, the Court shall take
security from the plaintiff for the refund of the same in the event of such
refund being subsequently ordered by the Court.
10. Power of Courts as to costs in
certain suits against trustees of Charitable and religious trusts-(1) In any suit instituted
[Certain words omitted by the Federal Laws (Revision and Declaration)
Ordinance, 1981 (27 of 1981), s. 3 and Sch. II.] under section 92 of the Code
of Civil Procedure, 1908, the Court trying such suit may, if, on application of
the plaintiff and after hearing the defendant and making such inquiry as it
thinks fit, it is satisfied that such an order is necessary in the public
interest, direct the defendant either to furnish security for any expenditure incurred
or likely to be incurred by the plaintiff in instituting and maintaining such
suit, or to deposit from any money in his hands as trustees of the trust to
which the suit relates such sum as such Court considers sufficient to meet such
expenditure in whole or in part. (V of 1908)
(2) When any money has been
deposited in accordance with an order made under sub-section (1), the Court may
make over to the plaintiff the whole or any part of such sum for the conduct of
the suit. Before making over any sum to the plaintiff, the Court shall take
security from the plaintiff for the refund of the same in the event of such
refund being subsequently ordered by the Court.
11. Provisions of the code of
civil procedure to apply-(1) The provisions of the Code of Civil Procedure, 1908, relating
to----(V of 1908.)
(a) the proof of facts by
affidavit,
(b) the enforcing of the
attendance of any person and his examination on oath,
(c) the enforcing of the
production of documents, and
(d) the issuing of commissions,
shall apply to all proceedings under this Act and the provisions relating to
the service of summonses shall apply to the service of notices thereunder.
(2) The provisions of the said
Code relating- to the execution of decrees shall, so far as they are
applicable, apply to the execution of orders under this Act.
12. Barring of appeals. No appeal shall lie from any
order passed or against any opinion, advice or direction given under this Act.
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