[14 of 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 trust 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;
Comment: This Act is intended to provide
more effectual control over the administration of charitable and religious
trusts. AIR 1927 Pat 189
It is hereby enacted as follows: -
1. Short title and
extent
(1) This Act may be called the Charitable
and Religious Trusts Acts, 1920.
(2) It extends to the whole of India
except the State of Jammu and Kashmir:
PROVIDED that the Government at any State
may, be notification in the Official Gazette, direct that this Act,
or any specified part thereof, shall not extend to that State 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 or any other Court empowered in that behalf by
the State 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 any of these matters, and
(2) directing that the accounts of the
trusts 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 (5 of 1908),
for signing and verifying plaints.
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 (5 of 1908), for signing and verifying pleadings.
(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 (5 of 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,
advise 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 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 notification of the petition and
had a reasonable opportunity of being heard thereon.
9. Saving
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 (5 of 1908), is pending in respect of the trust in
question;
(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 (21 of 1860); or
(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 under section l4 of the Religious Endowments Act,
1863, (20 of 1863) or under section 92 of the Code of Civil
Procedure, 1908 (5 of 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 trustee of the
trust to which the suit relates such sum as such Court considers
sufficient to meet such expenditure in whole or in part.
(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
(1) The provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to-
(a) the proof of facts by affidavit,
(b) the enforcing of the attendance of
any person and his examination 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 notice 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.