THE
CHARITABLE AND RELIGIOUS TRUSTS ACT, 1920
(Act.
XIV of 1920)
.
3. Power to apply to the Court in respect of
trusts of a charitable or religious nature.
4. Contents and verification of petition
6. Failure of trustee to comply with order under Section 5.
7. Powers of trustee to apply for direction.
8. Costs of petition under this Act.
9. Savings.
10. Power of Courts as to costs in certain suits against
trustees of charitable and religions trusts.
11. Provisions of the Code of Civil Procedure to apply.
THE CHARITABLE AND
RELIGIOUS TRUSTS ACT, 1920
(Act.
XIV of 1920)
An Act to provide more effectual control over
the administration of Charitable and Religious Trusts.
Whereas it is expedient to provide facilities
'or 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) The Act may be called the Charitable and
Religious Trusts Act, 1920.
(2) It
extends to the whole of India except the State of Jammu and Kashmir
Provided that the Government of any State may,
by notification in the Official Gazette direct that this Act, or any specified
parts thereof, shall. not extend to the State or any specified area therein or
to any specified trust or class of trusts.
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 allo 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 object of the trust, and 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 wirting and shall be signed and verified
in the manner prescribed by the Code of Civil Procedure, 1908, for signing and
verifying plaints.
(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, 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 which 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.
(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 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 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 direction-
(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 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 subsection (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 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 person as it
thinks fit:
Provided that no such order shall be made
against any person (other than the practitioner) 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;
(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
(c)
If a scheme for the administration of the trust property has been
settled or proved 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 suits instituted under Section 14 of the Religious
Endowments Act, 1863, or 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 enquiry 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.
(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, -
(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 summons 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.