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[14 of 1920]
CHARITABLE
AND RELIGIOUS TRUSTS ACT,1920
1.
Short title and extent
2.
Interpretation
3.
Power to apply to the Court in respect of trusts of a charitable or religious
nature
4.
Contents and verification of petition
5.
Procedure on petition
6.
Failure of trustee to comply with order under section 5
7.
Powers of trustee to apply for directions
8.
Costs of petition under this Act
9.
Saving
10.
Power of Courts as to costs in certain suits against trustees of charitable and
religious trusts
11.
Provisions of the Code of Civil Procedure
12.
Barring of appeals
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;
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.
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