The CHARITABLE AND RELIGIOUS TRUSTS ACT, 1920
(XIV OF
1920)
[20th March,
1920]
An
Act
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.
1[(2)
It extends to the whole of the Punjab:
Provided that the Government may, by
notification in the official Gazette, direct that this Act, or any specified
part thereof, shall not extend to any specified area or to any specified trust
or class of trusts].
(a)“Court” means the Court of the
District Judge or any other Court empowered in that behalf by the Government
and includes the Lahore High Court in the exercise of its ordinary original
civil jurisdiction; and
(b)“Government” means Government of the Punjab]
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
1 Section 1, sub-section (2) is
substituted by The Charitable and Religious Trusts (Amendment) Act, 2012 (X of
2012).
2 Section 2 is substituted by The
Charitable and Religious Trusts (Amendment) Act, 2012 (X of 2012)
(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 (v 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. Appeal.- Any person aggrieved by an order passed, or direction given
under this Act, may, within ninety days of the date of such order or direction
prefer an appeal to the High Court.
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