Title : CHARITABLE AND RELIGIOUS TRUSTS ACT,1920

Year : 1920

Act : 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.