Charitable and Religious Trusts

THE CHARITABLE AND RELIGIOUS

TRUSTS ACT, 1920
1920: Act XIV
(XIV of 1920)
CONTENTS

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. Savings.

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 to apply.

12. Appeal.
 TEXT
1
THE CHARITABLE AND RELIGIOUS TRUSTS ACT, 1920
2
(XIV of 1920)
[2 April 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;
It is hereby enacted as follows:–

1. Short title and extent.– (1) This Act may be called the Charitable and Religious
Trusts Act, 1920.
3
(2) [It extends to the whole of 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.]
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2. [Interpretation.– In this Act:
(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
(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.

1
For Statement of Objects and Reasons, see Gazette of India, 1919 Part-V, p. 88; for Report of Select Committee, see ibid.,
1920, Part-V, p. 85; and for Proceedings in Council, see ibid., 1919, Part-VI, p. 879, and ibid., 1920, Part- VI, pp. 49 and 787.
2
The following Act of the Indian Legislative Council received the assent of the Governor General on the 20th March, 1920, and
published in the Punjab Gazette, Part-IV, dated 2nd April, 1920, pp. 49-50.
3
Substituted by the Charitable and Religious Trusts (Amendment) Act, 2012 (X of 2012), published in the Punjab Gazette
(Extraordinary), dated February 11, 2012, pp. 40137-40138, s. 2.
4
Ibid.
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
1
prescribed by the Code of Civil Procedure, 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
2
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 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
3
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 directions.– (1) Save as hereinafter provided in this
Act, any trustee of an express or constructive trust created or existing for a public purpose of

1
V of 1908.
2
V of 1908.
3
V of 1908.
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 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
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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
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the Societies Registration Act, 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
3
religious trusts.– (1) In any suit instituted [* * * * * * * *] under section 92 of the Code of
4
Civil Procedure, 1908 , the Court trying such suit may, if, on application of the plaintiff and

1
V of 1908.
2
XXI of 1960.
3
Omitted the words “under section 14 of the Religious Endowments Act, 1863, or” by the Federal Laws (Revision and
Declaration) Ordinance, 1981 (Ordinance No. XXVII of 1981), dated 8th July, 1981, published in the Gazette of Pakistan
(Extraordinary), dated July 8, 1981, pp. 1-517, s. 3 and Schedule II.
4
V of 1908.
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 to apply.– (1) The provisions of the
1
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 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.
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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.]

1
V of 1908.
2
Substituted by the Charitable and Religious Trusts (Amendment) Act, 1987 (XII of 1987), dated 29th March, 1987, published in
the Gazette of Pakistan (Extraordinary), dated November 16, 1987, pp. 1-62, s. 2.