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  "title": "CHARITABLE AND RELIGIOUS TRUSTS ACT, 1920",
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  "text": "Charitable and Religious Trusts \r\n1920: Act XIV \r\nCONTENTS \r\n1. Short title and extent. \r\n2. Interpretation. \r\n3. Power to apply to the Court in respect of trusts of a charitable or religious \r\nnature. \r\n4. Contents and verification of petition. \r\n5. Procedure on petition. \r\n6. Failure of trustee to comply with order under section 5. \r\n7. Powers of trustee to apply for directions. \r\n8. Costs of petition under this Act. \r\n9. Savings.  \r\n10. Power of Courts as to costs in certain suits against trustees of charitable and \r\nreligious trusts. \r\n11. Provisions of the Code of Civil Procedure to apply. \r\n12. Appeal. \r\nTHE CHARITABLE AND RELIGIOUS \r\nTRUSTS ACT, 1920 \r\n(XIV of 1920) \r\n \r\nTEXT \r\n1\r\nTHE CHARITABLE AND RELIGIOUS TRUSTS ACT, 1920 \r\n2\r\n(XIV of 1920) \r\n[2 April 1920] \r\nAn \r\nAct \r\nto provide more effectual control over the administration of Charitable and Religious Trusts \r\n WHEREAS it is expedient to provide facilities for the obtaining of information \r\nregarding trust created for public purposes of a charitable or religious nature, and to enable \r\nthe trustees of such trusts to obtain the directions of a Court on certain matters, and to make \r\nspecial provision for the payment of the expenditure incurred in certain suits against the \r\ntrustees of such trusts; \r\nIt is hereby enacted as follows:– \r\n1.  Short title and extent. – (1) This Act may be called the Charitable and Religious \r\nTrusts Act, 1920. \r\n(2) \r\n3\r\n[It extends to the whole of Punjab: \r\nProvided that the Government may, by notification in the official Gazette, direct that \r\nthis Act, or any specified part thereof, shall not extend to any specified area o r to any \r\nspecified trust or class of trusts.]  \r\n2. \r\n4\r\n[Interpretation.– In this Act: \r\n(a) “Court” means the Court of the District Judge or any other Court empowered \r\nin that behalf by the Government and includes the Lahore High Court in the \r\nexercise of its ordinary original civil jurisdiction; and \r\n(b) “Government” means Government of the Punjab.] \r\n3.  Power to apply to the Court in respect of trusts of a charitable or religious \r\nnature.– Save as hereinafter provided in this Act, any person having an interest in an y \r\nexpress or constructive trust created or existing for a public purpose of a charitable or \r\nreligious nature may apply by petition to the Court within the local limits of whose jurisdiction \r\nany substantial part of the subject-matter of the trust is situate to obtain an order embodying \r\nall or any of the following directions, namely:– \r\n(1) directing the trustee to furnish the petitioner through the Court with particulars \r\nas to the nature and objects of the trust, and of the value, condition, management and \r\napplication of the subject-matter of the trust, and of the income belonging thereto, or as any \r\nof these matters, and \r\n(2) directing that the accounts of the trusts shall be examined and audited: \r\n  Provided that no person shall apply for any such direction in r espect of accounts \r\nrelating to a period more than three years prior to the date of the petition. \r\n                                                           \r\n1For Statement of Objects and Reasons, see G azette of India, 1919 Part -V, p. 88; for Report of Select Committee, see  ibid., \r\n1920, 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. \r\n2The following Act of the Indian Legislative C ouncil received the assent of the Governor General on the 20 th March, 1920, and \r\npublished in the Punjab Gazette, Part-IV, dated 2nd April, 1920, pp. 49-50. \r\n3Substituted by the Charitable and Religious Trusts (Amendment) Act, 2012 (X of 2012), published in the Punjab Gazette \r\n(Extraordinary), dated February 11, 2012, pp. 40137-40138, s. 2. \r\n4Ibid. \r\n4. Contents and verification of petition. – (1) The petition shall show in what way the \r\npetitioner claims to be interested in the trust, and shall specify, as f ar as may be, the \r\nparticulars and the audit which he seeks to obtain. \r\n (2) The petition shall be in writing and shall be signed and verified in the manner \r\nprescribed by the Code of Civil Procedure, 1908\r\n1\r\n, for signing and verifying plaints. \r\n5. Procedure on petition.– (1) If the Court on receipt of a petition under section 3, after \r\ntaking such evidence and making such inquiry, if any, as it may consider necessary, is of \r\nopinion that the trust to which the petition relates is a trust to which this Act applies,  and that \r\nthe petitioner has an interest therein, it shall fix a date for the hearing of the petition, and \r\nshall cause a copy thereof, together with notice of the date so fixed, to be served on the \r\ntrustee and upon any other person to whom in its opinion n otice of the petition should be \r\ngiven. \r\n (2) On the date fixed for the hearing of the petition, or on any subsequent date to \r\nwhich the hearing may be adjourned, the Court shall proceed to hear the petitioner and the \r\ntrustee, if he appears, and any other per son who has appeared in consequence of the \r\nnotice, or who it considers ought to be heard, and shall make such further inquiries, if any, \r\nas it thinks fit. The trustee may and, if so required by the court, shall at the time of the first \r\nhearing or within such time as the Court may permit present a written statement of his case. \r\nIf he does present a written statement, the statement shall be signed and verified in the \r\nmanner prescribed by the Code of Civil Procedure, 1908\r\n2\r\n, for signing and verifying \r\npleadings. \r\n (3) If any person appears at the hearing of the petition and either denies the \r\nexistence of the trust or denies that it is a trust to which this Act applies, and undertakes to \r\ninstitute within three months a suit for a declaration to that effect and for any other \r\nappropriate relief, the Court shall order a stay of the proceedings and, if such suit is so \r\ninstituted, shall continue the stay until the suit is finally decided. \r\n (4) If no such undertaking is given, or if after the expiry of the three months no  \r\nsuch suit has been instituted, the Court shall itself decide the question. \r\n (5) On completion of the inquiry provided for in sub -section (2), the Court shall \r\neither dismiss the petition or pass thereon such other order as it thinks fit: \r\n Provided that, where a suit has been instituted in accordance with the provisions of \r\nsub-section (3), no order shall be passed by the Court which conflicts with the final decision \r\ntherein. \r\n (6) Save as provided in this section, the Court shall not try or determine any \r\nquestion of title between the petitioner and any person claiming title adversely to the trust. \r\n6. Failure of trustee to comply with order under section 5 .– If a trustee without \r\nreasonable excuse fails to comply with an order made under sub -section (5) of secti on 5, \r\nsuch trustee shall, without prejudice to any other penalty or liability which he may incur under \r\nany law for the time being in force, be deemed to have committed a breach of trust affording \r\nground for a suit under the provisions of section 92 of the Code of Civil Procedure, 1908\r\n3\r\n; \r\nand any such suit may, so far as it is based on such failure, be instituted without the previous \r\nconsent of the Advocate General. \r\n7. Powers of trustee to apply for directions.– (1) Save as hereinafter provided in this \r\nAct, any trustee of an express or constructive trust created or existing for a public purpose of \r\n                                                           \r\n1V of 1908.  \r\n2V of 1908. \r\n3V of 1908. \r\na charitable or religious nature may apply by petition to the Court, within the local limits of \r\nwhose jurisdiction any substantial part of the subject -matter of the trust is situate, for the \r\nopinion, advise or direction of the Court on any question affecting the management or \r\nadministration of the trust property, and the Court shall give its opinion, advice or direction, \r\nas the case may be, thereon: \r\n Provided that the  Court shall not be bound to give such opinion, advice or direction \r\non any question which it considers to be a question not proper for summary disposal. \r\n (2) The Court on a petition under sub -section (1), may either give its opinion, \r\nadvice or direction th ereon forthwith, or fix a date for the hearing of the petition, and may \r\ndirect a copy thereof, together with notice of the date so fixed, to be served on such of the \r\npersons interested in the trust, or to be published for information in such manner, as it thinks \r\nfit. \r\n (3) On any date fixed under sub -section (2) or any subsequent date to which the \r\nhearing may be adjourned, the Court, before giving any opinion, advice or direction, shall \r\nafford a reasonable opportunity of being heard to all persons appearing in connection with \r\nthe petition. \r\n (4) A trustee stating in good faith the facts of any matter relating to the trust in a \r\npetition under sub-section (1), and acting upon the opinion, advice or direction of the Court \r\ngiven thereon, shall be deemed, as far as  his own responsibility is concerned, to have \r\ndischarged his duty as such trustee in the matter in respect of which the petition was made. \r\n8. Costs of petition under this Act .– The costs, charges and expenses of and \r\nincidental to any petition, and all proc eedings in connection therewith, under the foregoing \r\nprovisions of this Act, shall be in the discretion of the Court, which may direct the whole or \r\nany part of any such costs, charges and expenses to be met from the property or income of \r\nthe trust in respe ct of which the petition is made, or to be borne and paid in such manner \r\nand by such persons as it thinks fit: \r\n Provided that no such order shall be made against any person (other than the \r\npetitioner) who has not received notice of the petition and had a r easonable opportunity of \r\nbeing heard thereon. \r\n9. Savings.– No petition under the foregoing provisions of this Act in relation to any \r\ntrust shall be entertained in any of the following circumstances, namely:– \r\n(a) if a suit instituted in accordance with the provisions of section 92 of the Code \r\nof Civil Procedure, 1908\r\n1\r\n, is pending in respect of the trust in question; \r\n(b) if the trust property is vested in the Treasurer of Charitable Endowments, the \r\nAdministrator-General, the Official Trustee, or any Society r egistered under \r\nthe Societies Registration Act, 1860\r\n2\r\n; or \r\n(c) if a scheme for the administration of the trust property has been settled or \r\napproved by any Court of competent jurisdiction, or by any other authority \r\nacting under the provisions of any enactment. \r\n10. Power of Courts as to costs in certain suits against trustees of charitable and \r\nreligious trusts.– (1) In any suit instituted \r\n3\r\n[* * * * * * * *] under section 92 of the Code of \r\nCivil Procedure, 1908\r\n4\r\n, the Court trying such suit may, if, on applicat ion of the plaintiff and \r\n                                                           \r\n1V of 1908. \r\n2XXI of 1960. \r\n3Omitted the words “ under section 14 of the Religious Endowments Act, 1863, or ” by the Federal Laws (R evision and \r\nDeclaration) Ordinance, 1981 (Ordinance No. XXVII of 1981), dated 8 th July, 1981, published in the Gazette of Pakistan \r\n(Extraordinary), dated July 8, 1981, pp. 1-517, s. 3 and Schedule II. \r\n4V of 1908. \r\nafter hearing the defendant and making such inquiry as it thinks fit, it is satisfied that such an \r\norder is necessary in the public interest, direct the defendant either to furnish security for any \r\nexpenditure incurred, or likely t o be incurred, by the plaintiff in instituting and maintaining \r\nsuch suit, or to deposit from any money in his hands as trustee of the trust to which the suit \r\nrelates such sum as such Court considers sufficient to meet such expenditure in whole or in \r\npart. \r\n (2) When any money has been deposited in accordance with an order made \r\nunder sub-section (1), the Court may make over to the plaintiff the whole or any part of such \r\nsum for the conduct of the suit. Before making over any sum to the plaintiff, the Court sh all \r\ntake security from the plaintiff for the refund of the same in the event of such refund being \r\nsubsequently ordered by the Court. \r\n11. Provisions of the Code of Civil Procedure to apply .– (1) The provisions of the \r\nCode of Civil Procedure, 1908\r\n1\r\n, relating to– \r\n(a) the proof of facts by affidavit, \r\n(b) the enforcing of the attendance of any person and his examination on oath, \r\n(c) the enforcing of the production of documents, and \r\n(d) the issuing of commissions, shall apply to all proceedings under this Act, an d \r\nthe provisions relating to the service of summonses shall apply to the service \r\nof notice thereunder. \r\n (2) The provisions of the said Code relating to the execution of decrees shall, so \r\nfar as they are applicable, apply to the execution of orders under this Act. \r\n12. \r\n2\r\n[Appeal.– Any person aggrieved by an order passed, or direction given under this \r\nAct, may, within ninety days of the date of such order or direction prefer an appeal to the \r\nHigh Court.] \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n                                                           \r\n1V of 1908. \r\n2Substituted by the Charitable and Religious Trusts (Amendment) Act, 1987 (XII of 1987), dated 29 th March, 1987, published in \r\nthe Gazette of Pakistan (Extraordinary), dated November 16, 1987, pp. 1-62, s. 2.",
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