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CHARITABLE ENDOWMENTS ACT

Ministry of Law and Justice

Act nº 6 of 1890


  • Act nº 6 of 1890

Preamble

THE CHARITABLE ENDOWMENTS ACT, 1890

[Act, No. 6 of 1890] 1

[17th March, 1890]

PREAMBLE

An Act to provide for the vesting and administration of property held in trust for charitable purposes.

whereas it is expedient to provide for the vesting and administration of property held in trust for charitable purposes; It is hereby enacted as follows:-

1.This Act shall not apply to any wakf to which the Wakf Act, 1954 (29 of 1954) applies, vide section 69.

For Statement of Objects and Reasons, see Gazette of India, 1889, Pt. V,p. 137; for Report of the Select Committee, see Gazettee of India, 1890, p. 65; and for Proceedings in Council, see Gazettee of India, 1889, Pt. VI, pp. 117 and 190, and Gazettee of India, 1890, Pt. Vi, p. 37.

This Act has been declared to be in force in the Sonthal Parganas by the Sonthal Parganas Settlement Regulation, 1872 (3 of 1872), section 3: in the Khondmals District by the Khondmals Laws Regualtion, 1936 (4 of 1936), section 3 and Schedule; and in the Angul District by the Angul Laws Regulation, 1936 (5 of 1936), section 3 and Schedule It has also been extended to Berar by the Berar Laws Act, 1941 (4 of 1941).

This Act has been amended in its application to Bengal by the Bengal Wakf Act, 1934 (Ben. Act 13 of 1934); Bihar by Bihar Act 8 of 1948. Act 1 of 1951and Act 16 of 1954; U.P. by U.P. Acts 20 of 1950 and 37 of 1950.


Section 1. Title, extent and commencement

(1) This Act may be called the Charitable Endowments Act,1890.

2. It extends to the whole of India,1 [except the State of Jammu andKashmir], 2 [* * *]; and

(3) It shall come into force on the first day of October,1890.

1.Substituted by Act 3 of 1951, section 3 and Schedule, for "except PartB States".

2.The words "inclusive of British Baluchistan" omitted by the A.O. by1948.


Section 2. Definition

In this Act "charitable purpose" includes relief of the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship.

Section 3. Appointment and incorporation of treasurer of Charitable Endowments

1 [(1) The Central Government may appoint an officer of theGovernment by the name of his office to be treasurer of Charitable Endowmentsfor India, and the Government of any State may appoint an officer of theGovernment by the name of his office to be tresurer of Charitable Endowmentsfor the State.]

(2) Such treasurer shall, for the purposes of taking,holding and transferring movable or immovable property under the authority ofthis Act, be a corporation sole by the name of the treasurer of CharitableEndowments for 2 [India or,as the case may be, the State], and, as suchtreasurer, shall have perpetual succession and a corporate seal, and may sueand be sued in his corporate name.

1.Substituted by the A.O. 1937, for the original sub-section.

2.Substituted by the A.O. 1937, for "the territories subject to theLocal Government"


Section 3A. Definition of "appropriate Government", etc.

1 [3A. Definition of "appropriate Government", etc.--

In the subsequent provi­sions of this Act " the appropriate Government" means, as respects a charitable endowment, the objects of which do not extend beyond a single State and are not objects to which the executive authority of the Central Government extends, the Government of the State, and as respects any other charitable endowment the Central Government.]

1. Inserted by the A.O. 1937


Section 4. Orders vesting property in treasurer

(1) Where any property is held or is to be applied intrust for charitable purpose, the 1 [appropriate Government],if it thinks fit, may, on application made as hereinafter mentioned, andsubject to the other provisions of this section, order, by notification in theOfficial Gazette, that the property be vested in the treasurer of CharitableEndowments on such terms as to the application of the property or the incomethereof as may be agreed on between the [appropriate Government] and the person orpersons making the application, and the property shall thereupon so vestaccordingly.

(2) When any property has vested under this section in atreasurer of Charitable Endowments, he is entitled to all documents of titlerelating thereto.

2 [***]

(4) An order under this section vesting property in atreasurer of Charitable Endowments shall not require or be deemed to requirehim to administer the property, or impose or be deemed to impose upon him theduty of a trustee with respect to the administration thereof.

1.Substituted by the A.O. 1937 for "Local Government".

2.Sub-section (3) omitted, by the A.O. 1937.


Section 5. Schemes for administration of property vested in the treasurer

(1) On application made as hereinafter mentioned, and withthe concurrence of the person or persons making the application, the 1 [appropriate Government] if it thinks fit, may settle a scheme for theadministration of any property which has been or is to be vested in thetreasurer of Charitable Endowments, and may in such scheme appoint, by name oroffice, a person or persons, not being or including such treasurer, toadminister the property.

(2) On application made as hereinafter mentioned, and withthe concurrence of the person or persons making the application, the 1 [appropriate Government] may, if it thinks fit, modify any scheme settledunder this section or substitute another scheme in its stead.

(3) A scheme settled, modified or substituted under thissection shall, subject to the other provisions of this section come intooperation on a day to be appointed by the 1 [appropriate Government]in this behalf, and shall remain in force so long as the property to which itrelates continues to be vested in the treasurer of Charitable Endowments oruntil it has been modified or another such scheme has been substituted in itsstead.

(4) Such a scheme, when it comes into operation, shallsupersede any decree or direction relating to the subject-matter thereofinsofar as such decree or direction is in any way repugnant thereto, and itsvalidity shall not be questioned in any court, nor shall any court give, incontravention of the provisions of the scheme or in any way contrary or inaddition thereto, a decree or direction regarding the administration of theproperty to which the scheme relates:

2 [Provided that nothing in this sub-section shall be construedas precluding a court from inquiring whether the Government by which a schemewas made was the appropriate Government.]

(5) In the settlement of such a scheme effect shall begiven to the wishes of the author of the trust so far as they can be ascertained,and, in the opinion of the 3 [appropriateGovernment], effect can reasonably be given tothem.

(6) Where a scheme has been settled under this section forthe administration of property not already vested in the treasurer ofCharitable Endowments, it shall not come into operation until the property hasbecome so vested.4

1. Substituted by the A.O. 1937 for "Local Government".

2. Inserted by the A.O. 1937.

3. Substituted by the A.O. 1937, for "Local Government".

4. A proviso to section 5, applicable only to Bengal, has been added bythe Bengal Wakf Act, 1934 (Ben. 13 of 1934), section 79.


Section 6. Mode of applying for vesting orders and schemes

(1) The application referred to in the two last foregoing sections must be made,--

(a) If the property is already held in trust for a charitable purpose, then by the person acting in the administration of the trust, or, where there are more persons than one so acting, then by those persons or a majority of them; and

(b) If the property is to be applied in trust for such a purpose then by the person or persons proposing so to apply it.

(2) For the purposes of this section the executor or administator of a deceased trustee of property held in trust for a charitable purpose shall be deemed to be a person acting in the administration of the trust. 1

1. A new sub-section (3), application only to Bengal, has been added by the Bengal, has been added by the Bengal Wakf Act, 1934 (Ben. 13 of 1934), section 80


Section 7. Exercise by Governor General in Council of Powers of Local Government

[Omitted by the A.O. 1937].

Section 8. Bare trusteeship of treasurer

(1) Subject to the provisions of this Act, a treasurer of Charitable Endowments shall not, as such treasurer, act in the administration of any trust whereof any of the property is for the time being vested in him under this Act.

(2) Such treasurer shall keep a separate account of each property for the time being so vested insofar as the property consists of securities for money, and shall apply the property or the income thereof in accordance with the provision made in that behalf in the vesting order under section 4 or in the scheme, if any, under section 5, or in both those documents.

(3) In the case of any property so vested other than securities for money, such treasurer shall, subject to any special order which he may receive from the authority by whose order the property became vested in him, permit the persons acting in the administration of the trust to have the possession, management and control of the property and the application of the income thereof, as if the property had been vested in them.

Section 9. Annual publication of list of properties vested in treasurer

A treasurer of Charitable Endowments shall cause to bepublished annually in the Official Gazette, at such time as the 1 [appropriate Government] may direct, a list of all properties for the timebeing vested in him under this Act and an abstract of all accounts kept by himunder section 2 of the last foregoing section.

1.Substituted by the A.O. 1937, for "Local Government".


Section 10. Limitation of functions and powers of treasurer

(1) A treasurer of Charitable Endowments shall always bea sole trustee, and shall not, as such treasurer, take or hold any propertyotherwise than under the provisions of this Act, or, subject to thoseprovisions, transfer any property vested in him except in obedience to a decreedivesting him of the property, or in compliance with a direction in that behalfissuing from the authority by whose order the property became vested in him.

(2) Such a direction may require the treasurer to sell orotherwise dispose of any property vested in him, and, with the sanction of theauthority issuing the direction, to invest the proceeds of the sale or otherdisposal of the property in any such security for money as is 1 [specified in the direction], or in the purchase of immovable property.

(3) When a treasurer of Charitable Endowments is divested,by a direction of 2 [theappropriate Government] under this section, ofany property, it shall vest in the person or persons acting in theadministration thereof and be held by him or them on the same trusts as thoseon which it was held by such treasurer.

1.Substituted by the A.O. 1937, for "mentioned in section 4, sub-section(3), clause (a), (b), (c), (d), or (e)".

2.Substituted by the A.O. 1937 for "the Local Government or the GovernorGeneral in Council".


Section 11. Provision for continuance of office of treasurer in certain contingencies

If the office held by an officer of the Government who hasbeen appointed to be treasurer of Charitable Endowments is abolished or itsname is changed, the 1 [appropriateGovernment] may appoint the same or anotheroffice of the Government by the name of his office to be such treasurer, andthereupon the holder of the latter office shall be deemed for the purposes ofthis Act to be the successor in office of the holder of the former office.

1.Substituted by the A.O. 1937 for "Local Government".


Section 12. Transfer of property from one treasurer to another

1 [12. Transfer of property from one treasurer to another.--

If by reason of any alteration of areas or by reason of the appointment of a treasurer of Charitable Endowments for India or for any State for which such a treasurer has not previously been appointed or for any other reason it appears to the Central Government that any property vested in a treasurer of Charitable Endowments should be vested in another such trea­surer, that Government may direct that the property shall be so vested and thereupon it shall vest in that other treasurer and his successors as fully and effectually for the purposes of this Act as if it had been originally vested in him under this Act.]

1. Substituted by the A.O. 1937 for the original section.


Section 13. Power to make rules

1 [2 [(1)]] The3 [appropriate Government] 4 [by notification in the official Gazette] may make rules consistent with this Act for-

(a) prescribing the fees to be paid to the Government inrespect of any property vested under this Act in a treasurer of CharitableEndowments;

(b) regulating the cases and the mode in which schemes orany modification thereof are to be published before they are settled or madeunder section 5;

(c) prescribing the forms in which accounts are to be keptby treasurers of Charitable Endowments and the mode in which such accounts areto be audited; and

(d) generally carrying into effect the purposes of thisAct.]

5 [(2) Every rule made by the State Government under this Actshall be laid, as soon as may be after it is made, before the StateLegislature.

(3) Every rule made by the Central Government under thisAct shall be laid, as soon as may be after it is made, before each House ofParliament, while it is in session, for a total period of thirty days which maybe comprised in one session or in two or more successive sessions, and if,before the expiry of the session immediately following the session or thesuccessive sessions aforesaid, both Houses agree in making any modification inthe rule or both Houses agree that the Rule should not be made, the rule shall thereafterhave effect only in such modified form or be of no effect, as the case may be;so, however, that any such modification or annulment shall be without prejudiceto the validity of anything previously done under that rule.]

1.Sub-section (1) omitted by the A.O. 1937.

2.Sub-section (2) renumbered as sub-section (1) by Act 56 of 1982,section 2.

3.Substituted by the A.O. 1937 for "Local Government".

4.Inserted by Act 56 of 1982, Section 2.

5.Inserted by Act 56 of 1982, section 2.