Thursday 7 January 2021

Section 92: Public charities

Code of Civil Procedure Section 91. Public nuisances and other wrongful acts affecting the public.

192. Public charities.—(1) In the case of any alleged breach of any express or constructive trust created for public purposes of a charitable or religious nature, or where the direction of the Court is deemed necessary for the administration of any such trust, the Advocate-General, or two or more persons having an interest in the trust and having obtained the 2[leave of the Court,] may institute a suit, whether contentious or not, in the principal Civil Court of original jurisdiction or in any other Court empowered in that behalf by the State Government within the local limits of whose jurisdiction the whole or any part of the subject-matter of the trust is situate to obtain a decree :—

(a) removing any trustee;

(b) appointing a new trustee;

(c) vesting any property in a trustee;

3[(cc) directing a trustee who has been removed or a person who has ceased to be a trustee, to deliver possession of any trust property in his possession to the person entitled to the possession of such property];

(d) directing accounts and inquiries;

(e) declaring what proportion of the trust property or of the interest therein shall be allocated to any particular object of the trust;

(f) authorizing the whole or any part of the trust property to be let, sold, mortgaged or exchanged;

(g) settling a scheme; or

(h) granting such further or other relief as the nature of the case may require.

(2) Save as provided by the Religious Endowments Act, 1863 (XX of 1863), 4[or by any corresponding law in force in 5[the territories which, immediately before the 1st November, 1956, were comprised in Part B States]], no suit claiming any of the reliefs specified in sub-section (1) shall be instituted in respect of any such trust as is therein referred to except in conformity with the provisions of that sub-section.

6[(3) The Court may alter the original purposes of an express or constructive trust created for public purposes of a charitable or religious nature and allow the property or income of such trust or any portion thereof to be applied cy pres in one or more of the following circumstances, namely :—

(a) where the original purposes of the trust, in whole or in part,—

(i) have been, as far as may be, fulfilled; or

(ii) cannot be carried out at all, or cannot be carried out according to the directions given in the instrument creating the trust or, where there is no such instrument, according to the spirit of the trust; or

(b) where the original purposes of the trust provide a use for a part only of the property available by virtue of the trust; or

(c) where the property available by virtue of the trust and other property applicable for similar purposes can be more effectively used in conjunction with, and to that end can suitably be made applicable to any other purpose, regard being had to the spirit of the trust and its applicability to common purposes; or

(d) where the original purposes, in whole or in part, were laid down by reference to an area which then was, but has since ceased to be, a unit for such purposes; or

(e) where the original purposes, in whole or in part, have, since they were laid down,—

(i) been adequately provided for by other means, or

(ii) ceased, as being useless or harmful to the community, or

(iii) ceased to be, in law, charitable, or

(iv) ceased in any other way to provide a suitable and effective method of using the property available by virtue of the trust, regard being had to the spirit of the trust.]

Note:

1. Section 92 shall not apply to any religious trust in Bihar, see Bihar Act 1 of 1951.

2. Subs. by Act 104 of 1976, s. 31, for “consent in writing of the Advocate-General”, (w.e.f. 1-2-1977).

3. Ins. by Act 66 of 1956, s. 9.

4. Ins. by Act 2 of 1951, s. 13.

5. Subs. by the A.O. (No. 2), 1956, for “a Part B State”.

6. Ins. by Act 104 of 1976, s. 31 (w.e.f. 1-2-1977).

Part in Red is original provisions from CPC reproduced here for reference. 

Code of Civil Procedure Section 93. Exercise of powers of Advocate-General outside presidency-towns.

Simplified Explanation:

Section 92 deals with the suit relating to the management of trust and properties of trust. As the suit can be filed only with the leave of the Court, it is not permissible to entertain the application under Order VII Rule 11 at the subsequent stage. Such an application should be entertained prior to grant of the leave by the Court.

Section 92 CPC (suit relating to management of trust) r/w Section 12 of civil courts act. (Jurisdiction)

Insofar as the suits under Section 92 are concerned, the District Courts and Subordinate Courts will have concurrent jurisdiction without reference to any pecuniary limits. A suit under Section 92 of the Code, where the value of subject-matter does not exceed Rs. 1 lakh, cannot be filed in any Court as Section 92 confers jurisdiction only on District Court and Subordinate Courts.

Judgment:

In Sri Jeyarom Educational Trust & Ors. V. A.G. Syed Mohideen & Ors., (2010) 2 SCC 513 the Supreme Court held that "District courts will have concurrent jurisdiction to Courts on which jurisdiction have been conferred by the State by a notification under Section 92(1)".

See also:

Order VII Rule 11:  Rejection of plaint.


Reference: http://www.nja.nic.in/16%20CPC.pdf

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