Charitable and Religious Trusts Act, 1920

This 1920 law gives people with an interest in a charitable or religious trust, and the trustees themselves, a way to get court oversight and guidance about how the trust is being run, without needing to file a full lawsuit. Section 3 lets anyone with an interest in an existing charitable or religious trust petition the relevant Court (the District Judge's Court, or the High Court in its ordinary civil jurisdiction, per Section 2) to order the trustee to provide details about the trust's nature, value, management, and income, or to have the trust's accounts examined and audited, though audit requests can't reach back more than three years before the petition.

Sections 4 and 5 set out how such a petition must be written and verified, in the manner used for plaints under the Code of Civil Procedure, 1908, and the procedure the Court follows: fixing a hearing date, notifying the trustee and other interested people, and deciding the matter, including staying proceedings if someone disputes the trust's existence and undertakes to file a formal suit within three months.

Section 6 says that if a trustee fails, without reasonable excuse, to comply with a Court order made under Section 5, this is treated as a breach of trust that can ground a lawsuit under Section 92 of the Code of Civil Procedure, 1908; importantly, such a suit can be filed without needing the Advocate General's prior consent, which is otherwise usually required for suits against public trusts.

Section 7 lets a trustee, not just outsiders, proactively petition the Court for its opinion, advice, or direction on any question about managing the trust property, and a trustee who acts in good faith on the Court's guidance is treated as having properly discharged their duty on that matter.

Section 8 gives the Court discretion over litigation costs, which can be charged to the trust's property or income. Section 9 bars petitions in certain situations, such as where a Section 92 suit is already pending, where the trust property is held by specific official bodies, or where a scheme for the trust's administration has already been approved by a competent authority. Section 12 allows an appeal to the High Court within ninety days of any order or direction under the Act.