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Section 10 of The Charitable Endowments Act, 1890

(1)A treasurer of Charitable Endowments shall always be a sole trustee, and shall not, as such treasurer, take or hold any property otherwise than under the provisions of this Act, or, subject to those provisions, transfer any property vested in him except in obedience to a decree divesting him of the property, or in compliance with a direction in that behalf issuing from the authority by whose order the property became vested in him.
(2)Such a direction may require the treasurer to sell or otherwise dispose of any property vested in him, and, with the sanction of the authority issuing the direction, to invest the proceeds of the sale or other disposal 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[the appropriate Government] under this section, of any property, it shall vest in the person or persons acting in the administration thereof and be held by him or them on the same trusts as those on which it was held by such treasurer.

Summary

The treasurer of Charitable Endowments must always act as a sole trustee, meaning they hold the property alone rather than jointly with others.
The treasurer is only allowed to take or hold property in accordance with the provisions of this Act, and cannot hold property in any other way.
The treasurer cannot transfer any vested property to someone else unless there is a court decree, meaning a court order, divesting them of the property, or a direction from the authority that originally ordered the property to be vested.
A direction from the vesting authority can require the treasurer to sell or dispose of the property, and with proper sanction, invest the proceeds into specified money securities or buy immovable property, like land or buildings.
If the appropriate Government directs that the treasurer be divested, meaning stripped of ownership, of any property, that property immediately transfers to the actual people running the charity's administration, to be held under the same original trust terms.

Practical examples

1In May 1912, a local authority wanted the treasurer to hold a playground jointly with three local councilmen. The treasurer declined because, under Section 10, the treasurer must always be a sole trustee and cannot hold property jointly with anyone else.

2In August 1928, a vesting authority decided that a run-down charity clinic building should be sold to fund a new hospital. The authority issued a written direction to the treasurer to sell the building for 15,000 rupees and invest the proceeds in government bonds. Under Section 10, the treasurer complied and reinvested the funds as directed.

3In November 1950, the appropriate Government decided that the treasurer should no longer hold a parcel of farmland. They issued a direction divesting the treasurer of it. Immediately, under Section 10, the legal ownership of the farmland vested in the charity's local managers, Mr. Sen and Mrs. Roy, who continued to run the farm under the same original trust terms.

FAQ

1. Under what circumstances can the treasurer transfer property vested in them?

The treasurer can only transfer property in obedience to a court decree divesting them of it, or in compliance with a direction from the authority that originally ordered the property to be vested in them.

2. Can the treasurer be directed to sell or dispose of vested property?

Yes. A direction from the vesting authority may require the treasurer to sell or otherwise dispose of the property.

3. If property is sold under a direction, how can the sale proceeds be invested?

With the sanction of the authority issuing the direction, the proceeds can be invested in a security for money specified in the direction, or used to purchase immovable property.

4. If the appropriate Government divests the treasurer of property under Section 10, where does that property go?

The property immediately vests in the person or persons who are running the administration of that charity, to be held on the same trusts as before.

Test yourself

Q1.What kind of trustee must the treasurer of Charitable Endowments always be under Section 10(1)?

Q2.To transfer vested property, what must the treasurer receive under Section 10(1)?

Q3.What can a direction from the vesting authority require the treasurer to do with vested property?

Q4.With proper sanction, where can the treasurer invest the proceeds of a property sale under Section 10(2)?

Q5.When the treasurer is divested of property by a direction of the appropriate Government, who does the property vest in?

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