Section 6 of CEA : Section 6: Mode Of Applying For Vesting Orders And Schemes

Explanation using Example

Imagine a group of residents in a community want to establish a trust to maintain a local park. The park is already held in trust for the purpose of providing green space for recreation. One of the trustees, Mr. Sharma, has been actively involved in the administration of the trust. To ensure proper management and potential tax benefits, Mr. Sharma and the majority of the other trustees decide to apply to have the property vested in the Treasurer of Charitable Endowments.

In this scenario, Section 6(1)(a) of The Charitable Endowments Act, 1890 would apply, as the property (the park) is already held in trust for a charitable purpose (recreation and green space). Mr. Sharma, along with the majority of the trustees, would be responsible for making the application to have the trust property vested in the Treasurer of Charitable Endowments for better administration.

Now, suppose that Mr. Sharma passes away, and his executor takes over the administration of the trust on his behalf. According to Section 6(2), Mr. Sharma's executor would be deemed to be a person acting in the administration of the trust and could continue the application process.

Furthermore, if the Uttar Pradesh amendment applies, and it is later found that the trustees, including Mr. Sharma's executor, are not managing the park's trust properly, the State Government could intervene under Section 6-A. It could issue a notice to the trustees to show cause why the existing scheme should not be modified or replaced if they are found to be wasting or mal-administering the trust property.