Section 92 of CPC : Section 92: Public Charities

Explanation using Example

Imagine a scenario where there is a charitable trust that was established to operate a school for underprivileged children in a small town. Over the years, the town has developed, and the local government has built sufficient public schools, making the trust's school redundant. As a result, the trust's resources are underutilized, and the purpose of the trust is no longer as relevant as it once was.

In this situation, the Advocate-General or interested parties who have obtained the court's permission can file a suit under Section 92 of The Code of Civil Procedure, 1908. They might seek to have the court:

• Direct the trust to repurpose its assets to another charitable cause, such as a scholarship fund for higher education for the same target group, in line with the cy pres doctrine, which allows for the original intent of the trust to be honored in a different, yet related way.
• Appoint new trustees who are better equipped to handle the changed circumstances and to guide the trust towards fulfilling its adjusted objectives.
• Authorize the sale or mortgage of some of the trust's property to raise funds for the newly defined purpose.

This legal action would ensure that the trust continues to serve the public interest in an effective and relevant manner, despite the shift in the community's needs.