Charitable trust

2020 PLD 507 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Charitable trustCy-près, doctrine of

Applicability and scope.

2020 MLD 440 KARACHI-HIGH-COURT-SINDH Judicial Precedent

S. 10Trusts Act (II of 1882), S. 5Qanun-e-Shahadat (10 of 1984), Art. 114Limitation Act (IX of 1908), Art. 181Evacuee propertyCharitable trustNon-claimant occupierPetitioners were owners of evacuee property and were aggrieved of cancelation of their ownershipAuthorities claimed that land in question was designated as charitable property by previous Hindu ownerValidity

Trust could not be created for an immovable property without an instrument or trust deed duly registered under S. 5 of Trusts Act, 1882

Authorities only relied upon entry appearing in easement column of extract of Property Register Card but they could not produce any concrete evidence that a trust was ever in existence at subject property

Hindu owner might have allowed to take water from his bore-well as 'Ishta' or sacrificial gifts to surrounding tenements and as soon as bore-well vanished, land on which bore-well was available could be used by its owner in any manner

Such act of allowing to take water was a sacrificial gift and such offering could not create a trust unless owner had manifested creation of a charitable trust by a non-testamentary instrument in writing and signed by him and got same registered under S. 5 of Trusts Act, 1882

Property in question was a chunk comprising as many as 11 survey numbers

Amongst them, there was an entry in Property Register Card of only one survey number showing words 'well charitable'

On basis of such entry alone authorities unjustifiably declared that entire chunk, i.e., remaining survey numbers also as Evacuee Trust Property

Save to that entry, there was nothing on record to favour authorities regarding their plea that subject property belonged to a trust set up by previous Hindu owner of property

Petitioners were enjoying property for such a long time with their full rights and even their properties were mortgaged with House Building Finance Corporation

During all such activities, authorities remained in deep slumber, as such any claim on their behalf was otherwise not maintainable on grounds of laches

High Court set aside orders cancelling ownership of petitioners as they were not sustainable in law

Constitutional petition was allowed in circumstances.

2017 PLD 718 SUPREME-COURT Judicial Precedent

Ss. 2(xxiii)(i) & 3Pakistan Telecommunication (Re-organisation) Act (XVII of 1996), Ss. 2(w) & 44Societies Registration Act (XXI of 1860), PreambleCompanies Act (VII of 1913), S. 26 [since repealed]Income Tax Ordinance (XXXI of 1979), S. 47 [since repealed]"Sahib-e-nisab"ScopeCharitable trustZakat, exemption fromPre-requisitesPakistan Telecommunication Employees Trust ("the Trust")

Institution, fund, trust, endowment or society was exempt from deduction of zakat in terms of S. 2(xxiii)(i) of the Zakat and Ushr Ordinance, 1980 if it met two conditions; first, it was registered as a charitable organization under the Societies Registration Act, 1860, or as a company under S.26 of the Companies Act, 1913 [since repealed], or registered or approved as a charitable or social welfare organization under any other law for the time being in force; and, secondly, it was approved by the (erstwhile) Central Board of Revenue for the purposes of S.47 of the Income Tax Ordinance, 1979 (since repealed)

Pakistan Telecommunication Employees Trust ("the Trust") was not registered as a charitable or social welfare organization under any relevant law

Besides the Trust was not involved in any social welfare or charitable activity, rather it only provided pension to the retiring employees of the erstwhile Pakistan Telephone and Telegraph Department

Pakistan Telecommunication Employees Trust was not a trust that fell within the provisions of S.2(xxiii)(i) of the Zakat and Ushr Ordinance, 1980, and was thus not excluded from the definition of sahib-e-nisab

Trust was liable to compulsory payment of zakat under S.3 of the Zakat and Ushr Ordinance, 1980

Appeal was dismissed accordingly.

2013 MLD 640 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Charitable trustCypres doctrine ofApplicability

Such doctrine would apply in a case where original object of such trust could not be achieved, but an object as nearly as possible similar thereto could be achieved

Doctrine of cypres would not apply to save trust, when neither original object nor object similar thereto might be achieved

Principles.