A.
Dear Client,
Charitable trusts are generally considered irrevocable once it is created and registered by the Settlor who losses the power to amend it if there exists no clause of amendment in the trust deed. In the absence of a clause of amendment or modification in the trust deed, the amendment requires to be done with the permission of a civil court. A resolution or amendment that alters the basic character of the trust will be considered invalid. A Civil Court will only allow amendments that are consistent with the original intent of the settlor, following the doctrine of Cy-pres. The trustees must approach a competent Civil Court to seek approval for the amendments filing an application under Section 26 of the Specific Relief Act, 1963, which allows for the rectification of an registered instruments/documents. On receipt of the court order, you have to register the amended deed and notify all relevant authorities, including the Income Tax Department. In case of an unregistered charitable trust, a new trust deed or a supplementary deed that incorporates the desired changes shall be drafted with the consent of all the trustees. The supplementary deed shall be executed by all trustees on the stamp paper of the appropriate value which shall be registered under the Registration Act by the Sub-Registrar of Assurances to make it legally valid and enforceable for all purposes and seek a certificate under the Income Tax Act. Since amendment of a trust deed is a complex legal process, it is recommended to consult with an Advocate to understand and ensure all procedural requirements to navigate the matter effectively.
Posted On 01-Sep-2025
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