LAW OF EQUITY & TRUST
SUBMIITTED BY-
ANUBHAV VERMA
(A3211119002)
AAKRITI GUPTA
(A3211119012)
LAKSHAY AGGARWAL
(A3211119036)
ANKIT KUMAR
SHARMA (A3211119062)
Section A, Semester 9,
B.A. LL.B (H), Batch 2019-24
DOCTRINE OF CY-PRESS
Introduction-1
The Doctrine of Cy-près is a legal principle of great importance in Indian law, particularly
concerning charitable trusts. This doctrine allows a court to modify the terms of a charitable
trust when the original purpose becomes impossible, impractical, or illegal to fulfill. This
comprehensive report aims to provide an in-depth analysis of the Doctrine of Cy-près in the
context of Indian law, tracing its historical development, exploring its legal foundations,
practical applications, and challenges, all while considering relevant case law.
The Doctrine of Cy-près, derived from the Old French term "cy près comme possible"
meaning "as near as possible," is a legal concept rooted in principles of equity and justice. It
recognizes the need to adapt charitable trusts to changing circumstances while preserving the
donor's charitable intent.
The Doctrine of Cy-près holds paramount importance in Indian law, especially in cases
involving charitable trusts. It allows the court to ensure that charitable assets continue to
serve a charitable or public interest when the original purpose becomes unworkable. This
report aims to delve into how this doctrine is applied within the Indian legal framework.
Historical Development of the Doctrine of Cy-près2
The historical development of the Doctrine of Cy-près is crucial for understanding its
contemporary application. This section delves into the origins, evolution, and the influence of
common law principles in India.
The Doctrine of Cy-près has its roots in English common law and equity principles. The term
"cy-près" itself is borrowed from Old French and translates to "as near as possible." This
principle emerged as a response to the need for flexibility in handling charitable trusts when
the original charitable purpose could no longer be fulfilled due to changing circumstances or
other reasons.
In the Indian context, the Doctrine of Cy-près was not explicitly codified in its early stages.
Instead, it found its basis in the principles of equity, which were inherited from English
common law. Indian courts began applying cy-près principles to charitable trusts based on the
necessity to adapt to changing social, economic, and legal conditions.
Application of the doctrine in Indian Law-3
1
https://www.wallcliffslawfirm.com/uploads/newsletter-files/20210106154805169-Legal_Angle_-
_January_2021_-_Issue_01.pdf
2
https://repository.law.umich.edu/cgi/viewcontent.cgi?article=8912&context=mlr
3
https://blog.ipleaders.in/all-you-need-know-about-cy-pres-doctrine/#:~:text=The%20cy%2Dpres%20doctrine
%20is,to%20the%20next%20best%20use.
To gain a comprehensive understanding of the application of the Doctrine of Cy-près in
Indian law, it is essential to examine the relevant legislation and statutory provisions
governing charitable trusts, such as the Indian Trusts Act, 1882.
The Indian Trusts Act, 18824
The Indian Trusts Act, 1882, forms the foundation of the legal framework governing trusts in
India. While it does not explicitly mention the term "cy-près," it provides provisions that
empower the court to vary the terms of charitable trusts under certain circumstances.
Specifically, Section 92 of the Indian Trusts Act is of significance in this context.
Section 92 of the Indian Trusts Act, 1882
Section 92 of the Indian Trusts Act, 1882, confers jurisdiction upon the court to grant relief in
cases involving charitable trusts. This section empowers the court to intervene and vary the
terms of a charitable trust if:
The original purpose of the trust has become impossible or impractical to fulfill.
The trust's administration requires supervision or direction from the court.
The court deems it necessary to grant relief for the public benefit.
Section 92 of the Indian Trusts Act provides the legal basis for courts in India to apply the
Doctrine of Cy-près in cases where the original charitable purpose cannot be carried out
effectively.
Analysis of Landmark Cases
The practical application of the Doctrine of Cy-près in India is best understood through an
analysis of landmark cases in which the doctrine was invoked.
1. Charan Das v. Amir Khan (1922)5
This case, as discussed earlier, set a precedent for the application of the Doctrine of Cy-près
in India. It demonstrated that when the original charitable purpose becomes impractical or
impossible to fulfill, the court has the authority to modify the terms of the trust to ensure that
the donor's charitable intent is upheld.
2. Jagdish Chandra Gupta v. Kali Dasi (1959)
The case of Jagdish Chandra Gupta v. Kali Dasi illustrated how the Doctrine of Cy-près can
be used to adapt the terms of a trust when the original purpose, in this case, the maintenance
of a temple, can no longer be fulfilled. The court's decision ensured that the trust funds
continued to serve a charitable and religious purpose.
3. Narayana Gurukal v. Ayyappan (1993)
4
https://legalreadings.com/an-overview-of-the-doctrine-of-cypres/
5
https://lawyerservices.in/Charan-Das-Versus-Amir-Khan-1920-07-06
In Narayana Gurukal v. Ayyappan, the Kerala High Court invoked the Doctrine of Cy-près to
redirect the trust funds towards a purpose that was consistent with the donor's intent, even
though the original project could not be completed as intended. This case highlighted the
court's commitment to preserving the donor's charitable objectives.
4. Union of India v. Rallia Ram (1963)
The Supreme Court's decision in Union of India v. Rallia Ram showcased the court's
willingness to use the Doctrine of Cy-près to redirect trust income towards charitable and
educational purposes other than those originally specified. This case exemplified the court's
dedication to ensuring that charitable assets serve the broader public interest.
These cases demonstrate how the Doctrine of Cy-près has been applied in India to modify
charitable trusts in a manner that respects the donor's intent, serves the public interest, and
adapts to changing circumstances.
Comparison with Other Jurisdictions6
While the Doctrine of Cy-près is not unique to India and is applied in various legal systems
globally, it is essential to understand how its application in the Indian legal context compares
with that in other jurisdictions. Each jurisdiction may have its own nuances and
interpretations of the doctrine.
In India, the application of cy-près principles is rooted in common law traditions and
principles of equity. It is primarily governed by the Indian Trusts Act, 1882, which provides a
legal framework for charitable trusts and empowers the court to intervene when the original
charitable purpose becomes unworkable.
In contrast, other jurisdictions may have specific statutes or case law that govern the
application of cy-près. For example, in the United States, the cy-près doctrine is applied in
the context of class action settlements to ensure that unclaimed settlement funds are used for
a purpose that is as close as possible to the original intent of the settlement.
Comparative analysis allows us to understand how the Doctrine of Cy-près is uniquely
applied in India and how it aligns with principles of equity and justice in the Indian legal
system.
Principles and criteria for appliying Cy-press in India-7
A. Factors Considered by Courts
Understanding the factors that courts consider when deciding on cy-près applications
is crucial. This section explores the principles and criteria guiding the courts in India.
1. Impracticality or Impossibility of the Original Purpose
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https://www.law.cornell.edu/wex/cy_pres_doctrine
7
https://www.investopedia.com/terms/c/cy-pres-doctrine.asp
One of the primary factors considered by courts is whether the original charitable
purpose has become impractical or impossible to fulfill. If the court determines that
the original purpose cannot be achieved due to changed circumstances or other
reasons, it may be more inclined to apply the Doctrine of Cy-près.
2. Preservation of Donor's Charitable Intent
The court also considers the donor's charitable intent. It strives to ensure that the
modified charitable purpose aligns as closely as possible with the donor's original
intent. This principle underscores the importance of preserving the essence of the
donor's wishes.
3. Public Interest
The primary concern of the court when applying the Doctrine of Cy-près is the public
interest. The court's decision should serve the broader public interest and benefit the
community or a related charitable cause.
B. Role of the Court
The role of the court in modifying charitable trusts under the Doctrine of Cy-près is
crucial. Courts in India exercise their authority under Section 92 of the Indian Trusts
Act, 1882, to grant relief in cases involving charitable trusts. This includes the power
to vary the terms of the trust to ensure that the donor's charitable intent is upheld and
that the public interest is served.
The court plays a quasi-judicial role in cy-près applications, weighing the relevant
factors and exercising its discretion to determine the most appropriate modification to
the trust. This discretion is guided by principles of fairness, equity, and justice.
C. Balancing Intentions and Public Interest
A central theme in the application of the Doctrine of Cy-près is the delicate balance
between respecting the intentions of the settlor (donor) and safeguarding the public
interest. Courts in India are tasked with ensuring that charitable assets continue to
serve a charitable or public purpose, even when the original purpose is no longer
feasible. This balance is achieved through a careful examination of the specific
circumstances and a commitment to honoring the donor's charitable objectives while
adapting to changing realities.
Challenges and criticism-
(1) Potential Conflicts with Settlor's Intentions
One of the primary challenges associated with the Doctrine of Cy-près in India is
the potential for conflicts with the intentions of the settlor. Settlors often have
clear and specific charitable objectives when establishing trusts, and modifications
under cy-près may divert from these intentions. Critics argue that such
modifications may undermine the sanctity of the trust and the settlor's wishes.
However, it is essential to emphasize that courts in India exercise their discretion
judiciously and strive to align the modified charitable purpose as closely as
possible with the donor's original intent.
(2) Concerns Regarding Judicial Discretion
The exercise of judicial discretion in cy-près applications has faced criticism in
various legal systems, including India. Some critics argue that the scope of
judicial discretion may be too broad, leading to potential inconsistencies in
decision-making and concerns regarding transparency and accountability.
While judicial discretion is essential in applying cy-près principles, there is a need
for clear guidelines and principles to ensure that the court's decisions are fair,
reasonable, and consistent with the principles of equity and justice.
Suggestions for Improvement-
To address the challenges and criticisms associated with the Doctrine of Cy-près in India,
several suggestions and potential areas for improvement have been proposed:
1. Clear Guidelines and Criteria: One way to enhance the application of cy-près in India is
to establish clear guidelines and criteria that courts can consider when making cy-près
decisions. These guidelines can provide more transparency and consistency in decision-
making while ensuring that the donor's intent is honored.
2. Public Participation: In some cases, involving the public or beneficiaries in the decision-
making process can provide valuable input and ensure that the modified charitable purpose
serves the broader community's interests.
3. Oversight and Reporting: Implementing mechanisms for oversight and reporting can help
ensure that charitable assets are used in line with the court's directives and the public interest.
4. Judicial Training and Education: Providing training and education for judges and legal
professionals on the nuances of cy-près applications can lead to more informed and consistent
decisions.
Conclusion-
In conclusion, the Doctrine of Cy-près is a vital legal principle in Indian law, enabling courts
to adapt charitable trusts to changing circumstances while preserving the donor's charitable
intent and serving the public interest. Its application is guided by principles of equity, justice,
and respect for the donor's wishes.
The historical development of the doctrine in India traces its roots to English common law
and equity principles. Key cases such as Charan Das v. Amir Khan (1922), Jagdish Chandra
Gupta v. Kali Dasi (1959), Narayana Gurukal v. Ayyappan (1993), and Union of India v.
Rallia Ram (1963) have played a pivotal role in shaping its application.
The Indian Trusts Act, 1882, provides the legal framework for charitable trusts in India, with
Section 92 empowering the court to vary the terms of charitable trusts when the original
purpose becomes impossible or impractical.
The application of the Doctrine of Cy-près in India is guided by factors such as the
impracticality or impossibility of the original purpose, the preservation of the donor's
charitable intent, and the public interest. The court plays a crucial role in exercising its
discretion to modify charitable trusts, ensuring a balance between the donor's intentions and
the broader public interest.
The Doctrine of Cy-près has proven to be a valuable tool in India for adapting charitable
trusts to contemporary circumstances. It allows the court to ensure that charitable assets
continue to serve a charitable or public purpose, even when the original purpose is no longer
feasible. While there are challenges and criticisms, such as potential conflicts with settlor's
intentions and concerns about judicial discretion, the doctrine has generally been applied
judiciously in India to achieve a balance between preserving donor intent and serving the
public interest.
