Advocates’ Welfare Fund Act, 2001

Advocates’ Welfare Fund Act, 2001

Act No. 45 of 2001

[14th September, 2001]

An Act to provide for the constitution of a welfare fund for the benefit of advocates and for matters connected therewith or incidental thereto

Be it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:—

Chapter I

PRELIMINARY

1. Short title, extent and commencement.

1. Short title, extent and commencement.—(1) This Act may be called the Advocates’ Welfare Fund Act, 2001.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification, appoint; and different dates[i] may be appointed for different provisions of this Act and for different States, and any reference in any such provision to the commencement of this Act shall be construed in relation to any State as a reference to the coming into force of that provision in that State.

2. Definitions.

2. Definitions.—In this Act, unless the context otherwise requires,—

(a) “advocate” means an advocate whose name has been entered in the State roll prepared and maintained by a State Bar Council under Section 17 of the Advocates Act, 1961 (25 of 1961) and who is a member of a State Bar Association or State Advocates’ Association;

(b) “appropriate Government” means,—

(i) in the case of advocates admitted on the roll of a Bar Council of a State, the State Government;

(ii) in the case of advocates admitted on the roll of a Bar Council of a Union territory, the Central Government;

(c) “cessation of practice” means removal of the name of an advocate from the State roll under Section 26-A of the Advocates Act, 1961 (25 of 1961);

(d) “Chairperson” means the Chairperson of the Trustee Committee referred to in clause (a) of sub-section (3) of Section 4;

(e) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of Section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of Section 6 of that Act;

(f) “dependants” means the spouse, parents or minor children of a member of the Fund;

(g) “Fund” means the Advocates’ Welfare Fund constituted under sub-section (1) of Section 3;

(h) “insurer” shall have the meaning assigned to it in clause (9) of Section 2 of the Insurance Act, 1938 (4 of 1938);

(i) “member of the Fund” means an advocate admitted to the benefits of the Fund and who continues to be a member thereof under the provisions of this Act;

(j) “notification” means a notification published in the Official Gazette of the appropriate Government and the expression “notified” shall be construed accordingly;

(k) “prescribed” means prescribed by rules made under this Act;

(l) “Schedule” means a Schedule to this Act;

(m) “scheduled bank” shall have the meaning assigned to it in clause (e) of Section 2 of the Reserve Bank of India Act, 1934 (2 of 1934);

(n) “stamp” means the Advocates’ Welfare Fund Stamp printed and distributed under Section 26;

(o) “State” means a State specified in the First Schedule to the Constitution and shall include a Union territory;

(p) “State Advocates’ Association” means an association of advocates in a State recognised by the Bar Council of that State under Section 16;

(q) “State Bar Association” means an association of advocates recognised by the Bar Council of that State under Section 16;

(r) “State Bar Council” means a Bar Council referred to in Section 3 of the Advocates Act, 1961 (25 of 1961);

(s) “suspension of practice” means voluntary suspension of practice as an advocate or suspension of an advocate by a State Bar Council for misconduct;

(t) “Trustee Committee” means the Advocates’ Welfare Fund Trustee Committee established under sub-section (1) of Section 4;

(u) “Vakalatnama” includes memorandum of appearance or any other document by which an advocate is empowered to appear or plead before any court, tribunal or other authority;

(v) words and expressions used and not defined in this Act but defined in the Advocates Act, 1961 (25 of 1961) shall have the meanings respectively assigned to them in that Act.

Chapter II

CONSTITUTION OF ADVOCATES’ WELFARE FUND

3. Advocates’ Welfare Fund.

3. Advocates’ Welfare Fund.—(1) The appropriate Government shall constitute a fund to be called the “Advocates’ Welfare Fund”.

(2) There shall be credited to the Fund—

(a) all amounts paid by a State Bar Council under Section 15;

(b) any other contribution made by a State Bar Council;

(c) any voluntary donation or contribution made to the Fund by the Bar Council of India, any State Bar Association, any State Advocates’ Association or other association or institution, or any advocate or other person;

(d) any grant which may be made by the Central Government or a State Government to the Fund after due appropriation made in this behalf;

(e) any sums borrowed under Section 12;

(f) all sums collected under Section 18;

(g) all sums received from the Life Insurance Corporation of India or any other insurer on the death of any member of the Fund under any Group Insurance Policy;

(h) any profit or dividend or refund received from the Life Insurance Corporation of India or any other insurer in respect of policies of Group Insurance of the members of the Fund;

(i) any interest or dividend or other return on any investment made out of any part of the Fund;

(j) all sums collected by way of sale of stamps under Section 26.

(3) The sums specified in sub-section (2) shall be paid to, or collected by, such agencies, at such intervals and in such manner, as may be prescribed.

Chapter III

ESTABLISHMENT OF TRUSTEE COMMITTEE

4. Establishment of Trustee Committee.

4. Establishment of Trustee Committee.—(1) With effect from such date as the appropriate Government may, by notification, appoint in this behalf, there shall be established a Trustee Committee to be called the “Advocates’ Welfare Fund Trustee Committee”.

(2) The Trustee Committee shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and shall, by the said name, sue and be sued.

(3) The Trustee Committee shall consist of—

(a)	the Advocate General of a State	—	Chairperson, ex officio;
Provided that where there is no Advocate General of a State, the appropriate Government shall nominate a senior advocate to be the Chairperson;
(b)	the Secretary to the appropriate Government in its Law Department or Ministry	—	Member, ex officio;
(c)	the Secretary to the appropriate Government in its Home Department or Ministry	—	Member, ex officio;
(d)	the Chairman of the State Bar Council	—	Member, ex officio;
(e)	the Government Pleader or the Public Prosecutor, as may be nominated by the appropriate Government	—	Member;
(f)	two advocates to be nominated by the State Bar Council	—	Members;
(g)	the Secretary of the State Bar Council	—	Secretary, ex officio.

(4) The Chairperson nominated under the proviso to clause (a) of sub-section (3) shall hold office for a period not exceeding three years from the date on which he enters upon his office.

(5) Every Member of the Trustee Committee nominated under clause (e) or clause (f) of sub-section (3) shall hold office for a period not exceeding three years from the date on which he enters upon his office.

 

Other Contents of Advocates’ Welfare Fund Act, 2001

Sections 1 to 20 Sections 21 to 38 and Schedules

 

5. Disqualifications and removal of Chairperson or Member of Trustee Committee.

5. Disqualifications and removal of Chairperson or Member of Trustee Committee.—(1) The appropriate Government shall remove from office the Chairperson or any Member of the Trustee Committee, who—

(a) is, or at any time has been, adjudged as an insolvent; or

(b) has become physically or mentally incapable of acting as the Chairperson or a Member of the Trustee Committee; or

(c) has been convicted of an offence which, in the opinion of the appropriate Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chairperson or a Member of the Trustee Committee; or

(e) has so abused his position as to render his continuation in office detrimental to the public interest; or

(f) is, or at any time has been, absent without leave of the Trustee Committee for more than three consecutive meetings of the Trustee Committee:

Provided that the Trustee Committee may, on sufficient ground, condone the absence of such Chairperson or Member.

(2) No such Chairperson or Member of the Trustee Committee shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard.

6. Resignation by nominated Chairperson and Members of Trustee Committee and filling up of casual vacancy.

6. Resignation by nominated Chairperson and Members of Trustee Committee and filling up of casual vacancy.—(1) The Chairperson referred to in sub-section (4) of Section 4 or a Member nominated under clause (e) of sub-section (3) of that section may resign his office by giving three months’ notice in writing to the appropriate Government and on such resignation being accepted by the appropriate Government such Chairperson or Member shall vacate his office.

(2) A Member nominated under clause (f) of sub-section (3) of Section 4 may resign his office by giving three months’ notice in writing to the State Bar Council and on such resignation being accepted by the State Bar Council such Member shall vacate his office.

(3) A casual vacancy in the office of the Chairperson or a Member referred to in sub-section (1) who has resigned may be filled up, as soon as may be, by the appropriate Government and the Chairperson or a Member so nominated shall hold office only so long as the Chairperson or the Member in whose place he is nominated would have been entitled to hold office if the vacancy did not occur.

(4) A casual vacancy in the office of a Member referred to in sub-section (2) who has resigned may be filled up, as soon as may be, by the State Bar Council and a Member so nominated shall hold office only so long as the Member in whose place he is nominated would have been entitled to hold office if the vacancy did not occur.

7. Vacancies, etc. not to invalidate proceedings of Trustee Committee.

7. Vacancies, etc. not to invalidate proceedings of Trustee Committee.—No act or proceeding of the Trustee Committee shall be invalid merely by reason of—

(a) any vacancy in, or any defect in the constitution of, the Trustee Committee; or

(b) any defect or irregularity in the nomination of a person acting as the Chairperson or a Member of the Trustee Committee; or

(c) any irregularity in the procedure of the Trustee Committee not affecting the merits of the case.

8. Meetings of Trustee Committee.

8. Meetings of Trustee Committee.—(1) The Trustee Committee shall meet at least once in every three calendar months and at least four such meetings shall be held in every year to transact business under this Act and the rules made thereunder.

(2) Three Members of the Trustee Committee shall form the quorum for a meeting of the Trustee Committee.

(3) The Chairperson of the Trustee Committee or, if for any reason, he is unable to attend a meeting of the Trustee Committee, any other Member chosen by the Members of the Trustee Committee present from amongst themselves at the meeting shall preside at the meeting.

(4) All questions which come up in a meeting of the Trustee Committee shall be decided by a majority vote of the Members of the Trustee Committee present and voting, and, in the event of an equality of votes, the Chairperson, or in his absence, the Member of the Trustee Committee presiding, shall have a second or casting vote.

9. Travelling and daily allowances to nominated Chairperson and Members of Trustee Committee.

9. Travelling and daily allowances to nominated Chairperson and Members of Trustee Committee.—The Chairperson referred to in sub-section (4) of Section 4 and Members of the Trustee Committee referred to in clauses (e) and (f) of sub-section (3) of that section shall be entitled to be paid such travelling and daily allowances as are admissible to the members of the State Bar Council.

10. Vesting and application of Fund.

10. Vesting and application of Fund.—The Fund shall vest in, and be held and applied by, the Trustee Committee subject to the provisions, and for the purposes, of this Act.

11. Functions of Trustee Committee.

11. Functions of Trustee Committee.—(1) Subject to the provisions of this Act and any other law for the time being in force, the Trustee Committee shall administer the Fund.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the Trustee Committee shall—

(a) hold the amounts and assets belonging to the Fund in trust;

(b) receive applications for admission or re-admission as members to the Fund, and dispose of such applications within ninety days from the date of receipt thereof;

(c) receive applications from the members of the Fund, their nominees or legal heirs, as the case may be, for payment out of the Fund, conduct such enquiry as it deems necessary and dispose of the applications within five months from the date of receipt thereof;

(d) record in the minutes book of the Trustee Committee, its decisions on the applications;

(e) pay to the members of the Fund or their nominees or legal heirs, as the case may be, the amounts at the rates specified in Schedule I;

(f) send such periodical and annual reports as may be prescribed, to the appropriate Government and the State Bar Council;

(g) communicate to the applicants, by registered post with acknowledgment due or through electronic mode, the decisions of the Trustee Committee in respect of applications for admission or re-admission as members to the Fund or claims to the benefit of the Fund;

(h) do such other acts as are, or may be, required to be done under this Act and the rules made thereunder.

12. Borrowing and investment.

12. Borrowing and investment.—(1) The Trustee Committee may, with the prior approval of the appropriate Government and the State Bar Council, borrow, from time to time, any sum required for carrying out the purposes of this Act.

(2) The Trustee Committee shall deposit all monies and receipts forming part of the Fund in any scheduled bank or invest the same in debt instruments of any corporation owned or controlled by the appropriate Government or in loans floated by the appropriate Government or in any other manner as the State Bar Council may, from time to time, direct with the prior approval of the appropriate Government.

(3) All amounts due and payable under this Act and all expenditure relating to the management and administration of the Fund shall be paid out of the Fund.

13. Accounts and audit.

13. Accounts and audit.—(1) The Trustee Committee shall maintain proper accounts and other relevant records and prepare an annual statement of accounts and annual report in such form and in such manner as may be prescribed.

(2) The accounts of the Trustee Committee shall be audited annually by a chartered accountant appointed by the State Bar Council.

(3) The accounts of the Trustee Committee as audited by the chartered accountant together with his audit report shall be forwarded to the State Bar Council by that Committee and the State Bar Council may issue such directions, as it deems fit, to the Trustee Committee in respect thereof.

(4) The Trustee Committee shall comply with the directions issued by the State Bar Council under sub-section (3).

(5) The Trustee Committee shall pay from the Fund the charges for the audit as may be fixed by the State Bar Council.

14. Powers and duties of Secretary.

14. Powers and duties of Secretary.—The Secretary of the Trustee Committee shall—

(a) be the chief executive authority of the Trustee Committee and responsible for carrying out its decisions;

(b) represent the Trustee Committee in all suits and proceedings for and against the Trustee Committee;

(c) authenticate by his signature all decisions and instruments of the Trustee Committee;

(d) operate bank account of the Trustee Committee jointly with the Chairperson;

(e) convene meetings of the Trustee Committee and prepare minutes of such meetings;

(f) attend meetings of the Trustee Committee with all the necessary records and information;

(g) maintain such forms, registers and other records as may be prescribed from time to time and do all correspondence relating to the Trustee Committee;

(h) prepare an annual statement of business transacted by the Trustee Committee during a financial year;

(i) do such other acts as are or may be directed by the Trustee Committee and the State Bar Council.

15. Payment of certain monies to Fund by State Bar Council.

15. Payment of certain monies to Fund by State Bar Council.—The State Bar Council shall pay to the Fund annually an amount equal to twenty per cent of the enrolment fee received by it under clause (f) of Section 24 of the Advocates Act, 1961 (25 of 1961).

Chapter IV

RECOGNITION OF ANY ASSOCIATION OF ADVOCATES

16. Recognition by a State Bar Council of any association of advocates.

16. Recognition by a State Bar Council of any association of advocates.—(1) Any association of advocates known by any name which is registered as an association before the date of commencement of this Act may, before the date to be notified by a State Bar Council in this behalf, apply for recognition to the State Bar Council in such form as may be prescribed.

(2) Any association of advocates known by any name which is registered as an association on or after the date of commencement of this Act may, within three months from the date of its registration as an association, apply for recognition to the State Bar Council in such form as may be prescribed.

(3) Every application for recognition under sub-section (1) or sub-section (2) shall be accompanied by,—

(a) a copy of the rules or bye-laws of the association;

(b) names and addresses of office bearers of the association;

(c) a list of members of the association containing the name, address, age, enrolment number and date of enrolment with the State Bar Council and the ordinary place of practice of each member.

(4) The State Bar Council may, after such enquiry as it deems necessary, recognise the association and issue a certificate of recognition in such form as may be prescribed.

(5) The decision of the State Bar Council on any matter regarding recognition of an association under sub-section (4) shall be final.

Explanation.—In this section, “registered” means registered or deemed to be registered under the Societies Registration Act, 1860 (21 of 1860) or any other law for the time being in force.

17. Duties of State Bar Associations and State Advocates’ Associations.

17. Duties of State Bar Associations and State Advocates’ Associations.—(1) Every State Bar Association and State Advocates’ Association shall, on or before the 15th day of April of every year, furnish to the State Bar Council a list of its members as on the 31st day of March of that year.

(2) Every State Bar Association and State Advocates’ Association shall inform the State Bar Council of—

(a) any change in the membership including admissions and re-admissions within thirty days of such change;

(b) the death or other cessation of practice or voluntary suspension of practice of any of its members within thirty days from the date of occurrence thereof;

(c) such other matters as may be required by the State Bar Council from time to time.

Chapter V

MEMBERSHIP AND PAYMENT OUT OF ADVOCATES’ WELFARE FUND

18. Membership in Fund.

18. Membership in Fund.—(1) Every advocate practising, before the commencement of this Act, in any court, tribunal or other authority in a State and being a member of a State Bar Association or a State Advocates’ Association in that State, shall apply, within six months of the commencement of this Act, to the Trustee Committee for admission as a member of the Fund, in such form as may be prescribed.

(2) Every person,—

(a) admitted as an advocate on the roll of a State Bar Council, after the commencement of this Act;

(b) practising in any court, tribunal or other authority in a State and being a member of a State Bar Association or a State Advocates’ Association in that State,—

shall apply, within six months of his enrolment as an advocate, to the Trustee Committee, for admission as a member of the Fund in such form as may be prescribed.

(3) On receipt of an application under sub-section (1) or sub-section (2), the Trustee Committee shall make such enquiry as it deems fit and either admit the applicant to the Fund or, for reasons to be recorded in writing, reject the application:

Provided that no order rejecting an application shall be passed unless the applicant has been given an opportunity of being heard.

(4) Every applicant shall pay an application fee of two hundred rupees along with the application to the account of the Trustee Committee.

(5) Every advocate, being a member of the Fund, shall pay an annual subscription of fifty rupees to the Fund on or before the 31st day of March of every year:

Provided that every advocate, who makes an application under sub-section (1) or sub-section (2), shall pay his first annual subscription within three months of his becoming a member of the Fund:

Provided further that a senior advocate shall pay an annual subscription of one thousand rupees.

(6) Any member of the Fund, who fails to pay the annual subscription for any year before the 31st day of March of that year, shall be liable to be removed from the membership in the Fund.

(7) A member of the Fund removed from the membership in the Fund under sub-section (6) may be re-admitted to the Fund, on payment of arrears along with re-admission fee of ten rupees, within six months from the date of such removal.

(8) Every member of the Fund shall, at the time of admission to the membership in the Fund, make nomination conferring on one or more of his dependants the right to receive, in the event of his death, any amount payable to the member under this Act.

(9) If a member of the Fund nominates more than one person under sub-section (8), he shall specify in the nomination, the amount or share payable to each of the nominees.

(10) A member of the Fund may, at any time, cancel a nomination by sending a notice in writing to the Trustee Committee.

(11) Every member of the Fund, who cancels his nomination under sub-section (10), shall make a fresh nomination along with registration fee of five rupees.

(12) Every member of the Fund, whose name has been removed from the State roll under Section 26-A of the Advocates Act, 1961 (25 of 1961), or who voluntarily suspends practice, shall, within fifteen days of such removal or suspension, intimate such removal or suspension to the Trustee Committee and if any member of the Fund fails to do so without sufficient reason, the Trustee Committee may reduce, in accordance with such principles as may be prescribed, the amount payable to that member under this Act.

19. Ex gratia grant to a member of Fund.

19. Ex gratia grant to a member of Fund.—The Trustee Committee on an application made to it by a member of the Fund, and after being satisfied about the genuineness of the claim, may allow ex gratia grant to such member from the Fund—

(a) in the case of his hospitalisation or involving major surgical operation; or

(b) if he is suffering from tuberculosis, leprosy, paralysis, cancer, unsoundness of mind or from such other serious disease or disability.

20. Review.

20. Review.—The Trustee Committee may, on its own motion or on an application received from any person interested, within ninety days of the passing of any order by it under the provisions of this Act, review such order, if it was passed under any mistake, whether of fact or of law or in ignorance of any material fact:

Provided that the Trustee Committee shall not pass any order under this section adversely affecting any person unless such person has been given an opportunity of being heard.

References

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