Report No. 110
17.22. Section 118A-Provision in regard to charities.-
There is another point concerning charities which needs to be considered. The Transfer of Property Act1 provides, in effect, that the restrictions imposed by the Act with respect to-(i) the rule against perpetuity, (ii) the rule as to a transfer which is to take effect on failure of prior (invalid) interest, and (iii) the rule as to direction for accumulation, do not apply in the case of transfer of property (inter-vivous) for the benefit of the public for certain specified purposes (broadly, charitable purposes). We may also add that the Law Commission in its Report on the Act has suggested some changes. Section 18 of the Transfer of Property Act as recommended (to the revised)2 is as follows:-
"18. The restrictions in sections 14, 16 and 17 shall not apply in the case of a transfer of property for the benefit of the public, in the relief of poverty, the advancement of religion, education, commerce, health, safety, or any other object beneficial to mankind."
1. Section 18, Transfer of Property Act, 1882.
2. See Law Commission of India, 70th Report (Transfer of Property Act).
17.23. The Succession Act does not make any such concession in the case of charities. We however, see no reason why such concessions ought not to be provided in the Succession Act also. Accordingly, we recommend that a new section-say, as section 118A-should be inserted as follows, to provide that the corresponding provisions of the Succession Act shall not apply to bequests.
"118A. The restrictions contained in sections 114, 116 and 117 shall not apply in the case of a bequest for the benefit of the public, for the relief of property or the advancement of religion, education, commerce, health, safety or any other object beneficial to mankind."