The Author, Kaushal B Shah is a 3rd year, LLB student of Lord’s Universal College of Law, Mumbai. He is currently interning with LatestLaws.com.

INTRODUCTION.

The Advocates’ Welfare Fund Act,2001 has been enacted by the Parliament in the Fifty-second year of the Republic of India. It came into force on 14th September,2001. It has been constituted for the supportive needs of an advocates.

Advocates’ Welfare Fund is constituted by State Governments for the advocates admitted on the rolls of the Bar Councils of the respective States and by the Central Government for the advocates admitted on the rolls of the Bar Councils of the Union territories.

Q.1) What is the meaning of an Advocate as per Advocates Act,1961?

Ans. As per section 2(a) read with section 17 of an Advocates Act,1961 a person is said to be an Advocate if his/her name and address has been entered in the roll of advocates prepared and maintained by every State Bar Council in their respective state under the Indian Bar Councils Act,1926.

Q.2) What are the sources of income by which an Advocates Welfare Fund is constituted?

Ans. As per section 3(1) of an Act an Advocates Welfare Fund has been established by the Central Government of India vide its notification in the official gazette.

 As per section 3(2), the amount in this fund is credited through various sources namely:

  1. The State Bar Council is required to pay annually an amount equal to twenty five percent of the enrolment fee received by it in this fund-Section 15
  2. The Bar Council of India, any State Bar Association, any State Advocates’ Association can voluntarily contribute to this fund-section 3(2)(c).
  3. Any contribution made by the Central Government or State Government to this fund-section3(2)(d)
  4. Even the trustee committee can withdraw the money from this fund with the prior approval of the appropriate government or State Bar Council.
  5. An application fee of Rs 200 collected from every applicant at the time of application for membership to the fund under [Section 18(4)];
  6.  An annual subscription of Rs 50 collected from every member who is not a senior advocate under [Section 18(5)];
  7. An annual subscription of Rs 1,000 collected from every member who is a senior advocate under [Section 18(5)(Proviso)];
  8.  Any sum received from the Life Insurance Corporation of India or any other insurer on the death of any member.
  9.  Any profit or dividend or refund received from the Life Insurance Corporation of India or any other insurer.
  10. Any interest or dividend or other return on any investment made out of any part of the fund;

Q.3) Describe the formation of Trustee Committee?

Ans. As per section 4 of the Advocates’ Welfare Fund Act,2001 the Trustee Committee shall consist of the following:

  1. The Advocate General of a state or in the absence of an advocate general, the appropriate government may appoint a senior advocate to be the chairperson.
  2. The secretary in its Law department to be a member.
  3. The secretary in its Home department to be a member.
  4. The chairman of the State Bar Council to be a member.
  5. The Public Prosecutor or the government Pleader to be a member.
  6. Two advocates nominated by the State Bar Council.
  7. The secretary of the State Bar Council to be its secretary.

Q.4) How is the meeting of the Trustee Committee held?

Ans. Three members of the trustee committee shall form the quorum for a meeting and they shall meet at least once in every three calendar months and at least four such meeting shall be held every year to transact business under this Act and the rules made thereunder.

 

Q.5) What are the functions of the Trustee Committee?

Ans. The role of the committee consists of the following namely:

  1. The trustee committee is required to record its decisions on the applications in the minutes book.
  2. To hold the amounts and assets belonging to the fund in trust;
  3. To accept the applications or renew the applications as members to the fund and dispose them of within ninety days from the date of receipt thereof.
  4. The committee is required to make payment out of the fund and conduct such interrogation with each and every member as it deems necessary.
  5. They are hereby required to send such periodical and annual reports as may be prescribed, to the appropriate Government and the State Bar Council.  

Q.6) What is the maximum time limit for which a member can hold an office under the trustee committee?

Ans. The Chairperson nominated shall hold office for a period not exceeding three years from the date on which he enters upon his office.

Every member of the Trustee Committee shall hold office for a period not exceeding three years from the date on which he enters upon office.   

Q.7) Who all are the persons not eligible for the benefit of Advocates’ Welfare Fund?

Ans. Senior advocates or persons, in receipt of pension from the Central Government or a State Government are not entitled to ex-gratia grant, or payment of amount on their cessation of practice or any benefit.

Q.8) Is there any provision for the income received to the fund under the Income Tax Act,1961?

Ans. Notwithstanding anything contained in the Income-tax Act, 1961 or any other law for the time being in force relating to tax on income, profits or gains, the income accrued to the Fund constituted under sub-section (1) of section 3 shall be exempt from income-tax.

Q.9) State the provisions for the value of the stamps to bear on Vakalatnama in order to entitle the benefits of fund by an advocate?

Ans. Every advocate shall affix stamp of a value of—

Five rupees on every Vakalatnama filed by him in a District Court or a court subordinate to the District Court;

Ten rupees on every Vakalatnama filed by him in a tribunal or other authority or a High Court or the Supreme Court;

It is upon the appropriate Government as not to prescribe the value of the stamps exceeding twenty-five rupees to be affixed under the said Act.The value of the stamp shall neither be the cost in a case nor be collected in any event from the client.

Any contravention of the above provisions by any advocate shall disentitle him either in whole or in part to the benefits of the Fund and the State Bar Council is entitled to take appropriate action.

Q.10) How can an advocate be admitted to the membership of the fund?

Ans. Every advocate 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 is to apply to the Trustee Committee for admission as a member of the Fund and is liable to pay application/membership fees as prescribed under the provisions of this Act.

 

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Kaushal B Shah