THE ADVOCATES’ WELFARE FUND ACT, 2001 
__________ 

ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

CONSTITUTION OF ADVOCATES’ WELFARE FUND 

3.  Advocates’ Welfare Fund. 

CHAPTER III 

ESTABLISHMENT OF TRUSTEE COMMITTEE 

4.  Establishment of Trustee Committee. 
5.  Disqualifications and removal of Chairperson of Member of Trustee Committee. 
6.  Resignation by nominated Chairperson and Members of Trustee Committee and filling up of 

casual vacancy. 

7.  Vacancies, etc., not to invalidate proceedings of Trustee Committee. 
8.  Meetings of Trustee Committee. 
9.  Travelling daily allowances to nominated Chairperson and Members of Trustee Committee. 
10.  Vesting and application of Fund. 
11.  Functions of Trustee Committee. 
12.  Borrowing and investment. 
13.  Accounts and audit. 
14.  Powers and duties of Secretary. 
15.  Payment of certain monies to Fund by State Bar Council. 

CHAPTER IV 

RECOGNITION OF ANY ASSOCIATION OF ADVOCATES 

16.  Recognition by a State Bar Council of any association of advocates. 
17. Duties of State Bar Associations and State Advocates’ Associations. 

MEMBERSHIP AND PAYMENT OUT OF ADVOCATES’ WELFARE FUND 

CHAPTER V 

18.  Membership in Fund. 
19.  Ex gratia grant to a member of Fund. 
20.  Review. 
21.  Payment of amount on cessation of practice. 
22.  Restriction on alienation, attachment, etc., of interest of member in Fund. 
23.  Exemption from income-tax. 
24.  Group Life Insurance for members of Fund and other benefits. 
25.  Appeal against decision or order of Trustee Committee. 

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CHAPTER VI 

PRINTING, DISTRIBUTION AND CANCELLATION OF STAMPS 

SECTIONS 

26.  Printing and distribution of Advocates’ Welfare Fund Stamps by State Bar Council. 
27.  Vakalatnama to bear stamps. 

CHAPTER VII 

MISCELLANEOUS 

28.  Certain persons not to be eligible for benefits. 
29.  Protection of action taken in good faith. 
30.  Bar of jurisdiction of civil courts. 
31.  Power to summon witnesses and take evidence. 
32.  Power to amend Schedules I and II. 
33.  Power of appropriate Government to issue directions. 
34.  Power of appropriate Government to supersede Trustee Committee. 
35.  Power of Central Government to make rules. 
36.  Power of State Government to make rules. 
37.  Rules and notifications to be laid before Parliament or State Legislature. 
38.  Saving. 

SCHEDULE I. 

SCHEDULE II. 

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THE ADVOCATES’ WELFARE FUND ACT, 2001 

ACT NO. 45 OF 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:— 

[14th, September, 2001.] 

CHAPTER I 

PRELIMINARY 

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 date1 as the Central Government may, by notification, appoint; 
and different dates 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.—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 26A 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); 

1. 1st November, 2001 (whole of India except certain States), vide notification No. S.O. 946(E), dated 26th September, 2001, see 

Gazette of India, Extraordinary, Part II, sec. 3(ii). 

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(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.—(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.—(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”. 

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(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 a chairperson; 

(b)  the Secretary to the appropriate Government in 

-     Member, ex officio; 

its Law Department or Ministry 

(c)  the Secretary to the appropriate Government in 

-     Member, ex officio; 

its Home Department or Ministry 

(d)   the Chairman of the State Bar Council 

-     Member, ex officio; 

(e) 

the  Public 
the  Government  Pleader  or 
Prosecutor,  as  may  be  nominated  by  the 
appropriate Government 

-     Member; 

(f)   two advocates to be nominated by the State Bar 

-     Member; 

Council 

(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. 

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.—(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. 

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(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.—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.—(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.—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.—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.—(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; 

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(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.—(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.—(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.—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.—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). 

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CHAPTER IV 

RECOGNITION 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.—(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. 

MEMBERSHIP AND PAYMENT OUT OF ADVOCATES’ WELFARE FUND 

CHAPTER V 

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. 

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(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 26A 
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.—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.—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. 

21. Payment of amount on cessation of practice.—(1) Every advocate who has been a member of 
the Fund for a period of not less than five years shall, on his cessation of practice, be paid an amount at 
the rate specified in Schedule I: 

Provided that where the Trustee Committee is satisfied that a member of the Fund ceases to practice 
within a period of five years from the date of his admission as a member of such Fund as a result of any 

9 

 
permanent  disability,  the  Trustee  Committee  may  pay  such  member  an  amount  at  the  rate  specified  in 
Schedule I. 

(2) Where a member of the Fund dies before receiving the amount payable under sub-section (1), his 
nominee or legal heir, as the case may be, shall be paid the amount payable to the deceased member of the 
Fund. 

22. Restriction on alienation, attachment, etc., of interest of member in Fund.—(1) The interest 
of any member in the Fund, or the right of a member of the Fund or his nominee or legal heir to receive 
any  amount  from  the  Fund,  shall  not  be  assigned,  alienated,  or  charged  and  shall  not  be  liable  to 
attachment under any decree or order of any court, tribunal or other authority. 

(2) No creditor shall be entitled to proceed against the Fund or the interest therein of any member of 

the Fund or his nominee or legal heir. 

Explanation.—For the purposes of this section, “creditor” includes the State or an official assignee or 

official receiver appointed under the law relating to insolvency for the time being in force. 

23. Exemption from income-tax.—Notwithstanding anything contained in the Income-tax Act, 1961 
(43 of 1961) or any other enactment 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. 

24.  Group  Life  Insurance  for  members  of  Fund  and  other  benefits.—The  Trustee  Committee 

may, for the welfare of the members of the Fund,— 

(a) obtain, from the Life Insurance Corporation of India or any other insurer, policies of Group 

Insurance on the life of the members of the Fund; or 

(b) provide, in such manner as may be prescribed, for medical and educational facilities for the 

members of the Fund and their dependants; or 

(c) provide monies to the members of the Fund for purchase of books; or 

(d) provide monies to construct or maintain common facilities for the members of the Fund: 

Provided  that  the  Trustee  Committee  shall  spend  ten  per  cent.  of  the  total  annual  subscription 
received under sub-section (5) of section 18 on the construction or maintenance of common facilities 
for the members of the Fund practising in the subordinate courts; or 

(e) provide funds for any other purpose which the Trustee Committee may specify; or 

(f) provide for such other benefits as may be prescribed. 

25. Appeal against decision or order of Trustee Committee.—(1) An appeal against any decision 

or order of the Trustee Committee shall lie to the State Bar Council. 

(2) The appeal shall be in the prescribed form and shall be accompanied by— 

(a) a copy of the decision or order appealed against; 

(b) a receipt evidencing payment of twenty-five rupees to the credit of the State Bar Council in 

any of the branches of a scheduled bank. 

(3)  The  appeal  shall  be  filed  within  thirty  days  from  the  date  of  receipt  of  the  decision  or  order 

appealed against. 

(4) The decision of the State Bar Council on such appeal shall be final. 

CHAPTER VI 

PRINTING, DISTRIBUTION AND CANCELLATION OF STAMPS 

26.  Printing  and  distribution  of  Advocates’  Welfare  Fund  Stamps  by  State  Bar  Council.—      

(1) The appropriate Government shall, on a request made by the State Bar Council in this behalf, cause to 
be  printed  and  distributed  Advocates’  Welfare  Fund  Stamps  of  the  value  of  five  rupees  or  such  other 
value, which may be prescribed, inscribing therein “Advocates’ Welfare Fund Stamp”, in such design as 
may be prescribed. 

10 

 
(2) Every stamp referred to in sub-section (1) shall be of the size 2.54 c.m. by 5.08 c.m. and sold to 

the advocates. 

(3) The custody of the stamps shall be with the State Bar Council. 

(4) The State Bar Council shall control the distribution and sale of the stamps through the State Bar 

Associations and the State Advocates’ Associations. 

(5)  The  State  Bar  Council,  the  State  Bar  Associations  and  the  State  Advocates’  Associations  shall 

keep proper accounts of the stamps in such form and manner as may be prescribed. 

(6) The State Bar Associations and State Advocates’ Associations shall purchase the stamps from the 
State  Bar  Council  after  paying  the  value  thereof  as  reduced  by  ten  per  cent.  of  such  value  towards 
incidental expenses. 

27. Vakalatnama to bear stamps.—(1) Every advocate shall affix stamp of a value of— 

(a) five rupees on every Vakalatnama filed by him in a District Court or a court subordinate to the 

District Court; 

(b) ten rupees on every Vakalatnama filed by him in a tribunal or other authority or a High Court 

or the Supreme Court: 

Provided  that  the  appropriate  Government  may  prescribe  the  value  of  the  stamps  not  exceeding 

twenty-five rupees to be affixed under this sub-section: 

Provided further that the appropriate Government may prescribe different value of the stamps to be 
affixed on every Vakalatnama to be filed in a District Court, or a court subordinate to the District Court or 
a tribunal or other authority or a High Court or the Supreme Court. 

(2) The value of the stamp shall neither be the cost in a case nor be collected in any event from the 

client. 

(3) Any contravention of the provisions of sub-section (1) or sub-section (2) by any advocate shall 
disentitle him either in whole or in part to the benefits of the Fund and the Trustee Committee shall report 
such contravention to the State Bar Council for appropriate action. 

(4) Every stamp affixed on every Vakalatnama filed before a District Court or a court subordinate to 
the District Court or a tribunal or other authority or a High Court or the Supreme Court shall be cancelled 
in such manner as may be prescribed. 

CHAPTER VII 

MISCELLANEOUS 

28. Certain persons not to be eligible for benefits.—No senior advocate, or a person in receipt of 
pension from the Central Government or a State Government, shall be entitled to  ex gratia grant under 
section  19  or  payment  of  amount  on  his  cessation  of  practice  under  section  21  or  any  benefit  under      
clause (a) or clause (b) or clause (c) of section 24. 

29. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie against the appropriate Government or the Trustee Committee or the Chairperson or a Member or the 
Secretary of the Trustee Committee or the State Bar Council or any person for anything which is in good 
faith done or intended to be done under this Act or the rules made thereunder. 

30. Bar of jurisdiction of civil courts.—No civil court shall have jurisdiction to settle, decide or deal 
with any question or to determine any matter which is by or under this Act required to be settled, decided 
or dealt with or to be determined by the Trustee Committee or the State Bar Council. 

31.  Power  to  summon  witnesses  and  take  evidence.—The  Trustee  Committee  and  the  State  Bar 
Council shall, for the purpose of any enquiry under this Act, have the same powers as are vested in a civil 
court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following 
matters, namely:— 

(a) enforcing the attendance of any person or examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavit; 

(d) issuing commissions for the examination of witnesses; 

11 

 
(e) any other matter which may be prescribed. 

32.  Power  to  amend  Schedules  I  and  II.—(1)  The  appropriate  Government  may,  on  the 
recommendation of the Trustee Committee, by notification, and having due regard to the availability of 
the amount in the Fund, amend the rates specified in Schedule I. 

(2)  The  Central  Government  may,  as  and  when  considered  necessary,  by  notification,  amend 

Schedule II. 

33. Power of appropriate Government to issue directions.—(1) Without prejudice to the generality 
of  the  foregoing  provisions  of  this  Act,  the  Trustee  Committee  shall,  in  exercise  of  the  powers  or  the 
performance  of  its  functions  under  this  Act,  be  bound  by  such  directions  on  questions  of  policy,  other 
than those relating to professional and administrative matters, as the appropriate Government may give in 
writing to it from time to time: 

Provided that the Trustee Committee shall, as far as practicable, be given an opportunity to express its 

views before any direction is given under this sub-section. 

(2) The decision of the appropriate Government, whether a question is one of policy or not, shall be 

final. 

34. Power of appropriate Government to supersede Trustee Committee.—(1) If at any time the 

appropriate Government is of the opinion— 

(a) that, on account of circumstances beyond the control of the Trustee Committee, it is unable to 

discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or 

(b) that the Trustee Committee has persistently defaulted in complying with any direction given 
by the appropriate Government under this Act or in the discharge of the functions or performance of 
the duties imposed on it by or under the provisions of this Act; or 

(c) that circumstances exist which render it necessary in the public interest so to do, 

the  appropriate  Government  may,  by  notification  and  for  reasons  to  be  specified  therein,  supersede the 
Trustee Committee for such period, not exceeding six months, as may be specified in the notification and 
appoint, in consultation with the Chief Justice of the High Court having jurisdiction, a Judge of the High 
Court to be the Controller of the Trustee Committee: 

Provided  that  before  issuing  any  such  notification,  the  appropriate  Government  shall  give  a 
reasonable  opportunity  to  the  Trustee  Committee  to  make  representations  against  the  proposed 
supersession and shall consider the representations, if any, of the Trustee Committee. 

(2)  Upon  the  publication  of  a  notification  under  sub-section  (1)  superseding  the  Trustee 

Committee,— 

(a) the Chairperson, Members and the Secretary of the Trustee Committee shall, as from the date 

of supersession, vacate their offices as such; 

(b)  all  powers,  functions  and  duties  which  may,  by  or  under  the  provisions  of  this  Act,  be 
exercised or discharged by or on behalf of the Trustee Committee shall, until the Trustee Committee 
is reconstituted under sub-section (3), be exercised and discharged by the Controller of the Trustee 
Committee; and 

(c) all properties and Fund owned or controlled by the Trustee Committee shall, until the Trustee 

Committee is reconstituted under sub-section (3), vest in the appropriate Government. 

(3) On or before the expiration of the period of supersession specified in the notification issued under 
sub-section  (1),  the  appropriate  Government  shall  reconstitute  the  Trustee  Committee  by  a  fresh 
appointment  of  its  Chairperson,  Members  and  Secretary  of  such  Committee  and  in  such  case  a  person 
who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for 
reappointment. 

(4) The appropriate  Government  shall  cause a  copy  of the notification issued under  sub-section (1) 
and a full report of any action taken under this section and the circumstances leading to such action to be 
laid before each House of Parliament or before each House of the State Legislature, where it consists of 
two Houses or where such Legislature consists of one House, before that House, as the case may be, at the 
earliest. 

12 

 
35.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government,  being  the 

appropriate Government, may, by notification, make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the periodical and annual reports to be sent under clause (f) of section 11; 

(b) the form and the manner in which the annual statement of accounts and annual report shall be 

prepared under sub-section (1) of section 13; 

(c) the forms, registers and other records to be maintained under clause (g) of section 14; 

(d)  the  form  in  which  an  association  of  advocates  may  apply  for  recognition  to  the  State  Bar 

Council under sub-section (1) or sub-section (2) of section 16; 

(e) the form in which a certificate of recognition shall be issued by the State Bar Council under 

sub-section (4) of section 16; 

(f)  the  form  in  which  an  advocate  shall  apply  for  admission  as  a  member  of  the  Fund  under        

sub-section (1) or sub-section (2) of section 18; 

(g)  the  principles  in  accordance  with  which  the  amount  payable  to  a  member  of  the  Fund  be 

reduced under sub-section (12) of section 18; 

(h) the manner of providing medical and educational facilities for the members of the Fund and 

their dependants under clause (b) of section 24; 

(i) the other benefits to be provided under clause (f) of section 24; 

(j) the form of appeal under sub-section (2) of section 25; 

(k)  the  value  and  design  of  stamps  to  be  printed  and  distributed  under  sub-section  (1)  of         

section 26; 

(l) the form and the manner in which accounts of the stamps shall be kept under sub-section (5) of 

section 26; 

(m)  the  value  of  stamps  not  exceeding  twenty-five  rupees  as  may  be  prescribed  under  the  first 

proviso to sub-section (1) of section 27; 

(n)  the  value  of  stamps  to  be  affixed  on  every  Vakalatnama  under  the  second  proviso  to              

sub-section (1) of section 27; 

(o) the manner of cancellation of stamps under sub-section (4) of section 27; 

(p) any other matter which is to be, or may be, prescribed. 

36. Power of State Government to make rules.—(1) The State Government, being the appropriate 
Government,  may,  by  notification,  make  rules  for  carrying  out  the  provisions  of  this  Act  and  not 
inconsistent with the rules, if any, made by the Central Government. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the periodical and annual reports to be sent under clause (f) of section 11; 

(b) the form and the manner in which the annual statement of accounts and annual report shall be 

prepared under sub-section (l) of section 13; 

(c) the forms, registers and other records to be maintained under clause (g) of section 14; 

(d)  the  form  in  which  an  association  of  advocates  may  apply  for  recognition  to  the  State  Bar 

Council under sub-section (1) or sub-section (2) of section 16; 

(e) the form in which a certificate of recognition shall be issued by the State Bar Council under 

sub-section (4) of section 16; 

(f)  the  form  in  which  an  advocate  shall  apply  for  admission  as  a  member  of  the  Fund  under         

sub-section (1) or sub-section (2) of section 18; 

13 

 
(g)  the  principles  in  accordance  with  which  the  amount  payable  to  a  member  of  the  Fund  be 

reduced under sub-section (12) of section 18; 

(h) the manner of providing medical and educational facilities for the members of the Fund and 

their dependants under clause (b) of section 24; 

(i) the other benefits to be provided under clause (f) of section 24; 

(j) the form of appeal under sub-section (2) of section 25; 

(k)  the  value  and  design  of  stamps  to  be  printed  and  distributed  under  sub-section  (1)  of          

section 26; 

(l) the form and the manner in which accounts of the stamps shall be kept under sub-section (5) of 

section 26; 

(m)  the  value  of  stamps  not  exceeding  twenty-five  rupees  as  may  be  prescribed  under  the  first 

proviso to sub-section (1) of section 27; 

(n)  the  value  of  stamps  to  be  affixed  on  every  Vakalatnama  under  the  second  proviso  to              

sub-section (1) of section 27; 

(o) the manner of cancellation of stamps under sub-section (4) of section 27; 

(p) any other matter which is to be or may be prescribed. 

37.  Rules  and  notifications  to  be  laid  before  Parliament  or  State  Legislature.—(1)  Every  rule 
made under this Act by the Central Government and every notification issued under section 32, shall be 
laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session 
for  a  total  period  of  thirty  days  which  may  be  comprised  in  one  session  or  in  two  or  more  successive 
sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive 
sessions  aforesaid,  both  Houses  agree  in  making  any  modification  in  the  rule  or  notification  or  both 
Houses  agree  that  the  rule  or  notification  should  not  be  made  or  issued,  the  rule  or  notification  shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule or notification. 

(2) Every rule made under this Act by a State Government and every notification issued under section 
32  shall  be  laid,  as  soon  as  may  be  after  it  is  made,  before  each  House  of  State  Legislature  where  it 
consists of two Houses, or where such Legislature consists of one House, before that House. 

38.  Saving.—The  provisions  of  this  Act  shall  not  apply  to  the  States  in  which  the  enactments 

specified in Schedule II are applicable.  

14 

 
 
 
SCHEDULE I 

[See sections 21(1) and 32(1)] 

Number of years as member of the Fund 

Rate at which amount 
payable 

(1) 

30 

29 

28 

27 

26 

25 

24 

23 

22 

21 

20 

19 

18 

17 

16 

15 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 

(2) 

Rs. 30,000 

Rs. 29,000 

Rs. 28,000 

Rs. 27,000 

Rs. 26,000 

Rs. 25,000 

Rs. 24,000 

Rs. 23,000 

Rs. 22,000 

Rs. 21,000 

Rs. 20,000 

Rs. 19,000 

Rs. 18,000 

Rs. 17,000 

Rs. 16,000 

Rs. 15,000 

Rs. 14,000 

Rs. 13,000 

Rs. 12,000 

Rs. 11,000 

Rs. 10,000 

Rs. 9,000 

Rs. 8,000 

Rs. 7,000 

Rs. 6,000 

Rs. 5,000 

Rs. 4,000 

Rs. 3,000 

Rs. 2,000 

Rs. 1,000 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

… 

15 

 
 
 
 
 
SCHEDULE II 

[See sections 32(2) and 38] 

1.  The Uttar Pradesh Advocates’ Welfare Fund Act, 1974 (6 of 1974). 
2.  The Bihar State Advocates’ Welfare Fund Act, 1983 (16 of 1983). 
3.  The Madhya Pradesh Adhivakata Kalyan Nidhi Adhiniyam, 1982 (9 of 1982). 
4.  The Andhra Pradesh Advocates’ Welfare Fund Act, 1987 (33 of 1987). 
5.  The Orissa Advocates’ Welfare Fund Act, 1987 (18 of 1987). 
6.  The Rajasthan Advocates’ Welfare Fund Act, 1987 (15 of 1987). 
7.  The Tamil Nadu Advocates’ Welfare Fund Act, 1987 (49 of 1987). 
8.  The Gujarat Advocates’ Welfare Fund Act, 1991 (14 of 1991). 
9.  The Goa Advocates’ Welfare Fund Act, 1995 (2 of 1997). 
10.  The Assam Advocates’ Welfare Fund Act, 1998 (XVIII of 1999). 
11.  The Maharashtra Advocates’ Welfare Fund Act, 1981 (LXI of 1981). 
12.  The Himachal Pradesh Advocates’ Fund Act, 1996 (14 of 1996). 
13.  The Kerala Advocates’ Welfare Fund Act, 1980 (21 of 1980). 
14.  The Karnataka Advocates’ Welfare Fund Act, 1983 (2 of 1985). 
15.  The West Bengal Advocates’ Welfare Fund Act, 1991 (XIII of 1991). 
16.  The Jammu and Kashmir Advocates’ Welfare Fund Act, 1997 (XXVI of 1997). 

__________ 

16 

 
 
