Section 5 - Property of Society How Vested under the Societies Registration Act, 1860

Section 5 explains in whose name the movable and immovable property of a registered society is treated as vested when it is not vested in trustees. It also provides how that property may be described in civil and criminal proceedings.

Text of Section 5: Property of society how vested

Source: India Code - official text of the Societies Registration Act, 1860.

Meaning and legal effect of Section 5

1. Movable and immovable property

The provision covers both movable property, such as funds, equipment, furniture and vehicles, and immovable property, such as land and buildings, belonging to a society registered under the Act.

2. Property vested in trustees

Where property is already vested in trustees, Section 5 does not displace that arrangement. The applicable trust instrument, society rules, title documents and governing law must be examined to determine the trustees' authority and responsibilities.

3. Deemed vesting in the governing body

If property is not vested in trustees, the Act deems it vested, for the time being, in the society's governing body. This statutory arrangement facilitates the administration and legal identification of society property. It does not mean that individual committee members acquire personal ownership or may appropriate the property for themselves.

Section 16 defines the governing body by reference to the governors, council, directors, committee, trustees or other body entrusted under the society's rules with managing its affairs.

4. Description of property in legal proceedings

For civil and criminal proceedings, property covered by Section 5 may be described as property of the governing body using its proper title. This rule concerns the legal description and representation of society property; questions about who may institute or defend proceedings should also be considered under Section 6.

Can the governing body sell or transfer society property?

Section 5 is a vesting provision, not an unrestricted power of sale. Any proposed sale, mortgage, lease, gift or other disposition must comply with the applicable state legislation, society's memorandum and rules, governing resolutions, property title and any required approval. State amendments may impose special restrictions, including prior court approval for certain transfers of immovable property.

State-specific law: The Societies Registration Act, 1860 has been amended or replaced in various states. For example, restrictions on transfers under Section 5A may be relevant in Uttar Pradesh and Uttarakhand. Check the currently applicable state enactment and amendments before acting on any property transaction.

Judicial interpretation

The Supreme Court has explained that statutory vesting under Section 5 does not, by itself, establish that the society is a trust or constructive trust. Whether a trust exists depends on circumstances demonstrating its creation. See the Supreme Court judgment dated 5 August 2025, particularly its discussion of Section 5 and vesting of property in an executive committee.

Practical considerations for registered societies

Societies should maintain accurate title documents, registers of movable and immovable assets, governing body records, and resolutions authorising property-related decisions. Changes in office bearers do not make society assets their personal property. Any dispute about title, trusteeship or management should be assessed against the registered rules and applicable state law.

Related provisions and official resources

Read Section 4 (annual list of managing body), Section 6 (suits by and against societies), Section 13 (dissolution) and Section 16 (governing body).

Official reference: India Code - Societies Registration Act, 1860. Verify local amendments and registration requirements with the competent State Registrar of Societies.