The Fund will be constituted by the appropriate Government ----the Central Government or the State Government, as the case may be. Twenty per cent of the annual enrollment fee of the advocates will be remitted to the Fund. Other sources of the Fund will include contribution from the State Bar Council or voluntary donation or contributions by the Bar Council of India or Associations of Advocates and sums collected by way of sale of welfare stamps to be affixed on the Vakalatnama to be filed by every advocate. Income accruing in the Fund will be exempted from the levy of Income Tax. The major sources of financing for the Fund will be the compulsory fixation of stamps on every Vakalatnama to be filed by every advocate in a court, tribunal, High Court or Supreme Court. The value of such stamps will range from Rs. 5 to Rs. 25. The appropriate Government will amend the rate at which the amount will be payable to the advocates on cessation of the practice.

    The Fund will be managed by a Trustee Committee consisting of Advocate General of a State as Chairman. The other ex-officio members of the Trustee Committee will be Law Secretary of concerned State Government, Home Secretary of the appropriate State Government or Chairman of the State Bar Council. One member will be from amongst Government pleaders or a public prosecutor as may be nominated by the appropriate Government. The advocates nominated by the State Bar Council will also be members of the Trustee Committee. The Secretary of the State Bar Council will function as Secretary to the Trustee Committee.

    The membership of the Fund will be compulsory for every advocate. The Trustee Committee will have the power to make ex-gratia grant to a member of the Fund in case of his or her hospitalization or involvement in major surgical operation or suffering from serious disabilities caused by tuberculosis, leprosy , paralysis , cancer and other similar diseases. Every advocate who has been a member of the Fund for five years will be entitled to receive on assessment of his or her practice certain sums according to length of his or her practice. However, if an advocate ceases to practise as a result of permanent disability, the Trustee Committee may pay such member the similar amount which would be entitled to him or her according to his or her length of practice. The interest of any member in the Fund or the right of a member of the Fund will not be attached. The Trustee Committee may also take the Group Life Insurance on the life of the members of the Fund and may use the funds for construction or maintenance of common facilities for them. Ten per cent of the total annual subscription will be spent on the construction or maintenance of such common facilities. Any person grieved with the decision of the Trustee Committee can file an appeal to the State Bar Council whose decision thereon will be final.

    In certain circumstances, the appropriate Government can supersede the Trustee Committee and appoint a Judge of a High Court to administer such Fund for a temporary period not exceeding six months.

    Sixteen States have so far enacted legislations for similar Welfare Fund for the advocates which are proposed to be saved in the Central Act.

    The proposed enactment will fulfil the long felt demands of advocates that Centre should enact a common law on Welfare Funds for the lawyers in the country.