Andhra Pradesh High Court
Judges : JAGMOHAN REDDY, VENKATESAM
Kakumani Rathiah - Appellant
Versus
Pathan Asha Bibi - Respondent
Decided On : 03-05-63
LIMITATION ACT - SECTION 10 - LEASES FOR VALUABLE CONSIDERATION - NOT BARRED BY LIMITATION - SECTION 10 NOT APPLICABLE - SUIT FILED BEYOND 12 YEARS BARRED BY LIMITATION.
Fact of the Case:
Plaintiffs filed a suit for recovery of suit schedule properties, mesne profits, and future rents on the ground that the mutawallis were not empowered to grant the lease for more than three years. The defendants claimed they took the leases from the predecessors in interest of the plaintiffs and have a right to be in possession of the suit lands. The trial court held that the suit was not barred by limitation, and the first appellate court upheld that finding.
Finding of the Court:
The court held that Section 10 of the Limitation Act, which provides that suits against persons in whom property has become vested in trust for any specific purpose are not barred by any length of time, does not apply to leases for valuable consideration. The court found that the leases in question were for valuable consideration and therefore Section 10 did not apply. The court also held that the suit was barred by limitation under Article 134-B of the Limitation Act, which provides a 12-year limitation period for suits for possession of immovable property.
Issues: Whether Section 10 of the Limitation Act applies to leases for valuable consideration.
Ratio Decidendi: The court relied on the decision of the Supreme Court in Gurushiddaswami v. D. M. D. Jain Sabha, AIR 1953 S C 514, which held that Section 10 of the Limitation Act does not apply to assignments for valuable consideration. The court also relied on the decision of the Madras High Court in Narsaya Udpa v. Venkataramana Bhatta, 23 Mad LJ 260, which held that Articles 142 and 144 of the Limitation Act are applicable to cases of prescription of limited interests as mortgagee or permanent lessee.
Final Decision: The court set aside the judgments of both the courts below and allowed the appeal with costs throughout.
( 2 ) THE brief facts for purposes of determination of this question involved in the case may now be stated. The respondents have filed a suit for recovery of the suit schedule properties and for mesne profits and for future rents on the ground that the mutawallis were not empowered to grant the lease for more than three years. In the instant case, the leases that were granted by Mutawallis under Ex. B. 16, dated 21-5-1873 were for 92 years and under Ex. A-2 dated 16-1-1931 for 36 years. The appellants as defendants stated that they took the leases from the predecessors, in interest of the plaintiffs and that they have a right to be in possession of the suit lands and that, since the suit was filed after 12 years after the death of the husbands of plaintiffs 1 and 2, it is barred by limitation and further that the suit was not maintainable because the plaintiffs had accepted the rents subsequent to the death of the husbands of plaintiffs 1 and 2 which amounted to an acquiescence. Several issues were framed on those pleadings viz. ,"1. Whether the lease dated 16-1-1931 in favour of the defendants is not true, valid and binding on the plaintiff ? 2. Whether the receipts relied on by the defendants are true, valid and binding on the plaintiffs ? 3. Whether the plaintiffs are entitled to possession ? 4. Whether the grant in favour of plaintiffs is of both the warans ? 5. Whether plaintiffs are entitled to future profits for the years Jaya and Manmadha ? 6. Whether plaintiffs are entitled to any future profits at all ? 7. To what relief ?"an additional issue was also framed which is pertinent for the purpose of this second appeal viz. , whether any of the suit claims are barred by limitation. Before dealing with the actual question involved, it may be necessary to state that the suit was filed on 30-9-54. The death of the 2nd plaintiffs husband took place on 3-12-1941 as evidenced by the death extract, Ex. B 50 and in so far as the 1st plaintiffs husband is concerned, he died in or about 1940. On the pleadings, the trial Court held that the lease dated 10-1-1931 is true, but not binding on the plaintiffs, that the receipts of rent for two years, Jaya and Manmadha were true, valid and binding on the plaintiffs, that the plaintiffs were entitled to possession of the suit lands, that the grant in favour of the plaintiffs was of both the warams and that the plaintiffs were not entitled to future profits for the years Jaya and Manmadha as the amount was already paid. In so far as the other years are concerned, the trial Court held that the plaintiffs were entitled to recover rents. One other fact to which we would like to advert at this stage is that the rent which was reserved under the lease deed. Ex. B. 16 for an extent of 8 acres was Rs. 37 while the rent which was reserved under the lease deed, Ex. A. 2 for an extent of Ac. 3-50 cents was Rs. 19-12-7. The trial Court held on the additional issue that the suit was not barred, by limitation. In appeal, the first appellate Court also maintained that finding, The simple question in this appeal is whether Section 10 of the Limitation Act applies and if it dues not, then it is conceded that the period prescribed under Article 134-B would apply. Section 10 of the Act reads as follows :"notwithstanding anything hereinbefore contained, no suit against a person in whom property has become vested in trust for any specific purpose, or against his legal representatives or assigns (not being assigns for valuable consideration), for the purpose of following in his or their hands such property, or the proceeds thereof, or for an account ot such property or proceeds, shall be barred by any length of time. For the purpose of this section any property comprised in a H
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