Andhra Pradesh High Court
Judges : K.SUBBA RAO, RANGANADHAM CHETTY
Vankamamidi Balakrishnamurthi - Appellant
Versus
Gogineni Sambayya - Respondent
Decided On : 12-20-57
LIMITATION ACT - SECTION 10 - INTERPRETATION - EXPRESS TRUSTEE - CONSTRUCTIVE TRUSTEE - MANAGER OF HINDU RELIGIOUS ENDOWMENT - DISTINCTION - APPLICABILITY OF SECTION 10 TO DE FACTO MANAGER.
Fact of the Case:
The suit was for an account of profits which one Balakrishnaiah, the deceased, had received in respect of a trust which he was managing. The suit was decreed for Rs. 1,476 against the said Balakrishnaiahs legal representatives, namely, defendants 1 to 3 and for another sura of Rs. 464-4-0 against not only the legal representatives but a lessee (4th defendant) as well.
Finding of the Court:
1. Section 10 of the Limitation Act applies only to express trusts and excludes all other categories. 2. The amendment to Section 10 in 1929, which deemed the manager of a Hindu religious endowment to be an express trustee, was intended to remove the distinction between de jure and de facto managers for the purposes of limitation. 3. A de facto manager of a Hindu religious endowment is an express trustee within the meaning of Section 10 and is subject to a permanent liability.
Issues: 1. Whether Section 10 of the Limitation Act applies to constructive trustees? 2. Whether the amendment to Section 10 in 1929, which deemed the manager of a Hindu religious endowment to be an express trustee, was intended to remove the distinction between de jure and de facto managers for the purposes of limitation?
Ratio Decidendi: 1. The language of Section 10 of the Limitation Act, which refers to "persons in whom property has become vested in trust for any specific purpose," is explicit enough to show that it refers only to express trustees. 2. The statement of objects and reasons for the amendment to Section 10 in 1929 indicates that the amendment was intended to remove the distinction between de jure and de facto managers for the purposes of limitation. 3. The use of the word "manager" in the amendment to Section 10 without any qualification or limitation indicates that the amendment was intended to apply to all managers, regardless of whether they are de jure or de facto.
Final Decision: The appeal is dismissed with costs. The cross-objections are dismissed with costs.
( 1 ) I have had the advantage of perusing the instructive judgment prepared by my learned brother, Ranganadham Chetty J. I do not propose to express my view on the interpretation of the second paragraph of Section 10 of the Limitation Act. I would rather prefer to base my conclusion on the provisions of Article 120 of the Limitation Act.
( 2 ) THE facts relevant to appreciate the question raised may be briefly stated. The Endowments Board framed a scheme in the year 1927 for the management of the temple of Malleswaraswami situated in Balijepalli Agraharam of Guntur District. Under the scheme, three non-hereditary trustees were appointed. Prior to the scheme, three persons, claiming to be hereditary trustees, were in possession of the properties belonging to the temple. After the scheme, two of them surrendered possession but one Balakrishniah set up the claims that he prescribed for the right of trusteeship by adverse possession and that he was entitled to continue in management undisturbed so long as he was accounting for the profits of the deity. That plea was not accepted by the trustees and they took possession of the lands through court on 24-12-1942. Thereafter, the trustees filed a suit for an account of the profits realised by Balakrishniah. As he died prior to the decree, it was continued against his legal representatives. The suit was resisted on the ground that it was barred by limitation.
( 3 ) A suit for accounts against a De facto trustee is not specially provided for by any of the Articles of the Limitation Act, and, therefore, it is governed by the residuary Article. (See Yerukola v. Yerukola, ILR 45 Mad 648: (AIR 1922 Mad 150) (FB ). Under that Article, a suit, for which no period of limitations provided elsewhere in the schedule, should be filed within six years when the right to sue accrues. The Judicial Committee in Mt. Bolo v. Mt. Koklan, ILR 11 Lah 657: (AIR 1930 PC 270), held that a right to sue accrues only when the defendant has infringed or at least has clearly and unequivocally threatened to infringe, the right asserted by the plaintiff in the suit The Judicial Committee in Annamalai Chettiar v. Mutukaruppan Chettiar, ILR 8 Rang 645: (AIR 1931 PC 9), applied the aforesaid principle to a suit for accounts against a trustee and held that it would not be barred by Article 120 if the defendant was unable to specify any date at which he denied the claim to account. In the present case, the defendants have not established that they had denied the plaintiffs claim to account within six years from the date of the filing of the suit. The suit, therefore, is not barred by limitation.
( 4 ) IN this view, I agree with my learned brothers conclusion that the suit was not barred by limitation and that the appeal and the memorandum of cross-objections should be dismissed with costs. Ranganadham Chetty, J.
( 5 ) THIS is a second appeal arising out of the decision in O. S. 31 of 1945 on the file of the District Munsifs Court, Rcpalle. The suit was for an account for profits which one Balakrishnaiah, the deceased, had received in respect of a trust which he was managing. The suit was decreed for Rs. 1,476 against the said Balakrishnaiahs legal representatives, namely, defendants 1 to 3 and for another sura of Rs. 464-4-0 against not only the legal representatives but a lessee (4th defendant) as well. In the appeal before the Subordinate Judge, Tenali, there was a slight modification of the decree reducing the latter figure to Rs. 122.
( 6 ) THE facts in brief are : The suit trust relates to Malleswaraswami Temple situated in Balijipalli Agraharam of Guntur District. The temple is the owner of 5. 80 cents of land in the said village. It was in the possession of three persons Balakrishnaiah, Bhanumurthi and Suryauarayana claiming to be the hereditary trustees of the temple. The Endowments Board framed a scheme for the management of the temple in 1927 and appointed three non-hereditary trustees to manage t
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