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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 29(c) of the Hyderabad Limitation Act 2 of 1322 F
  • The Part B States (Laws) Act, 1951
  • Section 14 of the Hyderabad Endowment Regulation, Section 15 of the Indian Limitation Act, 1908
  • Section 15 of the Muslim Wakfs Act, 1954
  • Section 14 of the Indian Limitation Act, 1908
  • Article 142 of the Indian Limitation Act 1908
  • Section 9(2) of the Muslim Wakfs Act, 1954
  • Section 30 of the Indian Limitation Act 1908
  • Article 149 of the Indian Limitation Act, 1908
  • Indian Limitation Act, 1908 (Article 142)
  • The Religious Endowments Act, 1863
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 29(c) of the Hyderabad Limitation Act 2 of 1322 F
  • The Part B States (Laws) Act, 1951
  • Section 14 of the Hyderabad Endowment Regulation, Section 15 of the Indian Limitation Act, 1908
  • Section 15 of the Muslim Wakfs Act, 1954
  • Section 14 of the Indian Limitation Act, 1908
  • Article 142 of the Indian Limitation Act 1908
  • Section 9(2) of the Muslim Wakfs Act, 1954
  • Section 30 of the Indian Limitation Act 1908
  • Article 149 of the Indian Limitation Act, 1908
  • Indian Limitation Act, 1908 (Article 142)
  • The Religious Endowments Act, 1863
Smart Summary

Factual and Procedural Background

The suit concerns five tiled rooms situated within the compound of Dargah Hazrat Habeeb Ali Shah Saheb at Katalmandi, Hyderabad. The dargah was dispossessed of the property by the defendants on or about 20 September 1937, a fact conceded by plaintiffs’ counsel. Under the Hyderabad Limitation Act, 2 of 1322 F, no limitation period applied to suits for recovery of wakf property. On 1 April 1951, the Part B States (Laws) Act, 1951 extended the Indian Limitation Act, 1908 to Hyderabad, repealing the local Limitation Act and inserting Section 30 which allowed a two-year transitional window for actions where the new limitation period was shorter.

On 3 February 1956, the mutawalli of the dargah and the Board of Muslim Endowments, Hyderabad, instituted the present suit for possession. The trial court dismissed the suit as time-barred under Article 142 of the Indian Limitation Act, 1908. The High Court of Andhra Pradesh reversed, holding that the Hyderabad Limitation Act continued to govern the claim. The defendants obtained special leave to appeal to the Supreme Court, resulting in the present decision.

Legal Issues Presented

  1. Whether the suit is governed by the Indian Limitation Act, 1908 or by the repealed Hyderabad Limitation Act.
  2. If the Indian Limitation Act applies, whether Section 30 of the Part B States (Laws) Act, 1951 preserved the cause of action by granting a two-year grace period.
  3. Whether the action qualifies as a suit “by or on behalf of the State Government” so as to attract Article 149 of the Indian Limitation Act (no limitation period).
  4. Whether Sections 14 or 15 of the Indian Limitation Act permit exclusion of time due to earlier proceedings or injunctions, thereby saving the suit from being time-barred.

Arguments of the Parties

Plaintiffs / Respondents

  • Contended that applying the Indian Limitation Act would confiscate an existing cause of action because no reasonable time was provided; hence the Hyderabad Limitation Act should continue to apply.
  • Asserted that the Board of Muslim Endowments (allegedly equivalent to the Board of Wakfs under the Muslim Wakfs Act, 1954) is an agent of the Central/State Government; thus Article 149 (no limitation against the State) governs the suit.
  • Alternative claim that the mutawalli is the Government’s agent and the limitation period should commence only from the date of his appointment.
  • Sought exclusion of time under Sections 14 and 15 of the Indian Limitation Act on account of earlier injunctions and summary proceedings under Hyderabad Endowment Regulations.

Defendants / Appellants

  • Argued that, after 1 April 1951, the Indian Limitation Act exclusively governs all suits; Article 142 prescribes a 12-year limitation from dispossession, rendering the suit barred.
  • Maintained that Section 30 granted only a two-year window (until 31 March 1953), which the plaintiffs failed to utilise.
  • Denied that the Board of Muslim Endowments or the mutawalli acts as an agent of the State; therefore Article 149 is inapplicable.
  • Contended that no injunction prevented filing of the present suit, negating reliance on Sections 14 and 15.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tamlin v. Hannaford (1949 2 AER 327) A corporation can, in limited circumstances, act as an agent of the State. Cited by plaintiffs; Supreme Court distinguished it, holding that the Board of Muslim Endowments is a statutory corporation not acting as State agent.
State Trading Corporation of India Ltd. v. Commercial Tax Officer, AIR 1963 SC 811 Discussion of when a corporation may be equated with, or act on behalf of, the State. Relied on by plaintiffs; Court ruled the precedent inapplicable because the Board’s statutory scheme indicates independence from the Government.
Jewun Doss Sahoo v. Shah Kubeer-ood-Deen (PC) Under pre-1863 law, mutawalli could be treated as Government procurator, giving fresh cause of action upon appointment. Court held the reasoning obsolete after the Religious Endowments Act, 1863; mutawalli no longer sues on behalf of Government.
Shaikh Laul Mahomed v. Lalla Brij Kishore Post-1863, mutawalli is not a Government agent in recovery actions. Approved by the Court, reinforcing that Article 149 does not apply.
Behari Lal v. Muhammad Muttaki Same principle as above regarding mutawalli’s independent capacity. Cited to refute plaintiffs’ reliance on Government-agency theory.

Court's Reasoning and Analysis

1. Applicable Limitation Statute. The Supreme Court applied the general rule that the law of limitation in force on the date of institution governs the suit. Because the Indian Limitation Act, 1908 had already been extended to Hyderabad on 1 April 1951, it controlled the claim filed in 1956.

2. Effect of Section 30 of the Part B States (Laws) Act, 1951. Section 30, intended to soften hardship where shorter limitation periods were introduced, granted plaintiffs a two-year grace period after 1 April 1951. The prior Hyderabad law gave an unlimited period; Article 142 of the Indian Limitation Act (12 years) was therefore “shorter,” making Section 30 applicable. However, because the suit was not filed within the two-year window, the benefit of Section 30 was lost.

3. Rejection of Article 149 Argument. Analysing the statutory framework of the Muslim Wakfs Act, 1954, the Court held that the Board of Muslim Endowments is a separate statutory corporation, not an agent of the State. Likewise, a mutawalli’s role is independent. Therefore, Article 149 (which exempts the State from limitation) does not apply.

4. Starting Point of Limitation. Under Article 142, time begins from actual dispossession. The dispossession occurred on 20 September 1937; the subsequent absence of limitation under Hyderabad law did not reset that date.

5. Sections 14 and 15 of the Limitation Act. The Court found no injunction preventing institution of the present suit; hence Section 15 was inapplicable. The new argument under Section 14 (exclusion of time spent in earlier summary proceedings) involved mixed questions of fact and law, was not raised below, and was therefore refused consideration.

Holding and Implications

APPEAL ALLOWED; HIGH COURT DECREE SET ASIDE; TRIAL COURT DISMISSAL RESTORED.

The suit for recovery of wakf property, instituted more than 12 years after dispossession and beyond the two-year grace period granted under Section 30, is time-barred. The decision clarifies that:

  • Section 30 of the Part B States (Laws) Act affords only a two-year window, not perpetual immunity, when shorter limitation periods are introduced.
  • Statutory bodies such as Boards of Wakfs are not automatically agents of the State for limitation purposes.
  • Dispossession remains the starting point under Article 142 even if earlier local law imposed no limitation.

No broader precedent was created beyond reaffirming these limitation principles, and each party was left to bear its own costs in the Supreme Court.

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    Syed Yousuf Yar Khan And Others v. Syed Mohammed Yar Khan And Others

    Bachawat, J.— This appeal arises out of a suit for the recovery of possession of five tiled rooms inside the compound of a dargah at Katalmandi, Hyderabad. The property belongs to Dargah Hazrat Habeeb Ali Shah Saheb. The dargah while in possession of the property was dispossessed by the defendants long ago. Counsel for the plaintiffs conceded before us that the dargah was dispossessed of the property on or about September 20, 1937, when the defendants filed objections in the course of certain proceedings for enrolment of the property as endowed property under the Hyderabad Endowment Regulations. While the Hyderabad Limitation Act 2 of 1322 F was in force in Hyderabad, there was no limitation for a suit for recovery of a wakf property. Section 29(c) of the Act applied to suits relating to wakf. By virtue of Section 29(c), a suit for recovery of a wakf property was outside the Act. On April 1, 1951, the Part B States (Laws) Act, 1951, came into force and extended the Indian Limitation Act 1908 to Hyderabad, and the corresponding law in force in Hyderabad stood repealed. On February 3, 1956, the mutawalli of the dargah and the Board of Muslim Endowments, Hyderabad, instituted the present suit for recovery of the property from the defendants. The suit was substantially a suit on behalf of the wakf who while in possession of the property had been dispossessed. On the assumption that the Indian Limitation Act, 1908 applies to the suit, prima facie the suit would be governed by Article 142 of that Act and would be barred by limitation. The trial court dismissed the suit on the ground that it was so barred. On appeal, the High Court of Andhra Pradesh held that the suit was governed by the Hyderabad Limitation Act and was not barred by limitation. On this finding the High Court decreed the suit. Some of the defendants now appeal to this Court by special leave.

    2. The High Court held that the application of the Indian Limitation Act 1908 to the suit would bar and confiscate the existing cause of action for the recovery of the suit property, as the Part B States (Laws) Act while extending the Indian Limitation Act to Hyderabad did not allow a reasonable time to the plaintiffs for enforcing the existing cause of action and consequently the Indian Limitation Act could not affect the suit and the suit was governed by the Hyderabad Limitation Act. Now, the Part B States (Laws) Act 1951 was passed on February 22, 1951. The Act came into force on April 1, 1951 by virtue of a notification of the Central Government dated March 7, 1951 and published in the gazette on March 10, 1951. It extended to the Part B States the Indian Limitation Act 1908 as amended with the addition of Section 30 which is in these terms:

    “30. Provision for States for which the period prescribed is shorter than that prescribed by any law previously in force in a Part B States.— Notwithstanding anything herein contained, any suit for which the period of limitation prescribed by this Act is shorter than the period of limitation prescribed by any law corresponding to this Act in force in a Part B State which is repealed by the Part B States (Laws) Act, 1951, may be instituted within the period of two years next after the coming into force of this Act in that Part B State or within the period prescribed for such suit by such corresponding law, whichever period expires first.”

    3. Section 30 should be construed liberally considering that it is intended to alleviate hardship consequential on the introduction of a shorter period of limitation. Ex facie, Section 30 applies to a suit for which the period of limitation prescribed by the Indian Limitation Act 1908 is shorter than the period of limitation prescribed by the corresponding law in force in the Part B State. Now, the Hyderabad Limitation Act did not apply to a suit for recovery of possession of a wakf property. The result was that under the corresponding law in force in Hyderabad, there was no limitation for such a suit. In other words, the period of limitation prescribed for the suit by the corresponding law in Hyderabad was an unlimited period. Article 142 of the Indian Limitation Act 1908, applies to a suit for recovery of possession of the wakf property. As it prescribes a shorter period of limitation for the institution of the suit, Section 30 enabled the plaintiffs to institute the suit within a period of two year after April 1, 1951. The Part B States (Laws) Act, 1951 while extending the Indian Limitation Act, 1908 to Hyderabad thus allowed the plaintiffs reasonable time to institute the suit for recovery of the property. The extension of the Indian Limitation Act, 1908 to Hyderabad and the consequential change in law prescribing a shorter period of limitation did not confiscate the existing cause of action and must be regarded as an alteration in the law of procedure for the enforcement of the cause of action. We must, therefore, apply the normal rule that the law of limitation applicable to the suit is the law in force at the date of the institution of the suit. The suit is, therefore, governed by the Indian Limitation Act, 1908. The plaintiffs did not institute the suit within two years after April 1, 1951. They cannot therefore avail themselves of the benefit of Section 30.

    4. Counsel submitted that the present suit was a suit by or on behalf of the State Government and was therefore governed by Article 149 of the Indian Limitation Act, 1908. He submitted that the Board of Muslim Endowments, Hyderabad, which according to him was the Board of Wakfs constituted under the Muslim Wakfs Act, 1954, was an agent of the Central Government. By Section 9(2) of the Muslim Wakfs Act, 1954, the Board of Wakfs is a body corporate and by Section 15 of this Act, the Board is vested with the right of general superintendence of wakfs and is empowered to take measures for the recovery of the lost properties of any wakf and to initiate and defend suits and proceedings relating to wakfs. Counsel submitted that a corporation may be an agent of the State Govrnment, and in support of this contention relied upon Halsbury's Laws of England, 3rd Edn., Vol. 9, p. 10 — Tamlin v. Hannaford (1949) 2 AER 327, and the observations of Shah, J., in State Trading Corporation of India Limited v. Commercial Tax Officer AIR 1963 SC 811. He submitted that the State Government has delegated its functions of superintendence over wakfs to the Board of Wakfs and the Board should therefore be regarded as an agent of the State Government. We are unable to accept this contention. By the Religious Endowments Act, 1863, the Government divested itself of the management and superintendence of religious endowments which was vested in it under Regulation 19 of 1810 and Regulation 7 of 1817. The Board of Wakfs though subject to the control of the State Government, is a statutory corporation and is vested with statutory powers, functions and duties. The Board has power to hold property and is in control of the wakf fund (Sections 9 and 48). The State Government has no concern with the property vested in the Board save during the period of supersession of the Board under Section 64. Nor is the State Government liable for any expenditure incurred by the Board in connection with the administration under the Act (Section 54). The Board of Wakfs is not discharging a governmental function. The Act nowhere says that the Board would act as the agent of the State Government. It rather indicates that the Board is not the agent of the Government and the Government is not responsible for its acts. We must, therefore, hold that the Board of Wakfs is not an agent of the State Government and a suit instituted by it for the recovery of a wakf property is not a suit by or on behalf of the State Government.

    5. Counsel next submitted that the mutawalli is the agent of the State Government and that in any event the limitation for a suit by the mutawalli starts on the date of his appointment. In support of this contention counsel relied upon the decision in Jewun Doss Sahoo v. Shah Kubeer-ood-Deen where the Privy Council held that under the law then in force it was the duty of the Government to protect endowments and the mutawalli in that case was the procurator of the Government and his right to sue arose on his being appointed mutawalli. This ruling of the Privy Council was given under Regulation 19 of 1810. Since the passing of the Religious Endowments Act, 1863, the mutawalli cannot be regarded as a procurator of the Government. He is to appointed by the Government, nor does he manage the endowment on its behalf and a suit by him for the recovery of the wakf property cannot now be regarded as a suit on its behalf, see Shaikh Laul Mahomed v. Lalla Brij Kishore and Behari Lal v. Muhammad Muttaki. If the wakf while in possession of its property is dispossessed, it has an immediate right to sue for recovery of the property and the limitation for the suit begins to run. On his appointment, the mutawalli acquires no new right of suit and his appointment does not give him a fresh starting point of limitation for the recovery of the property. The suit, therefore, is not by or on behalf of the State Government and Article 149 has no application. The suit is governed by Article 142. The date of dispossession of the wakf is the starting point of limitation under this article. It was suggested that as limitation did not run under the Hyderabad Limitation Act, the date when the Indian Limitation Act, 1908 came into force in Hyderabad should be regarded as the starting point of limitation. This suggestion has no force. During the currency of the Hyderabad Limitation Act, limitation did not run but the Act did not change the date of dispossession. That date was September 20, 1937. For the purposes of Article 142 of the Indian Limitation Act 1908, that date must be regarded as the starting point of limitation.

    6. We may now briefly notice two contentions based on Sections 14 and 15 of the Indian Limitation Act, 1908. On August 13, 1941, the defendants instituted a suit for a declaration of their title to the property and obtained an injunction restraining the enrolment of the property in the Book of endowment. On March 10, 1942, the suit was dismissed. On May 18, 1942, the property was enrolled in the Book of Endowment. On May 21, 1942, summary proceedings for the recovery of the property by the dargah were started under Section 14 of the Hyderabad Endowment Regulation before the Additional Chief Judge, City Civil Court, Hyderabad at the instance of the Director, Ecclesiastical Department of the Government of Hyderabad. On June 20, 1942, the defendants filed in the High Court an appeal from the decree dismissing their suit and obtained an interim injunction restraining their eviction from the property. On July 25, 1942, the interim injunction was made absolute. By an order dated February 14, 1942, the Additional Chief Judge consigned the records of the proceeding under Section 14 to the record room and directed that action would be taken after the disposal of the case in the High Court. On October 15, 1945, the High Court allowed the appeal and remanded the suit to the trial court for disposal according to law. On August 28, 1948, the trial court dismissed the suit. On September 21, 1955, an appeal filed by the defendants from this decree was dismissed. On, these facts, it was contended before the High Court that in view of Section 15 of the Indian Limitation Act, 1908, in computing the period of limitation prescribed for the suit, the plaintiffs were entitled to exclude the period of time during which ejectment of the defendants in the proceeding under Section 14 of the Hyderabad Endowment Regulation had been stayed by the order of injunction. The High Court rightly pointed out that there was no injunction restraining the institution of the present suit, and the plaintiffs were not entitled to any exclusion of time under Section 15. This contention is no longer pressed. In this Court, however, for the first time counsel sought to argue that under Section 14 of the Indian Limitation Act, 1908 the plaintiffs were entitled to the exclusion of the entire period from May 21, 1942 during which the summary proceeding under the Hyderabad Endowment Regulation was pending. The contention based on Section 14 raises mixed questions of law and fact. It was not raised in the courts below. There is no mention of this contention even in the petition for special leave to appeal or in the statement of case. We think that the plaintiffs ought not to be allowed to raise this contention in this Court for the first time. Counsel submitted that the plaintiffs are entitled to revive and continue the proceeding under Section 14 of the Hyderabad Endowment Regulation. We do not know whether that proceeding is still pending. The question whether the plaintiffs are entitled to revive and continue that proceeding under the laws now in force does not arise for consideration in this case and we express no opinion on it. All we need say is that our decision in this appeal will not affect the right, if any, of the plaintiffs to revive and continue the proceeding.

    7. As the suit was instituted more than 12 years after the date of dispossession, it is barred by limitation and must be dismissed. The trial court rightly dismissed the suit. The High Court was in error in reversing this decree.

    8. In the result the appeal is allowed. The decree of the High Court is set aside and the decree of the trial court is restored. The suit is dismissed. There will be no order as to the costs of this appeal.

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    Syed Yousuf Yar Khan And Others v. Syed Mohammed Yar Khan And Others
    (Jan 4, 1967)