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L. Machi Reddy v. Wakf Board Of A.P. At Hyderabad

Andhra Pradesh High Court
Mar 27, 1972
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Summary of the Opinion

Factual and Procedural Background

The Wakf Board, Andhra Pradesh instituted a suit for recovery of possession alleging that properties covered by title deed No. 490 were endowed to Peerlu and thus constituted wakf property belonging to the institution of Peerlu (Ashurkhanna). The suit alleged that a former Mutwalli, Aggi Dastagiri Sab, and his co-sharers alienated items 1 and 2 (S. Nos. 328/1 and 328/3 of Tappetla village) to one Machireddi under a sale deed dated 1-2-43, and item 3 (S. No. 453 of Tappetla village) to the 2nd defendant under a sale deed dated 16-10-46. The Wakf Board contended that the manager and co-sharers had no authority to effect those sales and that the transfers were illegal and void. After an inquiry the Wakf Board declared the suit properties to be wakf properties under Section 5 of the Wakf Boards Act on 26-3-64. As the defendants did not hand over possession, the suit was instituted on 14-8-1967.

At trial, the court held that the properties were wakf properties but found the suit barred by limitation and that the defendants had perfected title by adverse possession; accordingly the plaintiff's suit for recovery of possession was held not maintainable. The Wakf Board appealed to the District Judge, who allowed the appeal, held the properties to be wakf properties, and found the suit within time because Article 96 of the Indian Limitation Act applied. The District Judge did not address the question of adverse possession.

The present (second) appeal arises from the District Judge's judgment dated 4.8.70 in A.S. No. 122/69. The principal contention in this appeal was that Article 144 of the Limitation Act, and not Article 96, applied so the suit was time-barred.

Legal Issues Presented

  1. Whether Article 96 of the Indian Limitation Act applies to the Wakf Board's suit for recovery of wakf property or whether Article 144 applies.
  2. Whether the Wakf Board qualifies as a "manager" within the meaning of Article 96 of the Limitation Act, permitting it to invoke the twelve-year limitation period set out in that Article.
  3. Whether the Mutwalli and his co-sharers who effected the transfers can be characterized as "managers" within Article 96.
  4. Whether Section 3 of the Extension of Limitation Act, 29 of 1959, applies to extend limitation in this case.
  5. Whether the defendants perfected title by adverse possession so as to defeat the Wakf Board's suit for recovery of possession.

Arguments of the Parties

Defendants' Arguments

  • The suit was time-barred.
  • The defendants had perfected title by adverse possession.
  • The sales by the Mutwalli and co-sharers were effected to carry out repairs of the Peerlu (suggesting a justification for the alienations).

Wakf Board (Plaintiff) / Appellate Position before District Judge

  • The properties are wakf properties; the Wakf Board declared them as such under Section 5 of the Wakf Boards Act on 26-3-64.
  • Article 96 of the Indian Limitation Act applies to suits by a manager to recover property alienated by a previous manager; hence the suit was within time when brought after constitution of the Wakf Board.
  • The Wakf Board relied on its statutory powers under Section 15 of the Wakfs Act (including clauses (h) and (i) of sub-section (2)) to institute suits for recovery of lost wakf property and to manage and supervise wakfs, thereby qualifying it as a "manager" for Article 96 purposes.

Appellant's Argument in the Present Appeal (as specified)

  • The principal contention advanced by the learned Advocate for the appellant was that Article 144 of the Limitation Act applies to the suit and not Article 96, which would render the suit time-barred.

Table of Precedents Cited

The opinion refers generally to prior judicial authority but does not identify or cite any specific cases by name.

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court undertook a statutory and purposive analysis focusing primarily on the meaning and scope of Article 96 of the Limitation Act and the statutory powers of the Wakf Board under the Wakfs Act. The key steps in the court's reasoning were:

  1. Interpretation of Article 96: The court quoted Article 96 (the description, twelve-year period, and the time from which the period begins to run) and observed that the Article contemplates a suit by "the manager" of a religious or charitable endowment to recover property transferred by a previous manager. The court emphasized that "manager" in Article 96 is not restricted to a de facto manager and may include a de jure manager or any person or committee who, in law, constitutes the manager or is entrusted with the management of the endowment (for example, a committee appointed by a court or an endowments department).
  2. Characterization of the Mutwalli and co-sharers: The court held that as long as the Mutwalli and co-sharers acknowledged their Mutwalliship (and no repudiation of that status was pleaded), they could properly be characterised as managers within Article 96. The court found no pleaded case of repudiation of Mutwalliship here.
  3. Capacity of the Wakf Board to sue as manager: The court analysed Section 15 of the Wakfs Act, noting the Board's general supervisory powers over wakfs and its statutory duties to ensure proper maintenance, control and administration of wakfs and appropriate application of income. The court observed that clauses (h) and (i) of sub-section (2) specifically empower the Board to take measures for recovery of lost wakf properties and to institute and defend suits relating to wakfs. From these statutory provisions the court concluded that the Wakf Board, by virtue of its supervisory remit and specific powers to recover property, qualifies as a "manager" within the meaning of Article 96 and thus can sue under that Article.
  4. Temporal commencement of limitation under Article 96: The court explained that Article 96 provides alternate starting points for the twelve-year period — death, resignation or removal of the transferor, or the date of appointment of the plaintiff as manager, whichever is later. The court held that it is not necessary for the transferor to be already removed, to have resigned or died for Article 96 to become applicable; limitation can run from the date of appointment of the plaintiff-manager. Given the Wakf Board's supervisory role and its constitution date (4-3-61), a suit instituted on 4-3-67 was within the twelve-year period.
  5. Rejection of the applicability of the Extension of Limitation Act, 1959 (Section 3): The court noted a common ground that Section 3 would not apply because dispossession or discontinuation of possession must have occurred after 14-8-47 and before 7-5-54 for that section to permit suits filed at any time after 14-8-47 but before 7-5-54. Since the transfers here occurred earlier than 14-8-47, Section 3 had no application.
  6. Adverse possession argument: The court rejected the defendants' contention that they had perfected title by adverse possession. The court explained the settled legal position that where property belonging to a religious endowment is alienated by the manager, the alienee's possession becomes adverse to the institution only from the date of termination of the tenure of office of the alienating manager. So long as the alienating manager holds office, the alienation is not treated as unlawful for limitation/adverse-possession purposes unless set aside in proper proceedings; adverse possession does not commence during the transferring manager's tenure. On that basis the court rejected the adverse-possession argument.
  7. Conclusion on applicable Article: Having rejected the competing arguments, the court agreed with the District Judge that Article 96 applies to this suit and that the suit was filed within time under that Article.

Holding and Implications

Holding: The court dismissed the second appeal. The appeal "fails and is dismissed with costs." (Final line of the opinion: "For the reason stated above, the second appeal fails and is dismissed with costs. No leave.")

Implications:

  • The court held that Article 96 of the Indian Limitation Act applies to a suit by the Wakf Board to recover wakf property alienated by a previous manager, because (a) the term "manager" in Article 96 includes a de jure manager and those exercising supervisory or managerial functions under statute, and (b) the Wakf Board, by virtue of Section 15 of the Wakfs Act (including clauses (h) and (i) of sub-section (2)), qualifies as such a manager.
  • Because Article 96 applies and the Wakf Board was constituted on 4-3-61, the suit instituted on 4-3-67 was within the twelve-year period specified by Article 96.
  • The defendants' claim of perfected title by adverse possession was rejected on the ground that adverse possession of a transferee of wakf property cannot be said to commence until the tenure of the alienating manager ends; therefore the defendants could not rely on adverse possession to defeat the Wakf Board's suit in the circumstances of this case.
  • The opinion does not set out or identify any new judicial precedents by name; it applies established principles of limitation law and the statutory powers of the Wakf Board to the facts. The direct effect is that the Wakf Board's claim for recovery of possession is sustained and the defendants' title and limitation defenses fail in this proceeding.
Show all summary ...

1. This is an appeal from the judgment of the learned Addl. District Judge of Cuddapah given in A.S No. 122/69 on 4.8.70 whereby the learned Additional District Judge allowed the appeal and decreed the plaintiff's suit.

2. The facts which give rise to this appeal are that the Wakf Board, Andhra Pradesh instituted the suit for recovery of possession alleging inter alia that the properties covered by title deed No. 490 are endowed to Peerlu and as such they constitute wakf property belonging to the institution of Peerlu (Ashurkhanna). It is further alleged that previously one Aggi Dastagiri Sab was the Mutwalli and manager of the said religious institution. The said Dastagiri Sab and his shareholders alienated items 1 and 2 viz. S. Nos. 328/1 and 328/3 of Tappetla village to one Machireddi, Karnam of Tappetla, the 1st defendant, under a sale deed dated 1-2-43. The said Manager and his co-sharers also sold item 3, i.e S. No. 453 of Tappetla village to the 2nd defendant under a sale deed dated 16.10.46 It was alleged that the manager and his shareholders had no authority whatsoever to effect the sales in favour of the defendants. They are therefore illegal and void. The Wakf Board after a proper enquiry declared the suit properties to be wakf properties under Section 5 of the Wakf Boards Act on 26-3-64. As the defendants did not hand over possession to the Wakf Board, the suit out of which the 2nd appeal arises was instituted on 14-8-1967.

3. The defendants contended that the suit was time barred and that they have perfected their title by adverse possession. They also contended that the sales were effected to carry out the repairs of the Peerlu.

4. The trial court, after a proper enquiry held that the suit properties are wakf properties. It however found that the suit was barred by limitation and that the defendants have perfected their title by adverse possession. The plaintiff's suif therefore for recovery of possession was held to be not maintainable.

5. The Wakf Board carried the matter in appeal to the District Judge. The District Judge allowed the appeal and held that the properties are wakf properties. He found that the suit was within time because Art. 96 of the Indian Limitation Act applies to the present suit. The Learned District Judge did not deal with the question of perfection of title of the defendants by adverse possession.

6. In this appeal, the principal contention of the learned Advocate for the appellant is that the suit is barred by time because in his submission it is Art. 144 of the Limitation Act that applies to the suit and not Art. 96.

7. In so far as the argument under Section 3 of the Extension of Limitation Act 29 of 1959 is concerned, it was a common ground that the section would not apply because even according to that section the dispossession or discontinuation of possession must have occurred after 14.8.47 and before 7th May, 1954. It is only when dispossession or discontinuation of possession occurs between that period that the suit according to that provision can be filed at any time after 14.8.1947 but before 7-5-54. Since in this case both the transfers were made earlier to 14-8-47, the section would have no application whatsoever.

8. I have therefore to consider whether Art. 96 applies to the present case as is held by the learned District Judge. Two contentions were advanced in order to show that the said Article is not applicable. It was firstly contended that the Mutwalli cannot be said to be a manager within the meaning of Article 96. I do not think the argument has any force. Art. 96 reads as under:

Description of suit Period of limitation Time from which period begins to run By the manager of a Hindu Muslim or Buddhist religious or chartable endowment to recover possession of movable or immovable property comprised in the endowment which has been transferred by a previous manager for a valuable consideration. TWELVE YEARS. The date of death, resignation or removal of the transferor or the date of appointment of the plaintiff as manager of the endowment, whichever is later.

9. Even a casual reading of this article would reveal that the transfer must be by a manager of a religious institution and the suit for recovery of possession must have been instituted by the manager of the religious institution. Thus both the questions, which are raised before me, that is, that the mutwalli who transferred the property is not a manager and the wakf which instituted the suit also is not the manager will have to be considered together.

10. Article 96 undoubtedly contemplates a suit by the manager of the endowment. It is, however, plain that the manager postulated by this Article is not necessarily a de facto manager. It will also include a de jure manager. Thus a suit for recovery of possession may be filed by a person who in law constitutes a manager or even by a person who is an actual possession of the religious institution and who sues for the recovery of the property for the benefit of the institution and not for his personal benefit. Thus even a suit by a committee of management appointed by the Court or the Endowments Department on the removal or suspension of a previous manager can obviously be considered as a suit by a manager within the meaning of the said article.

11. Likewise as long as the Mutwalli and his co-sharers acknowledge that they are the mutwallis of the religious institution. I fail to see how they cannot be characterised as managers of the religious institutions. It may perhaps have been a different thing if the mutwalli had repudiated the Mutwalliship but no such case is pleaded in this case. I have therefore no hesitation in holding that the Mutwalli and his co-sharers who transferred the property to the defendants are managers within the meaning of Article 96 of the Limitation Act.

12. In so far as the capacity of the Board to institute the present suit as manager is concerned, section 15 of the Wakfs Act makes it abundantly plain that subject to any rules that may be made under the said Act, the general superintendence of all wakfs in a State shall vest in the Board established for the State; and it shall be the duty of the Board so to exercise its powers under the said Act as to ensure that the wakfs under its superintendence are properly maintained, controlled and administered and the income thereof is duly applied to the objects and for the purposes for which such wakfs were created or intended. Thus, a very wide power is given to the Board only to supervise the functioning of these wakfs but to see that they are properly maintained, controlled and administered. The Board is specifically charged with the duty to see that the income of the wakfs is duly applied to the objects and for the purposes for which the wakfs were created or intended. Apart from this general power which section 15(1) confers on the Board, clauses (h) and (i) of sub-section (2) of that section specifically empowers the Board to fake measures for the recovery of lost properties of any Wakf and to institute and defend suits and proceedings in a court of law relating to wakfs.

13. What must necessarily follow therefore is that the Wakfs Board having supervisory powers and having special duties to perform is not only entitled to file the suit for recovery of the property lost to the wakf but also can manage and administer the property or see that the properties are properly managed and administered and its income applied to the objects and for the purposes for which the wakfs were created or intended. Keeping in view these statutory functions and the powers of supervision of the Waks Board over the Wakfs, I do not experience any difficulty in holding that the Wakf Board is a manager within the meaning of Article 96 of the Limitation Act.

14. A glance at the antecedents of Article 95 would immediately reveal that even under the law as it stood prior to the enactment in 1929 of Article 1 of the Limitation Act of 1908, corresponding to the present Art. 96, a suit by the manager of a Muslim religious or charitable endowment for recovery of the possession of immovable property alienated by a previous manager was governed by a twelve years' period of limitation running from the date of the termination of the tenure of office of the alienating manager. Article 134-B gave legislative effect to this view which is followed by Article 96.

15. It is true that the Mutwalli who transferred the property has not been removed nor has he resigned. He is still alive. That does not however make Article 96 inapplicable in my judgment. It is now fairly settled that it is nit necessary for the applicability of Article 96 that the transferor should have been the immediate predecessor of the plaintiff in the office of manager. Likewise, although Article 96 says that the period of 12 years would commence from the date of death, resignation or removal of the transferor, but it also says that the limitation can be commenced also from the date of appointment of the plaintiff as manager of the endowment, whichever is later. It is not therefore in all cases necessary that the previous Mutwalli must have been either removed or he, must have resigned or he must have died. Even from the date of the appointment of the plaintiff as manager of the endowment, the limitation would commerce. If one remembers that the statutory position of the Wakfs Board is of a supervisory character, then it will not be hard to realise that a Mutwalli who transfers the property may continue in the office but such a transfer can be invalidated or possession transferred in pursuance of such transfer can be recovered by the Wakf Board without waiting for the resignation, death or removal of the Mutwalli. When the period necessarily commences after the death, resignation or removal of the old Mutwalli who transferred the property during his lifetime under the first part, the suit can be brought by the Wakf Board within the specified time to invalidate the sale and recover possession under the second part of the Article. When supervisory powers are exercised by the Board under Section 15 of the Wakfs Act, it only means that to the extent of the transfer illegally effected by the Mutwalli, the wakf Board wants the Court to declare the transfer as illegal and void. I, therefore agree with the view taken by the first appellate court that it is Article 96 which would apply and if that is applicable, it was not doubted that since the wakf board was constituted for the first time on 4-3-61 the suit instituted on 4-3-67 would be still within time. The argument relating to adverse possession and perfection of title by the defendants holds no water. It is now plainly settled that the possession of the alienee becomes adverse to the religious institution only from the date of the termination of the tenure of office of the alienating manager. This view was based on the ground that the alienation of property belonging to a Hindu Muslim etc. endowment by the manager was good (where it was not set aside in proper proceedings taken for the purpose). So long as the alienating manager held office, and the possession of the alienee become unlawful only on the cessation of the transferring manager's term of office. This view has been expressed in several Privy Council decisions and has been adopted in more than one case even by the Madras High Court. What is therefore plain is that during the lifetime of the Mutwalli who transferred the property, the transferee's adverse possession cannot be said to has even commenced. There is therefore no question of perfection of their title by computing the statutory period of adverse possession. It is because of this obvious legal position perhaps he arguments were advanced before the lower appellate court, and I do not feel any difficulty in rejecting same.

16. For the reason stated above, the second appeal fails and is dismissed with costs. No leave.