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Smart Summary

Factual and Procedural Background

The suit arose from a 1866 demise (kanom) under which certain lands were demised to the first defendant by the plaintiff's father. At the time of the suit the lands were in the possession of the second defendant. The first defendant assigned his rights in 1894 to Krishnan Nair, who in 1901 attorned to Kodalur Nambudri, asserting the lands belonged to the Kizhuthir kovil Devasvam (temple). The second defendant later obtained an assignment of Krishnan Nair's rights and denied the plaintiff's right to redeem the mortgage, asserted the Devasvam's title to the lands, and denied the genuineness of the demise (kanom) sued on; the lower courts, however, held the kanom genuine.

Procedurally: The District Munsif (trial court) granted a decree for possession to the plaintiff, finding the lands attached to and belonging to the Kizhuthir kovil Devasvam and holding that the second defendant (an assignee of the original kanoindar) was estopped from denying the plaintiff's title. On appeal the Subordinate Judge reversed, holding that the plaintiff's claim to the trusteeship of the temple had been negatived earlier and that the plaintiff was not the present trustee; consequently, since the demise was by the plaintiff's father as trustee of the temple, the plaintiff could not recover the land and the appeal court dismissed the suit. The present opinion is the outcome of the Second Appeal from that decision.

Legal Issues Presented

  1. Whether the lands in question belonged to the Kizhuthir kovil Devasvam (temple) or to the plaintiff as private property of his Illom.
  2. Whether the plaintiff, not being the trustee of the temple at the date of suit, could recover possession of lands demised by his father as trustee of the temple.
  3. Whether the plaintiff (or his father) acquired title to the lands by adverse possession or prescription, thereby extinguishing the temple's rights under the Limitation statute.
  4. Whether a transfer of the temple (allegedly in 1848 to Kodalur Nambudri) converted the temple property into private property, thereby ending the trust and vesting the land as private property in the plaintiff's family.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The lands were effectively treated in the kanom as the property of the demisor (the plaintiff's father), so the plaintiff's father must be treated as having demised the property as his own (i.e., the plaintiff should be able to claim as private owner).
  • The right of the temple and of Kodalur Nambudri as trustee to the property is extinguished by limitation and the plaintiff (and his ancestors) have acquired rights by adverse possession, having remained in possession of the lands.
  • Assuming the property was originally temple property, it ceased to be such in 1848 (on the alleged transfer) and has since remained private property of the plaintiff's family.

Second Defendant's (and Respondents') Arguments as Reflected in the Opinion

  • The second defendant denied the plaintiff's right to redeem the mortgage, asserted the right of the Devasvam to the lands, and defended his holding as derived under the Devasvam.
  • The second defendant denied the genuineness of the demise sued on (kanom), although both lower courts found the kanom to be genuine.
  • In written statement the second defendant alleged historical facts about assignment and transfer, including that the temple had been assigned in 1814 and sold to Kodalur Nambudri in 1848 (used to argue that the temple became private or its management changed), and disputed any admission that the Devasvam was private property of the plaintiff's mana.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Madhava v. Narayana (1886) I.L.R. 9 Mad. 244 Possession in assertion of a kanom right yields only the kanomdar's interest by limitation; that is, the quality of possession determines the limited interest acquired by prescription. The court used it to illustrate that possession taken as trustee or under a limited title does not mature into full beneficial ownership by prescription; applied to hold the plaintiff's possession (as trustee) could not confer full title by limitation.
Thalcore Fatesingji v. Bamanji A. Dalal (1903) I.L.R. 27 Bom. 515 One who asserts the right of a permanent lessee acquires that right by limitation — possession under a limited right yields that limited right only. Used to reinforce the proposition that possession under a limited title (e.g., lessee, kanomdar) produces only that limited interest; supports denying full title to one holding as trustee.
Secretary of State for India v. Krishnamoni Gupta (1902) I.L.R. 29 Calc. 518 (P.C.) If a person is in possession as the tenant of another of land which really belongs to himself, he may lose his right by continuing to hold as tenant for the statutory period because his possession is that of the landlord (i.e., the character of possession matters). Cited to show that where possession is effectively held on behalf of another (the beneficiaries/trust), the possessor cannot acquire title against those beneficiaries by limitation.
Kernaghan v. M'Nally, 12 Ir. Ch. Rep. 89 When wrongful possession is held by a person as cestui que trust under a will, his possession is regarded as the possession of the trustee and inures to the benefit of those entitled under the trust. Applied to support the proposition that a person purporting to act as trustee cannot claim title for himself by lapse of time where his possession is effectively that of the trust.
Lyell v. Kennedy (1889) 14 A.C. 437 Affirmed the principle that a person who assumes to be trustee or agent and holds possession in that capacity cannot, for his own benefit, claim the land by limitation; an agent or trustee cannot treat his possession as adverse for his personal benefit. Relied upon as authoritative support (House of Lords) that a person acting as trustee/agent cannot acquire the estate for himself by running the period of limitation while holding in that character.
Rackham v. Siddall (1850) 1 Mac. And G. 607; Life Association of Scotland v. Siddal (1861) 3 D.F. and J. 58 Earlier authorities establishing the doctrine that a person who assumes to be a trustee cannot, for his own benefit, rely on limitation to acquire the trust property. Referred to as part of the chain of authorities supporting the rule against a trustee (or person acting as such) taking advantage of the Statute of Limitations for personal benefit.
Soar v. Ashwell (1993) Q.B. 390 The Court of Appeal acted on the same rule that a man who assumes without excuse to be a trustee ought not to be in a better position than if he were what he pretends (i.e., cannot gain beneficial title by holding as trustee). Used to show consistent application of the trustee-possession rule in later authorities (Court of Appeal) supporting the denial of title by limitation to one holding as trustee.
Shaw v. Keighron I.R. 3 Eq. 574 On receipt of rent: mere receipt by a person not entitled does not always bar the rightful owner; the receipt must have been under some claim of title and wrongful one to bar the owner. Quoted to explain that the appellant's assertion that he took the rents for himself does not convert his trustee-possession into adverse possession favorable to him; at most it creates liability to account.
Gnanasambanda Pandara Sannadhi v. Velu Pandaram (1900) I.L.R. 23 Mad. 271 Authority that the right to property follows the right to trusteeship (i.e., title to the lands goes with the trusteeship). Cited to support the statement that the right to the property must go with the right to the trusteeship; since plaintiff lacked trusteeship, he could not claim the property.
Ambalam Pakkiya Udayan v. Bartle (1913) I.L.R. 36 Mad. 418 Decision of this Court cited in support of the proposition that rights to trust property are bound up with trusteeship and cannot be severed by mere possession. Relied upon alongside other authorities to confirm the appellate conclusion that the plaintiff did not acquire title separate from the trusteeship.

Court's Reasoning and Analysis

The court proceeded by first identifying the factual findings of the lower courts: both found the lands belonged to the Kizhuthir kovil Devasvam and that the kanom deed described the lands as belonging to the temple with rent payable at the Devasvam office. The District Munsif's judgment was observed to be confused: although he found the lands belong to the temple, he also suggested they might have been kept apart as the plaintiff's family property. The Subordinate Judge, however, clearly held that the plaintiff's claim to trusteeship had been negatived and that the plaintiff was not the present trustee; consequently, because the demise was made by the plaintiff's father as trustee of the temple, the plaintiff could not claim the lands.

The court addressed the appellant's submissions in turn:

  • On the contention that the kanom treated the temple as property of the demisor (so the demisor should be treated as demising as owner), the court rejected this: even if the temple were a private devasvam (beneficiaries limited to a family), it remained trust property; the kanom's description of the lands as temple property and the rent stipulation pointed to a trust-oriented demise by the plaintiff's father as trustee.
  • On the contention that the trust ceased in 1848 when the temple passed to Kodalur Nambudri and thus the lands became private, the court examined the record: the defendants denied any admission that the Devasvam was private property; even assuming private character, transfer to Kodalur Nambudri did not show that the trust ceased to exist or that the lands were severed from the temple by any valid act of the trustee. The presumption is that the temple continued to own the lands and they vested in its trustee (even if beneficiaries changed).
  • On the adverse possession/limitation contention, the court applied established principles: the animus possidendi (the character or quality of possession) is decisive — where possession is held as trustee or under a limited title (kanom, lease, etc.), prescription confers only the interest corresponding to that character, not full beneficial ownership. The court analysed authorities that reaffirm the rule that a person who holds as trustee (or assumes that character) cannot claim the beneficial estate by limitation against the beneficiaries. The court concluded that because the plaintiff's father purported to deal with the lands as trustee, neither he nor the plaintiff could acquire title by adverse possession against the temple; misappropriation of rents does not convert trustee possession into adverse possession and only creates a liability to account.

Based on these analyses and the supporting authorities, the court found no basis to overturn the Subordinate Judge's conclusion that the plaintiff lacked the trusteeship and therefore could not recover the lands which were temple property.

Holding and Implications

Holding: Second Appeal dismissed — the Second Appeal is dismissed with costs.

Implications

Direct consequences:

  • The plaintiff is not entitled to recover possession of the lands in suit because the lands were demised by his father as trustee of the Kizhuthir kovil Devasvam and the plaintiff was not the trustee at the date of suit.
  • The plaintiff did not acquire title to the property by adverse possession; any receipt of rents while acting as trustee makes him liable to account but does not convert his possession into a title adverse to the temple.

The opinion applies and relies on established authority concerning the effect of trustee-character possession on the operation of the Statute of Limitations; it does not purport to establish a new legal principle or novel precedent beyond reaffirming these settled propositions.

    Pramathan Thuppan Nambudripad v. Choorakkapatti Mindekottil Ittichiri Amma

    1. The suit out of which this Second Appeal arose was instituted by Pathaikara Pramathan Thuppan Nambudripad, the Manager of a Nambudri Illom, to recover possession of certain lands demised on kanom in 1866 to the first defendant by the plaintiff's father. At the time of the suit the lands were in the possession of the second defendant. The original demisee, the first defendant, assigned his rights to one Krishnan Nair in 1894. He subsequently in 1901 attorned to one Kodalur Nambudri who claimed the lands as the property of a temple Kizhuthir kovil Devasvam. The second defendant subsequently, obtained an assignment of the rights of Krishnan Nair. The second def en d ant denied the plaintiff's right to redeem the mortgage and set up the right of the Devasvam to the lands and his holding under the Devasvam. He denied the genuineness of the demise sued on; but both the lower Courts have held it to be genuine. In view of the findings of the Appellate Court it is unnecessary to refer to certain other contentions raised by the second defendant. In the kanom deed, Exhibit VII, the lands in question are described as belonging to the temple and the counterpart-Kychit, Exhibit A, provides that the annual rent should be paid at the Devasvam Office.

    2. Both the lower Courts have found that the lands belong to the Kizhuthir kovil Devasvam.) The District Munsif gave the plaintiff a decree for possession. He said, "I find that the plaint properties are attached to the $azhuthir kovil Devasvam properties and belong to the plaintiff/and that they are held under the plaint Kychit, Exhibit A. He was of opinion that the second defendant who was an assignee from the assignee of the original kanoindar was estopped from denying the plaintiff's title to recover the properties and was bound to surrender them. One of the two defendant's contentions was that it had been finally decided between the plaintiff and Kodalur Nambudri that the latter was the trustee of the temple and not the former; but the District Mnnsjif decided this issue in the negative in plaintiff's favour.

    3. On appeal, the Subordinate Judge held that the plaintiff's claim to the trusteeship of the temple was negatived long before the suit and that he was not the present trustee of the temple. He also held that as the lands were demised by the plaintiff's father as the property of the temple and as the plaintiff was not the present trustee thereof, he could not claim to recover the land and dismissed the suit. The District Munsif's judgment is rather confused. While holding that the lands belong to the temple, he also observes that they might have been kept apart as property belonging to the plaintiff's family when the temple itself was made over to the Kodalur Nambudri in 1848 by a member of the plaintiff's family. It is not quite clear whether he intended to decree the lands to the plaintiff as the private property of his Illom or as the property of the temple. His judgment must be regarded, as based on his finding that the second defendant was estopped from denying the title of the plaintiff from whose father the kanora was originally obtained by the first defendant. It is quite clear that if the lands still belong to the temple and if the plaintiff is no longer its trustee, the principle of estoppel would not apply inasmuch as the demise was made by the plaintiff's father as trustee of the temple. The temple being the virtual demisor, the second defendant could be estopped from denying only the title of the temple, and would not be estopped from denying the plaintiff's right on the ground that he was not the trustee at the date of suit.

    4. Mr. T.R. Ramachandra Ayyar, the learned vakil for the appellant, contends that the temple itself is treated in the demise as the property of the demisor and that therefore the plaintiff's father must be treated as having demised the property as his own. This proposition clearly cannot be upheld. Even assuming that there is foundation for the appellant's argument, that the temple was a private one in which the public had no rights, it is quite clear that it was still trust property though the beneficiaries' might be only members of the Pathaikara family. The lands demised would also be trust property attached to the private temple. It is argued the stipulation for payment of rent at the temple office merely described the place where the rent was to be delivered and did not indicate the ownership of the temple over the lands; but taken along with the clear description of the lands in the kanom deed as belonging to the temple, we have no hesitation in confirming the finding of the Subordinate Judge that the lands in question were demised by plaintiff's father as the trustee of the temple. No attempt has been made at the hearing to dispute the correctness of the finding that the plaintiff at the date of the suit had no right whatever over the temple. It would therefore follow that the decree dismissing the suit must be upheld.

    5. Mr. Ramachandra. Ayyar urges two contentions in support of his argument that the plaintiff is entitled to recover the property, First, that the right of the temple and of the Kodalur Nambudri as trustee thereof to the property is extinguished by limitation and that the plaintiff has acquired a right thereto by adverse possession: secondly, that assuming the property to have been originally temple property, it ceased to be such in 1848 and that it has since remained as private property.

    6. It will be convenient to deal with the latter contention first. The second defendant in his written statement stated that, in 1814 at a division between the then karnavan of Pathaikaramana and an adopted son of his, subsequent to the birth of a natural born son, the temple was assigned to the adopted, son and that this person sold, the temple with its properties, to the Kodakir Nambudri in 1848. The demise in question in this suit, it will be remembered, was in 1866 by the Pathaikara Nambudri subsequent to the transfer of the devasvam to the Kodalur Nambudri. The argument is that the temple being a private one in which the members of the Pathaikaramana alone had any beneficial rights, the trust ceased to exist when it passed away to the Kodalur Nambudri in 1848. To begin with, this argument is based on the assumption that the temple Tvas a private devasvam and not a public one. The District Munsjff no doubt observes in paragraph 11 of his judgment, "It is admitted that the Devasvam was a private property of the.plaintiffs mana." But the Subordinate Judge says, "There is no admission of the defendants on record that the Devasvam was a private property of plaintiff's mana and set apart to an adopted son after the birth of a 'natural' son as stated by the District Munsif in paragraph 11 of his judgment." Evidently the defendants denied in the Court of Appeal that they made any admission regarding the private character of the temple. We cannot, in the circumstances, proceed on the assumption that the temple was a private institution. But assuming that it was such, we cannot assume that the trust ceased to exist when the Kodaiur Nambudri obtained a transfer of the temple. Admittedly, there were disputes about the temple the Pafchaikaramana and the Kodalurmana regarding the rigid; of management of the temple; and. the question was finally decided in favour of the Kodalurmana. This is not reconcilable with the cessation of the temple as a religious institution with properties attached to it. Even in this suit the plain till' contended before the Muusif that he was the manager of the temple. After the transfer to the Kodalurmana the presumption would be, even if the temple was a private one, that the members of the Kodalurmana at least would all be entitled as beneficiaries, to the temple and its properties. The temple would still continue to own the lands attached to it though the beneficiaries might have changed by the transfer to the Kodalurmana. It is not shown that the plaint lands ceased to belong to the temple by their being severed from it by any valid act on the part of the trustee. The demised property must therefore still be regarded as belonging to the temple and vesting in its trustee unless the right of the temple has been extinguished by limitation. It is therefore necessary to deal with the contention that the plaintiff has acquired a right to the property by adverse possession. Mr. Ramachandra Ayyar argues that as the plaintiff and his father have always continued to remain in possession of the lands the temple has lost its right under the statute of limitation. But, the demise in question was made by the plaintiff's father as the representative and trustee of: the temple. In 1866 when the demise was made the demisor was evidently claiming to be the trustee and the litigation which negatived his right ended only in 1894. We must hold that the demisor purported to deal with the lauds as trustee of the temple. As a matter of fact, he has been held to be not trustee now. He never succeeded in acquiring the right of trusteeship by adverse possession. 13ut when a person purports to hold the property as a trustee, he cannot by such possession acquire a right to the property by prescription for himself against the beneficiaries. In determining what right adverse possession would confer on the holder the animus possidendi is the decisive factor. The character in which possession is held must determine the right which the possession would confer. Thus a person who has been in possession for the statutory period in the assertion of a kanom right would acquire only a kanomdar's interest by limitation: Madhava v. Narayana (1886) I.L.R. 9 Mad. 244. Similarly one who assert to the right of a permanent lessee would acquire that right; see Thalcore Fatesingji v. Bamanji A. Dalal (1903) I.L.R. 27 Bom. 515. "When a person takes wrongful possession of land, and keeps it for the prescribed period of limitation, claiming to be himself entitled in fee, or, not setting up any title at all, he gains the estate for his own benefit; but if he enters, claiming a limited interest under some instrument, it does not follow that he can, by possession till the rightful owner is barred, claim the whole estate in perpetuity. Thus, if a man obtains possession of land claiming under a will, he cannot afterwards set up another title to the land against the will, though it did not operate to pass the land in question; and if he remain in possession till twelve years have elapsed and the title of the testator's heir "be extinguished, he cannot claim by possession an interest in the property different from that which he would have taken if the property had passed by the will." Bosanquet and Merchant on "Limitation," page 498. "The nature of an inchoate possessory title may be stated as follows: If a stranger upon entering claims an existing particular estate in the land, as a life estate, he is seised of that estate.... If he only claims an existing term, he is possessed of that term. , and his possessory title will devolve as personality;" Lightwood's Time limit on Actions, page 125. The same principle is applicable where a person is in possession as a trustee and not for his own benefit, because his possession in such a case is really that of the beneficiaries under the trust. In Secretary of State for India v. Krishnamoni Gupta (1902) I.L.R. 29 Calc. 518 (P.C.), the Judicial Committee of the Privy Council hold that if a person is in possession as the tenant of another of land which really belongs to himself he would lose his right by continuing to hold as tenant for the statutory period because, in reality, his possession is that of the landlord. In Kernaghan v. M'Nally 12 Ir. Ch. Rep. 89, it was held, in a case where wrongful possession was held by a person as cestui que trust under a will which did not divide the property, that his possession would be regarded as the possession of the trustee and would inure to the benefit of all who would take if the property had really been demised to him. "A person purporting to act as trustee cannot be allowed to say for his own benefit that he had no right to act as trustee and is estopped from taking advantage of the lapse of time." In Lyell v. Kennedy (1889) 14 A.C. 437 at p. 459, this principle was affirmed by the House of Lords. There a person was managing certain land as the agent of a life tenant. After the death of the life owner he continued to receive the rents and pay them into the Bank as he was doing before, not informing the tenants in actual occupation by stating to several persons that he was acting as agent and receiver for the true owner whoever he might be; after the expiration of twelve years from the death of the life tenant he claimed the property on his own account. The assignees of the heir brought an action against him to recover possession of the land, and for an account of the rent and, profits. The House of Lords held that the agent could not claim any right by virtue of his possession as he purported to hold on behalf of the true heir whoever he might be. Lord Selborne regarded the principle as well established. After referring to the earlier cases--Rackham v. Siddall (1850) 1 Mac. And G. 607 at p. 621 and Life Association of Scotland v. Siddal (1861) 3 D.F. and J. 58 at p. 69--His Lordship observed, "The principle of those decisions, as stated by Turner, L.J., in the latter case, was, that a person who had assumed to be a trustee 'could not be heard to say, for his own benefit, that he had no right to act as a trustee' Mr. Lewin, in his learned and accurate treatise upon the Law of Trusts, thus puts it (seventh edition, page 191: "If a person, by mistake or otherwise, assume the character of trustee when it really does not belong to him, and so becomes a trust de son tort, he may be called to account by the cestui que trust for the monies he received under colour of the trust." In Soar v. Ashwell (1993) Q.B. 390 at pp. 396 and 405, the same rule was acted upon by the Court of Appeal. Lord Bowen says, referring to the case of Life Association of Scotland v. Siddal (1861) 3 D.F. and J. 58 at p. 69: "This extension of the doctrine is based on the obvious view that a man who assumes without excuse to be a trustee ought not to be in a better position than if he were what he pretends." Kay, L.J., said, "The result seems to be that there are certain cases of what are, strictly speaking, constructive trusts, in which the Statute of Limitations cannot be set up as a defence. Amongst these are the cases where a stranger to the trust has assumed to act and has acted as a trustee."

    7. It is clear from the abovementioned cases that the law will not permit the plaintiff: in this case to say that he held in any-character other than that of trustee of the temple. It is not alleged that at any time subsequent to the demise he repudiated the character of trustee and claimed to hold the land for his own benefit. Mr. Ramachandra Ayyar urges that he did not apply the rents of the property for the benefit of the temple but took them himself; but this cannot better his position. It would only have the effect of making him liable to account for the rents which he, having collected in the character of trustee, misappropriated for his own benefit. It was observed in Shaw v. Keighron I.R. 3 Eq. 574,

    "I think it is necessary to go beyond the mere circumstance that some one not entitled to the rent has received and kept it. The section requires not only that the rent should have been received by a person other than the person rightfully entitled, but that it should have been received under some claim of title and that a wrongful one. For example, if rent were received by a person falsely pretending to be agent to the rightful owner and who never accounted for it this would not bar the, rightful owner."

    8. We must therefore hold that the plaintiff did not acquire any title to the property by adverse possession as against the temple. The right to the property must go with the right to the trusteeship. See Gnanasambanda Pandara Sannadhi v. Velu Pandaram (1900) I.L.R. 23 Mad. 271 at p. 279 (P.C.); also the judgment of this Court in Ambalam Pakkiya Udayan v. Bartle (1913) I.L.R. 36 Mad. 418.

    9. We dismiss the Second Appeal with costs.

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    Pramathan Thuppan Nambudripad v. Choorakkapatti Mindekottil Ittichiri Amma
    (Mar 1, 1912)