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Chettikulam Prasanna Venkatachala Reddiar v. The Collector Of Trichinopoly Srirangammal Died

Madras High Court
Mar 13, 1914
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Structured Summary of the Provided Opinion

Factual and Procedural Background

The Collector of Trichinopoly instituted a suit under Sections 92 and 93 of the Civil Procedure Code. The first defendant (since deceased) was alleged to have been the trustee and manager of certain charities referred to in the plaint. The second defendant was alleged to be a transferee from the first defendant of a portion of the lands appertaining to the charitable trust.

The plaint sought, among other reliefs, removal of the first defendant from trusteeship, accounts, appointment of a new trustee and vesting of trust property in that trustee, and a declaration (prayer (b) / prayer (6)) that the sale to the second defendant of lands belonging to the charity was invalid. The lower court granted all reliefs sought against both defendants.

Both defendants appealed the decree. The first defendant died and, because her legal representatives were not brought on the record, her appeal abated and was dismissed. The present appeal is by the second defendant. The Collector (plaintiff) argued that the second defendant's appeal must also abate because the first defendant, originally a respondent, is dead and her legal representatives have not been brought on record as required by Order 22.

Legal Issues Presented

  1. Whether the second defendant's appeal abates when one of the respondents to the appeal (the first defendant) is dead and her legal representatives have not been brought on the record under Order 22.
  2. Whether the claim against the second defendant (declaration that the sale of trust properties to him is invalid) is barred by limitation, in particular under Article 120 of the Limitation Act.
  3. Whether Section 10 of the Limitation Act or other principles relating to transferees (including the effect of being an assign for valuable consideration and the notion of good faith) prevent the right to follow trust property in the hands of the second defendant from being time-barred.
  4. Whether, for limitation purposes, time begins to run from the date of the alleged wrongful sale (26 January 1899) or from the date when the Collector was informed of facts entitling him to act under Section 92 of the Civil Procedure Code.

Arguments of the Parties

Plaintiff's (Collector's) Arguments

  • The second defendant's appeal should abate because the first defendant, originally a respondent to the appeal, is dead and her legal representatives were not brought on the record as required by Order 22.
  • It was also contended (in relation to limitation) that Section 10 of the Limitation Act prevents the right to follow trust property in the hands of the second defendant from being barred by lapse of time.

Second Defendant's (Appellant's) Arguments

  • The second defendant contended that his appeal does not abate because his right to the relief he seeks is a right that survives to him alone; specifically, he sought (a) that his name be struck from the record as he was not a necessary party to the suit, and (b) that, alternatively, any cause of action against him was barred by limitation—on either ground the suit should be dismissed as against him.
  • It was argued that the second defendant could succeed and have the decree reversed without bringing the first defendant's legal representatives on record.
  • An additional argument (referred to in the opinion) suggested that the lower court's decree might have entitled the second defendant to sue the first defendant for damages for breach of covenant for title, implying an interest of the first defendant in the appeal; this argument was noted and rejected by the court as not needing detailed refutation.

Government Pleader's Contentions (as recorded)

  • A test was suggested by the Government Pleader for deciding whether the right survives: viz., whether the appellant can succeed and the decree be reversed without bringing the legal representative of the deceased party on the record. The court applied this test.
  • In relation to limitation, the Government Pleader argued that time should begin to run only from when the Collector was informed of the facts entitling him to act under Section 92, because a public officer has no duty to go round and examine public trusts and suits he can institute should not be barred though he may have had no knowledge of his right to sue.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gopal v. Ramachandra (1902) I.L.R. 26 B. 597 Interpretation of 'the right to sue' when Order 22 sections are applied to appeals — construed as "the right to prosecute by law, to obtain relief by means of legal procedure." Used to support the conclusion that the mere death of a respondent and failure to bring representatives on record does not necessarily make an appeal abate when the right survives to the appellant.
Paramen Chetty v. Sundaraja Naick (1902) I.L.R. 26 M. 499 Followed the proposition in Gopal v. Ramachandra regarding interpretation of 'right to sue' in appeals. Noted as a following authority for the interpretation adopted on non-abatement.
Srinivasa Chari v. Gnanaprakasa Mudaliar (1906) I.L.R. 30 M. 67 Illustrates that adjudication sought by an appellant may not affect a deceased party. Cited to show that the issue the second defendant wished to raise would not affect the deceased first defendant, supporting non-abatement.
Durga Charan Sircar v. Jotindm Mohan Tagore (1899) I.L.R. 27 C. 493 Test for ascertaining whether a defendant is a necessary party: (1) whether there is a right to some relief against him in respect of the matter involved; (2) whether his presence is necessary for the court to adjudicate and settle all questions involved. The test was applied (with 'appeal' read for 'suit') to conclude that the appellant could obtain all the reliefs sought without the presence of the first defendant or her representatives.
Sabbayya v. Krishna (1890) I.L.R. 14 M. 186 Section 539 (corresponding to Section 92) held to permit removal of trustees. Referenced among authorities showing that courts have held Section 539/Section 92 permissible for removing trustees; used in survey of differing decisions.
Husein Begam v. The Collector of Moradabad (1897) I.L.R. 20 A. 46 Section 539 held to permit removal of trustees. Included in discussion of holdings supportive of court competence under the old provision corresponding to Section 92.
Girdhari Lai v. Ram Lal (1899) I.L.R. 21 A. 200 Section 539 held to permit removal of trustees. Included among decisions treating the section as within competence for trustee removal.
Sajedur Raja Chowdhari v. Gour Mohum Das Baishnay (1897) I.L.R. 24 C. 418 and (1892) I.L.R. 15 M. 24 Held Section 539 applicable to determine properties affected by trust and to make alienees parties for recovery of properties improperly alienated. Cited as authority for the view that alienees could sometimes be impleaded to determine trust-affected properties and recover improperly alienated property.
Nara simha v. Ayyan (1888) I.L.R. 12 M. 157 Section 539 held without competence for certain reliefs (contrasting with other decisions). Referenced as an authority holding the section not applicable, illustrating divergence of opinion.
Rangaswami Naickan v. Varadappa Naickan (1891) I.L.R. 17 M. 462 Case in the broader debate on the scope of Section 539/Section 92. Included in the list of authorities illustrating differing positions on the section's scope.
Budree Das Meekin v. Choone Lal Johurry (1906) I.L.R. 33 C. 789 Part of the authorities addressing the applicability of the section to strangers to the trust and related questions; later legislative developments noted. Cited in the survey of divergent decisions; also mentioned in connection with other authorities addressing similar issues.
Budh Singh Dadhuria v. Niradharan Roy (1905) 2 Cal. L.J. 431 (and Budh Singh Dhuduria v. Niradbaran Roy (1909) I.L.R. 33 M. 31) Part of debate; noted that one decision was settled by legislative insertion of clause (a) in section 92(1). Referenced as part of the background on how some conflicting decisions have been addressed by legislative change.
Ghazaffar Husain Khan v. Yawar Husain (1905) I.L.R. 28 A. 112 Held that alienees could be impleaded to determine what properties are affected by the trust. Cited in the discussion on whether alienees/trespassers can be joined as parties under Section 92.
Augustine v. Medlycott (1882) I.L.R. 16 M. 31; Strinivasa Ayyangar v. Strinivasa Swami (1899) I.L.R. 21 B. 170; Kazi Hussain v. Sagun Balakrishna (1880) 23 M.L.J. 347; Arunachella Chetti v. Muthu Chettiar (1906) I.L.R. 33 C. 789 Holdings used to support the proposition that Section 539/Section 92 was not applicable to suits against strangers to the trust. Included in the list of authorities reaching the contrary conclusion to those permitting impleading of alienees, illustrating the conflict of decisions.
Ottappurakhal Thayath Soopi v. Cherichal Pallikhal Uppathumma (1906) I.L.R. 33 C. 789 Held that the right to sue for a declaration that an alienation is invalid accrues at the completion of the document and falls under Article 120 of the Limitation Act. Applied to conclude that Article 120 governs the present claim and that the right accrued on 26 January 1899 (the date of purchase), so that the plaint dated 7 October 1909 was time-barred.

Court's Reasoning and Analysis

The court proceeded in two main strands of analysis: (A) whether the appeal abated because of the first defendant's death and (B) whether the claim against the second defendant was barred by limitation.

A. Non-abatement of the Appeal

The court held that the appeal did not abate. It reasoned that the mere fact that one of the respondents to an appeal is dead and that legal representatives have not been brought on the record will not cause the appeal to abate if the right sought in the appeal survives to the appellant. The court relied upon Gopal v. Ramachandra to construe "the right to sue" in the context of appeals as meaning the right to prosecute by law to obtain relief by legal procedure; Paramen Chetty was cited as following that view.

The court applied a practical test (expressed by the Government Pleader and supported by Srinivasa Chari) — whether the appellant can succeed and have the decree reversed without bringing the deceased party's legal representatives on record. The court found that in the present appeal the relief sought by the second defendant (striking his name off the record as unnecessary and/or dismissal for limitation) was a right that the second defendant could claim in his sole right against the plaintiff; the death of the first defendant did not affect that right. Therefore, the appeal did not abate.

The court briefly considered and rejected the contention that the lower court's decree might give the second defendant a right to sue the first defendant for damages (which would make the first defendant interested in the appeal), describing the contention as not requiring detailed refutation.

B. Limitation — Merits

On the merits the court limited its consideration primarily to the question of limitation. The court assumed (without deciding) that the Collector could, under Sections 92 and 93 of the Civil Procedure Code, seek a declaration against a person who claims to be a transferee from a trustee. The court then evaluated whether the Collector's claim against the second defendant was time barred.

The Collector argued that Section 10 of the Limitation Act prevents the right to follow trust property in the second defendant's hands from being barred by any length of time. The court analyzed transferees in two categories based on the text:

  • If the transferee paid no consideration, he is not an assign for valuable consideration under Section 10 of the Limitation Act, and suits to follow trust property in such a transferee are not barred by lapse of time.
  • Where the transferee is an assign for valuable consideration: (a) if he acted in good faith without notice of the trust, he acquires immediate title under Section 64 of the Trusts Act; (b) if he did not act in good faith but paid valuable consideration, he acquires good title only after the lapse of the period necessary for extinguishing the beneficiary's right to follow the trust property under Section 28 of the Limitation Act.
The court observed that the second defendant had been found to be an assign for valuable consideration and that this finding was not attacked on appeal. The court rejected the Collector's contention that mere payment of consideration without a finding of good faith prevented the plea of limitation; the court held that being an assign for valuable consideration can make limitation available to the transferee.

The court accepted (as controlling) the application of Article 120 of the Limitation Act to a suit for a declaration that an alienation is invalid, citing Ottappurakhal Thayath Soopi v. Cherichal Pallikhal Uppathumma. Under that authority, the right to sue accrues at the completion of the document (the date of the sale), not when the plaintiff obtains knowledge of the alienation.

Given that the second defendant purchased on 26 January 1899 and the plaint was dated 7 October 1909, and Article 120 allows six years from accrual of the right, the court concluded that time began to run on 26 January 1899. The court also noted that the Collector was aware to some extent of misappropriation by June 1899 (Exhibit 1) and received a revenue inspector's report in February 1905, but, in any event, the suit was brought more than six years after accrual and therefore time-barred.

C. Disposition on Costs and Ancillary Directions

The court ordered that the appeal be allowed and the suit dismissed against the second defendant. Costs of both parties to the appeal in both courts were ordered to be payable out of the Trust funds, with the appellant to recover his whole costs first and the first respondent to recover costs only from the balance. It was recorded that some costs incurred in the lower court had been recovered by the Collector from the appellant; those amounts were to be refunded to the appellant within four months, under Section 82 of the Civil Procedure Code.

Holding and Implications

Core Ruling: The court held that the appeal by the second defendant does not abate and, on the merits, allowed the appeal and dismissed the suit against the second defendant as time-barred.

Implications / Consequences:

  • The direct effect is that the suit is dismissed as against the second defendant for being barred by limitation under Article 120 of the Limitation Act (accrual dated to 26 January 1899), and the second defendant's appeal is allowed.
  • Costs: Costs of both parties in both courts are to be paid out of the Trust funds. The appellant (second defendant) will recover his whole costs first; the first respondent (the Collector) will recover his costs only from any remaining balance.
  • Refund: Amounts of costs already recovered by the Collector from the appellant in the lower court must be refunded to the appellant within four months pursuant to Section 82 of the Civil Procedure Code.
  • On precedent: The court applied and discussed multiple earlier authorities to resolve (i) the question of non-abatement where a respondent has died and (ii) accrual and limitation under Article 120. The opinion does not state that it is announcing a new legal principle; it applies existing authorities and established tests to the facts of the case.
Show all summary ...

1. The Collector of Trichinopoly is the plaintiff. The suit is instituted under Sections 92 and 93 of the Civil Procedure Code.

2. The first defendant (now deceased) was the alleged trustee and manager of the charities referred to in the plaint. The second defendant was alleged to be a transferee from the first defendant of a portion of the lands appertaining to the charitable trust.

3. The prayers against the 1st defendants were for removal of the 1st defendant from the trusteeship and for accounts. There was a prayer (b) "to declare the sale to the second defendant of the lands belonging to the charity to be invalid." This is the only relief claimed against the 2nd defendant. There were other prayers for the appointment of a new trustee and for vesting the trust property in the trustee so appointed. The plaintiff obtained all the reliefs asked against both the defendants in the lower court.

4. There were appeals against this decree by each of the defendants. But the first defendant is now dead, and her representatives not having been brought on the record, her appeal has abated and has been dismissed by us. The present appeal is by the second defendant.

5. It was contended before us on behalf of the plaintiff that the second defendant's appeal must also abate, inasmuch as the first defendant who was originally a respondent to this appeal is now dead and her legal representatives have not been brought on the record as required by Order 22.

6. In my opinion the appeal does not abate.

7. The mere fact that one of the respondents is dead and that his representative is not brought on the record will not make the appeal abate if the right survives to the appellant. In Gopal v. Ramachandra (1902) I.L.R. 26 B. 597 at 602, 603 and 607. It was succinctly stated that when the sections of the C.P.C. which are now replaced by Order 22 have to be applied to appeals the words ' the right to sue' must be construed as meaning "the right to prosecute by law, to obtain relief by means of legal procedure." This is not expressly stated in Order 22 Rule 11 which may be styled the interpretation clause of the Order. But several rules in the order become meaningless in their application to appeals unless these words are added; and the addition of these words would follow from giving to the expression " a right to sue" a meaning cognate to that which the rule expressly gives to the word '' suit " Gopal v. Ramchandra (1902) I.L.R. 26 B. 597 at 602, 603 and 607 was followed in Paramen Chetty v. Sundaraja Naick (1902) I.L.R. 26 M. 499.

8. The relief which the second defendant claims in appeal is first, that, as he was not a necessary party to the suit, his name should be struck off from the record, and secondly that if there was any cause of action against him it was barred by limitation ; that in either case the suit should be dismissed as against him. If the second defendant is entitled to claim this relief, he is entitled to do so in his sole right. The only person against whom this relief is claimed is the plaintiff. On the death of the 1st defendant, the second defendant's right to claim this was not affected. A test for deciding whether the right survives was suggested by the Government Pleader: viz., whether the appellant can succeed, and the decree can be reversed, without bringing the legal representative of the deceased party on the record. This test is satisfied in the present appeal. The question on which adjudication is sought by the second defendant as appellant before us will not affect the deceased party. See Srinivasa Chari v. Gnanaprakasa Mudaliar (1906) I.L.R. 30 M. 67, 68, 69. An ingenious argument was put forward on this point, that the lower court's decree entitled the 2nd defendant to sue the first defendant for damages for breach of covenant for title-if there was any such covenant; that the first defendant was consequently interested in the appeal of the 2nd defendant. The argument does not seem to require any detailed refutation. I hold therefore, that the appeal does not abate.

9. On the merits, several questions of law were argued before us. It is necessary to deal only with the question of limitation. I am of opinion that the claim, if any, against the second defendant was barred.

10. I express no opinion on the point whether the plaintiff had any cause of action against the second defendant; but will assume that in the circumstances of this case, though the suit was brought by the Collector under Sections 92 and 93 of the Civil Procedure Code such a declaration as is here sought by prayer (6) can be asked and obtained against a person who claims to be a transferee from the trustee.

11. It was suggested in the first instance that the Collector's right to obtain this relief (assuming it exists) is not barred as Section 10 of the Limitation Act prevents the right to follow the trust property in the second defendant's hands, from being barred by any length of time. The second defendant has been found to be an assign for valuable consideration and that finding has not been attacked before us. But it was argued that it has not been found that the second defendant is a transferee in good faith and that the mere fact of his being a transferee for consideration will not make the plea of limitation available to him, unless he is also a transferee in good faith. This contention cannot be upheld. Trust property in the hands of a transferee in good faith for consideration without notice of the trust cannot be followed by the beneficiary at all. See Trusts Act Section 64. The right to follow arises only where the transferee has not acted in good faith. (1) If such a transferee has paid no consideration he is not an assign for valuable consideration within the terms of the Limitation Act Section 10, and in his case a suit for the purpose of following trust property is not barred by any length of time. But (2) where the transferee is an assign for valuable consideration, (a) if he has acted in good faith , without having notice of the trust he acquires immediate title to the property under Section 64. of the Trust Act; or (b) if he has not acted in good faith, but has paid valuable consideration, he acquires good title after the lapse of the period necessary for extinguishing (under Section 28 of the Limitation Act) the right of the beneficiary to follow the trust property in his hands. This is in accordance with principle. Where there is valuable consideration for the transfer the original trust property is replaced by the consideration. There is no such consideration, and no question is raised here as to the adequacy of the consideration.

12. If limitation can be pleaded then the article applicable to the suit is Article 120. This was conceded. It was argued, however, by the learned Government Pleader that time did not begin to run from the date of the execution of the sale of the 26th January 1899 which is alleged to have been made in breach of trust and a declaration of the invalidity of which is sought in prayer (6) of the plaint but that it began to run only from the time when the Collector was informed of the facts entitling him to take action under Section 92 of the Civil Procedure Code. It was strenuously pressed upon us that a public officer has no duty cast upon him to go round and examine public trusts and that suits which he is entitled to institute must not be allowed to be barred though he may have no knowledge of his right to sue. The article must, however, be construed as it is, and I find myself unable to see how the meaning suggested by the learned Government Pleader can be read into the words "when the right to sue accrues." The article must be construed as it is notwithstanding that Article 134 prescribes a period of 12 years from the date of the purchase from a trustee when possession is sought for. If the Collector can sue under Section 92 of the Civil Procedure Code for a declaration against an alleged transferee in breach of trust, (on which point I express no opinion), then the suit must it seems to me be brought within 6 years of the sale. Time began to run therefore on 26th January 1899, and the suit was brought more than six years thereafter. It was in my opinion barred by limitation.

13.The appeal will be allowed and the suit dismissed against the second defendant. The costs of both parties to the appeal in both courts will be payable out of the Trust funds, but the appellant will recover his whole costs first and the 1st respondent will recover his costs only out of the balance. We are informed that some costs incurred in the lower court have been recovered by the Collector from the Appellant. These will have to be refunded to the appellant, and under Section 82 of the Civil Procedure Code we specify 4 months from this date for this being done.

Spencer, J.

14. I agree that the appellant can obtain the relief that he seeks in this appeal without making the legal representatives of the 2nd respondent parties.

15. In Durga Charan Sircar v. Jotindm Mohan Tagore (1899) I.L.R.27 C. 493 at page 497 the test employed for ascertaining whether a particular defendant was a necessary party to the suit was to see (1) whether there was a right to some relief against him in respect of the matter involved in the suit; (2) whether his presence was necessary to enable the court effectually and completely to adjudicate upon and settle all the questions involved in the suit. The questions involved in an appeal do not necessarily include all the questions involved in the suit to which it is related. If we read 'appeal' wherever the word 'suit' occurs in the above passage and consider what are the reliefs asked for by the appellant in the present appeal it will appear that he can obtain all that he wants without the presence of the 1st defendant or her legal representatives.

16. There has been considerable divergence of opinion in the reported decisions of Courts of India as to the scope of Section 539 (corresponding to Section 92 of the code of 1908) before the present code became law. Now the question as to the powers of a court proceeding under Section 539 to remove trustees (held to be within the competence of the court by Sabbayya v. Krishna (1890) I.L.R. 14 M. 186. Husein Begam v. The Collector of Moradabad (1897) I.L.R. 20 A.46. Girdhari Lai v. Ram Lal (1899) I.L.R. 21 A. 200. Sajedur Raja Chowdhari v. Gour Mohum Das Baishnay (1897) I.L.R. 24 C. 418 and held to be without the competence of the Court by Nara simha v. Ayyan (1888) I.L.R. 12 M.157. Rangaswami Naickan v. Varadappa Naickan (1891) I.L.R. 17 M. 462 Budree Das Meekin v. Choone Lal Johurry (1906) I.L.R. 33 C. 789. Budh Singh Dadhuria v. Niradharan Roy (1905) 2 Cal. L.J. 431 has been settled by the legislature introducing clause (a) in section 92 (1). It is still a debateable question whether alienees of or trespassers on trust property can be joined as parties to a suit under this section. It was held in Ghazaffar Husain Khan v. Yawar Husain (1905) I.L.R. 28 A. 112 that alienees could be impleaded for the purpose of determining what properties are affected by the trust and in Sajedur Raja Chowdhari v. Gour Mohum Das Baishnay (1892) I.L.R. 15 M. 24 that they could be made parties for the purpose of recovering from them properties improperly alienated; but in Augustine v. Medlycott (1882) I.L.R. 16 M. 31 Strinivasa Ayyangar v. Strinivasa Swami (1899) I.L.R. 21 B. 170. Kazi Hussain v. Sagun Balakrishna (1880) 23 M.L.J. 347. Arunachella Chetti v. Muthu Chettiar (1906) I.L.R. 33 C. 789, Budree Das Mukim v. Chooni Lal Johurry (1905) 2 C.L.J. 431 and Budh Singh Dhuduria v. Niradbaran Roy (1909) I.L.R. 33 M. 31 it was decided that the section was not applicable to suits against strangers to the trust.

17. Now assuming without accepting that the Government Pleader is correct in his contention that the object of the section as shown by the addition of Clause 2 is to protect trusts against multifarious suits, that the words of the section are very wide, that the reliefs (a) to (g) are illustrative and do not limit the grant under (h) of such further or other relief as the nature of the case may require, the plaintiff's suit must still fail as against the 2nd defendant unless he can show that it is in time.

18. The relief asked against the 2nd defendant is a declaration that the sale of the trust properties to him is invalid, This suit can hardly be treated as a suit for recovery of possession of trust properties for which Article 134 would be appropriate.

19. It was held in Ottappurakhal Thayath Soopi v. Cherichal Pallikhal Uppathumma (1906) I.L.R. 33 C. 789 that the right to sue for a declaration that an alienation of property is invalid falls under Article 120 of the Limitation Act and accrues at the completion of the document, not when the plaintiff obtains knowledge of the alienation. The second defendant purchased under Exhibit B on 26th January 1899 and the plaint is dated 7th October 1909. Article 120 allows six years from the date of the right to sue accruing. The Sub-Judge finds that the Collector became aware of the alienation when he received the report of the Revenue Inspector Exhibit H dated 19th February 1905, but it appears that he was aware of some trust properties having been misappropriated and alienated when he passed the proceedings Exhibit 1 dated 9th June 1899. I therefore consider that the relief sought against the appellant is in any case time barred, and I agree in dismissing the suit against him with costs to be paid as directed in my learned brother's judgment.