Part VIII of the Limitation Act 1963: Suits Relating to Trust and Trust Property
Part VIII of the First Division of the Schedule to the Limitation Act, 1963 contains Articles 92 to 96. These Articles prescribe limitation periods for specified suits concerning trust property and property forming part of certain religious or charitable endowments.
Meaning of limitation period under the Limitation Act
Section 2(j) of the Limitation Act, 1963 defines the period of limitation as the period prescribed for a suit, appeal or application by the Schedule. The prescribed period means the period of limitation computed in accordance with the provisions of the Act. Section 3 provides, subject to Sections 4 to 24, that every suit instituted, appeal preferred and application made after the prescribed period shall be dismissed even where limitation has not been set up as a defence.
Trust disputes also require attention to Section 10. It deals with suits against a person in whom property has become vested in trust for a specific purpose, or against that person's legal representatives or assigns other than assigns for valuable consideration, for following such property or its proceeds or for an account of such property or proceeds. The applicability of Section 10 and the scheduled Articles depends on the facts and legal character of the transaction.
Articles 92 to 96: limitation for suits relating to trusts and trust property
| Article | Description of suit | Period of limitation | Time from which period begins to run |
|---|---|---|---|
| 92 | To recover possession of immovable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration. | Twelve years | When the transfer becomes known to the plaintiff. |
| 93 | To recover possession of movable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration. | Three years | When the transfer becomes known to the plaintiff. |
| 94 | To set aside a transfer of immovable property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment, made by a manager thereof for a valuable consideration. | Twelve years | When the transfer becomes known to the plaintiff. |
| 95 | To set aside a transfer of movable property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment, made by a manager thereof for a valuable consideration. | Three years | When the transfer becomes known to the plaintiff. |
| 96 | By the manager of a Hindu, Muslim or Buddhist religious or charitable 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. |
How Part VIII applies
Article 92: immovable trust property
Article 92 applies to a suit to recover possession of immovable property that was conveyed or bequeathed in trust and was later transferred by the trustee for valuable consideration. The limitation period is twelve years, beginning when the transfer becomes known to the plaintiff.
Article 93: movable trust property
Article 93 concerns movable property conveyed or bequeathed in trust and subsequently transferred by the trustee for valuable consideration. The limitation period is three years from the time the transfer becomes known to the plaintiff.
Articles 94 and 95: religious or charitable endowments
Articles 94 and 95 deal with transfers for valuable consideration made by the manager of a Hindu, Muslim or Buddhist religious or charitable endowment. Article 94 concerns immovable property and prescribes twelve years. Article 95 concerns movable property and prescribes three years. In each case, time begins when the transfer becomes known to the plaintiff.
Article 96: recovery by a succeeding manager
Article 96 provides twelve years for a suit by the manager of a Hindu, Muslim or Buddhist religious or charitable endowment to recover movable or immovable property transferred by a previous manager for valuable consideration. The period begins from the death, resignation or removal of the transferor, or from the appointment of the plaintiff as manager of the endowment, whichever is later.
Important points when calculating limitation
The Schedule does not operate in isolation. The prescribed period is computed subject to the applicable provisions of the Limitation Act, including Sections 4 to 24. The correct Article must be selected according to the nature of the property, the legal capacity of the parties, the character of the transfer and the precise relief sought. The date on which the statutory starting event occurred is equally important.
This article is a general reference to the Limitation Act, 1963. Limitation can depend on pleadings, facts, knowledge, statutory exclusions and the relief actually claimed.