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Cite an instance in which a suit is not barred by any length of time. Illustrate your answer (The Limitation Act, 1963)

January 11, 2019 0 Comment

The following conditions must be fulfilled before benefit of section 10 can be had:

1. There must be property which has become vested in a person in trust for a Specific Purpose.

2. The suit must be against such person or his legal repre­sentative or assign (not being an assign for valuable considera­tion). The section has no application in a suit between the bene­ficiary and the trustee on the one hand and strangers on the other.

3. The suit must be for the purpose of following in the hands of such person the trust property or its proceeds or for an account of such property or proceeds.

Problems under Section 10

A creates an express trust on the 1st January, 1932, and dies on the 1st January, 1933. B, the heir of A, of repudiating the trust, claims the property back from the trustee. He files his suit on the 1st May, 1946. The trustee says that the suit is barred by Articles 142 and 144, having been filed beyond 12 years. B claims that the property is the subject of express trust and section 10 declares that there is no limitation for recovery of property subject to express trust. Decide the point.

A. The suit is barred by limitation. Section 10 applies only to suits for following trust-property or the proceeds thereof or for an account of such property of proceeds. It does not apply to a suit by the heir of a settlor for recovery of property on the ground that the trust-deed is void and that; therefore, the heir is entitled to recover it.

The idea is that the property which has vested in trust must be applied for the purpose for which it is meant and if a trustee commits breach of trust, he should not get the aid of. Limitation in his nefarious act. But at the same time the very purpose of the section would be frus­trated if the settlor or his heir were entitled to revoke the trust at any period of time.