• Suit for possession of property

In 1992, my grandfather had donated a pice of land to an educational trust and the said agreement was registered. However, the school became non-operational in 1995 and the land has been in our family possession since. Even the property tax have been paid by us since 1995 and the mutation of property in the revenue records has been done in my name. (Based on an unregistered settlement deed). Till recently, the EC had shown the name of the trust. Recently, we have registered a settlement deed for this particular property to make it valid in the eyes of law. My questions is A) Can the trust claim rights over the property? B) Does the limitation act apply to this? If the trust can claim rights, what are my remedies?
Asked 7 years ago in Property Law
Religion: Hindu

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9 Answers

1. according to doctrine of cypres trust cannot claim this property because purpose of the trust is now failed.

2. it was educational trust devoted for running of a school and if school became non-operational hence property of the trust automatically returned to the owner.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Once your father had executed gift deed in favour of trust then trust would be absolute owner of the property

2) mutation in revenue records is only for payment of property tax . It does not confer title to the property

3) trust can move court to set aside settlement deed

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

1. Once the gift is done through registered deed the transfer is complete from the end of the donor but if the donee has not taken possession of the same or exercised any right over it then it may not be complete from the side of the donee.

2. However do check whether the trust is still in existence or not.

if not then you are in better place.

3. Moreover since you are in possession of the land then even if the trust tries to claim the land though a litigation you can take the defence of adverse possession.

4

Devajyoti Barman
Advocate, Kolkata
22822 Answers
488 Consultations

5.0 on 5.0

It seems that your grandfather had gifted the property to the trust. It remains to be seen how the property reverted to you on the school becoming non-operational. Was there a clause in the gift deed to this effect? The gift deed executed by your grandfather, trust deed and the settlement deed have to be perused threadbare to advise. Without perusal of these documents it is not possible to form an opinion. So consult a lawyer with all these documents.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. The non-existing trust cannot make any claim on the property.

However if someone from the trust board reopen the issue then there may be a litigation to this since the property was transferred in favor of the trust by a registered document.

2. Owner of the property is not barred by limitation when someone occupies his property illegally.

The property in your possession now is an unauthorised possession and illegal as per the registered sale deed document in favor of the trust already executed by your grandfather. Now you can analyse the position law in this regard.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

1) mere possession however long does not necessarily mean that it is adverse to the true owner and the classical requirement of acquisition of title by adverse possession is that such possessions are in denial of the true owner's title.

2) Adverse possession is a hostile possession by clearly asserting hostile title in denial of the title of the true owner. It is a well-settled principle that a party claiming adverse possession must prove that his possession is "nec vi, nec clam, nec precario", that is, peaceful, open and continuous. The possession must be adequate in continuity, in publicity and in extent to show that their possession is adverse to the true owner. It must start with a wrongful disposition of the rightful owner and be actual, visible, exclusive, hostile and continued over the statutory period

3) a person who claims adverse possession should show:

(a) on what date he came into possession,

(b) what was the nature of his possession,

(c) whether the factum of possession was known to the other party,

(d) how long his possession has continued, and

(e) his possession was open and undisturbed

4) bye laws are meant for internal mangement of society and must be approved by the registrar of socieites

5) you can obtain copy from the registrr office

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

1. The trust being a registered body, you can get a certified copy of the registered deed along with the copy of the bye laws if submitted with the deed.

2. Approach the Registrar office where the trust has been registered.

3. Yes, the bye-laws would contain the complete details of the trust and the procedures or rules of the same to be followed.

4. In general, the gift deed transferring the property to the educational trust was executed by a registered document, hence the subsequent documents executed unilaterally without the consent or without being executed by the title holder to the new aspirant shall be invalid in law. Therefore the question of adverse possession may not arise.The arguments on the basis of taxes paid or other mutation records also cannot be held as valid ground because the mutation records or tax receipts cannot be held as title documents.

You may consult a local lawyer and discuss the matter in detail as far as practical issues are concerned and decide about further course of action to get the property legally on your name.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

1) once gift deed is executed duly stamped and registered donee is absolute owner of property

2) in the event donee fails to pay property taxes the propety can be attached and sold to recover property taxes as arrears of land revenue

3) if property has been in your possession for last 21 years and possession is open and undisturbed and to knowledge of the owner you can claim benefit of adverse possession

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

A) The original 1992 deed mentioned that the land is to be used for educational purposes and that the society must pay all taxes including property taxes. Since the school is non-operational since 1995, they have neither paid taxes nor had possession for 20 years. How can a donee, not pay taxes and not make a claim for possession for 20 years?

The donor has gifted the property to the trust in the year 1992 and has communicated that the trust has to pay all the taxes thereafter.

This clearly implies the alienation of the property by the donor.

Therefore the donor has no rights in the property after it was transferred by registered gift deed document.

Now from where the donor had acquired any interest in the property in the year 1995 when he had already relinquished all his rights in the property and what prompted him to pay the taxes for the property when he has no interest in the property.

If the trust failed to pay taxes to the government, the authorities will initiate proper legal action to recover the same from the trust or seize the property, so all the actions will be initiated by the authorities only and not by the donor.

Therefore the acts of donor of paying the tax and later on retrieving the property on that basis is actually illegal and unlawful.

B) According to Section 65 of the Limitation Act 1963, the statutory period of limitation that is allowed for the possession of immovable property or any interest therein is 12 years (in the case of private property). If the society wanted possession, then they must have filed a suit within 12 years of 1995. If they do so now, isn't it time barred and barred by law??

When the character of suit is one of declaration of title and recovery of possession, Art.65 of the Limitation Act is applicable. In suit for declaration and injunction in respect of claim

for immovable property, period of limitation is 12 years and not 3

years.

If you have taken the possession of property illegally without the knowledge of the owner i.e., the trust, how far your claim is justifiable. Thus law of adverse possession or the provisions of limitations act referred to herein above may not be applicable to this position.

C) Your last point mentions the fact that illegal occupants cannot apply "Adverse Possession". I beg to differ with your statement. The law also clearly states that if the trespasser is in settled possession and such adverse possession continues for 12 years, the right of the true owner is extinguished. I would assume that I am in a settled possession.

You are interpreting the law to your convenience, whereas when the question before court about the authority to occupy the property arises, your above explanation may not stand ground,

In any case there is no trust or society which is claiming possession of property as of now, hence you may decide about this wisely.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

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