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.