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1937 (12) TMI 13

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..... cle 36 relates to suits for compensation for malfeasance, misfeasance or non-feasance independent of contract and not specially provided for in the schedule of the Act. It fixes a period of two years from the date when the malfeasance, misfeasance or non-feasance takes place. Article 120 is the residuary article. It fixes a limitation period of six years in respect of suits for which no period of limitation is provided elsewhere in the schedule and time begins to run when the right to sue accrues. It has been necessary to refer the questions set out above to a Full Bench because there are conflicting decisions of this Court with regard to the first question, and: the second question follows if Article 120 applies, because in some cases for .....

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..... 33 : I.L.R. 33 Mad. 308, the suit was instituted by the plaintiff as the trustee of a temple for recovery of a sum of money representing the loss to the temple occasioned by breaches of trust committed by the father of the defendant, he having been the preceding trustee. The suit was dismissed on the ground that it was barred by the law of limitation. On appeal it was argued that Article 98 was applicable, but the argument was rejected as the Court was of the opinion that the suit against the father was time barred under Article 36 and, therefore, no suit would lie against his son. Another case bearing on the first question embodied in the reference and quoted to us is that of Shirinbai Dinshaw v. Navroji Pestonji A.I.R. 1936 Bom. 30 where .....

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..... e 36 to apply to trustees. In the first place, in Article 36, the word compensation is used, which is the appropriate word to apply in connection with a suit to remedy an injury to a person or a person's property. Article 98 speaks of suits to make good the loss, which are more appropriate than the word compensation when the loss is not a personal one. Then it must be remembered that when the prescribed period of limitation has commenced it continues until the sands have run out. Something may happen to start a fresh period of limitation, but that is another matter. If Article 36 were to apply to an act of non-feasance on the part of the trustee, it would mean that if the trustee lived he would be free from all liability in two ye .....

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..... trustee had been appointed. If there are other trustees who are themselves not liable, the period of limitation will start running immediately the loss is occasioned, because they will have in themselves the right to sue their co-trustee for the loss occasioned by him. Of course, if the co-trustees nave also made themselves liable for the breach of trust the position would be the same as in the case of a defaulting sole rustee. In the case of a private trust, the cestui que trust would ordinarily have the right to sue from the date of the breach of trust. It will, therefore, depend on the circumstances when time will commence to run and we answer the second question in this sense. JUDGMENT S. Varadachariar, J. 5. Now that the Full .....

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