Notwithstanding anything contained in the foregoing provisions of this Act , no suit against a person in whom property has become vested in trust for any specific purpose, or against his legal representatives or assigns (not being assigns for valuable consideration), for the purpose of following in his or their hands such property, or the proceeds thereof, or for an account of such property or proceeds, shall be barred by any length of time.
Explanation.— — For the purposes of this section any property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment shall be deemed to be property vested in trust for a specific purpose and the manager of the property shall be deemed to be the trustee thereof.
Legal Commentary & Landmark Judgments: Section 10
Section 10 of the Limitation Act, 1963 exempts suits against express trustees and their legal representatives from the bar of limitation where the suit is to follow trust property or its proceeds.
The Explanation clarifies that any property comprised in a Hindu, Muslim, or Buddhist religious or charitable endowment shall be deemed to be property vested in trust for a specific purpose, and the manager of such property shall be deemed to be the trustee thereof. The section requires an express trust, not a constructive, resulting, or implied trust.
Section 10 protects public charities and private express trusts from misappropriation by faithless trustees. However, practitioners must note the statutory carve-out: Section 10 does not protect trust property against transferees for valuable consideration who took possession in good faith.