Judgment

N. H. BHAGWATI, J. : This appeal with a certificate under S. 109 (a) read with S. 110 of the Code of Civil Procedure (Act V of 1908) is directed against the judgment and decree passed by the Nagpur High Court dismissing the appeal of the appellant and confirming the dismissal of his suit by the learned Second Additional District Judge, Akola.

2. The appellant, who was the plaintiff in the trial Court filed in the Court of the First Additional District Judge, Akola, Civil Suit No. 2-B /7-B of 1944 against the respondent, a limited company incorporated under the Indian Companies Act of 1882, which owned a Ginning and Pressing Factory and carried on business of ginning and pressing cotton at Akot in District Akola.

3. The appellant alleged that he was one of the creditors of the company which used to borrow money from him for about 35 years past. He claimed to have acted as Banker of the company and the sums borrowed from him were entered in the account books of the company in two khatas, one known as current account or "chalu khata" and the other described as "fixed deposit khata" An account used to be made up at the end of every year and the amount found due at the foot of the account was entered in the balance-sheet of the company which was adopted at the Annual General Meeting of the company. Deposit receipts also used to be passed for the amounts standing in the fixed deposit khata from time to time and at the end of the year ending July 1939, a sum of Rs. 79,519-12-9 was found due by the company to him on both these accounts. On January 15, 1940, the company passed a deposit receipt in his favour for this amount which he demanded from the company by his letters dated May 10, 1941 and May 17, 1941. The company failed and neglected to pay the said amount with the result that he filed on June 16, 1944, a suit against the company for recovery of a sum of Rs. 1,03,988 made up of Rs. 79,519-12-9 for principal and Rs. 24,468 as interest from August 1, 1939, to January 15, 1944.

4. The claim as laid in the plaint was that all these amounts which had been borrowed by the company from him were payable on demand to be made by him as creditor and they were deposits with the company, but in order that the company may not be compelled to pay a big sum on demand, items in the current account were being transferred to the fixed deposit account from time to time. The amounts of these deposits being thus payable on demand the cause of action accrued to him on May 17, 1941, and limitation for the suit expired on May 17, 1944. But, as the Courts were closed on that day, the suit was filed on the first opening day i. e., June 16, 1944, and limitation was therefore saved by S. 4 of the Limitation Act. He also relied upon the acknowledgments of his debt made by the company in (a) the resolution passed by the Board of Directors on May 20, 1941, (b) the balance- sheet of the company for the year 1940-41 dated October 10, 1941, and for the years 1941-42 and 1942-43, and (c) the entry in the khata of the plaintiff in the books of the company made on or about July 31, 1941, and signed by the Chairman of the company. He further relied upon an application made under S. 162 of the Companies Act to liquidate the company on June 16, 1941, which application was however dismissed by the Court on June 16, 1944, stating that as he was bona fide prosecuting this application for the same relief as claimed in the suit and as the Court was unable to entertain the application because the debt was disputed by the company, he was entitled to deduct from the period of limitation, the time spent by him under S. 14 of the Limitation Act.

5. This claim of the appellant was contested by the respondent mainly on the ground that the suit was barred by the law of limitation. Both the Courts below negatived this claim. The trial Court dismissed his suit and the High Court, on appeal, dismissed his appeal and confirmed the dismissal of his suit by the trial Court; hence th