J.M. SHELAT, J.

(1) PRIOR to 18/01/1944, M/s. Lakshmiratan Cotton Mills Co.Ltd. (hereinafter referred to as the appellant-company), Aluminium irporation of India Ltd. (hereinafter referred to as the corporation) ,J.K.. Limited, Beharilal Kailashpat India Supplies, Northern India Trading Go. and Northern India Brush Manufacturing Co. Ltd., were all jointly managed two groups) who may conveniently be called the Singhania and the Gupta groups. Disputes having arisen between them, they were referred to arbitration by a deed of reference, dated 9/12/1943. It is not necessary to into the details of the award) dated 18/01/1944, by which these disputes were adjudicated upon except that from and after the date of the award the aforesaid concerns were brought under the management and control of one or the other of the said two groups. The corporation came under the control and management of the Singhania group.

CLAUSE 9 of the award provided as follows :

"THE above award or directions in respect of Lakshmiratan Cotton Mills Co. Ltd., Aluminium Corporation of India Ltd., J.K. Ltd., Beharilal Kailashpat India Supplies, Northern India Trading Co. and Northern India Brush Manufacturing Co. Ltd., do not cover the advances which cither party or their separate firms may have made to all or any of them or their moneys which may be in deposit with them and they shah bo payable and paid in their usual course."

cording to the appellants, there existed in their trading books accounts in respect of amounts advanced or spent by them for the corporation in respect which clause (9) of the award specifically made provision for and also for interest due thereon. After the award was made the appellant-company sent a statement of account to the corporation, but this was objected to on ground that the appellant-company, during the course of the previous joint magement of the corporation, had not properly maintained the accounts I that several items were either not properly accounted for or erueled into. rrespondence thereafter ensued between the parties. The parties also Jointed their respective officers to meet and reconcile their respective ounts, the corporation being represented by its secretary-cum-Chief :ountant, one Subrainanyam and the appellant-company sometimes by one Arora and at other times by one Newatia. Since no settlement could be arrived at, the appellants filed two suits claiming Rs. 3,56,207-9-6 and Rs. 72,595-4-6 from the corporation, being Suit Nos. 63 and 65 of 1949.

(2) IN Para 14 of the plaint in Suit No. 63 of 1949, it was claimed that the suit was within time as after adjustment of several items in 1946 and 1947 a sum of Rs. 2,96,110-11-6 was found due to the appellant-company and that in any event the suit was saved from bring barred by limitation by a letter, dated 16/04/1946, addressed by the said Subramanyam, thereby acknowledging the liability of the corporation to pay the amount which would be found due and payable under the said accounts. Similar averments were also made in the plaint in Suit No. 65 of 1949. The written statements filed by the corporation, inter alia, pleaded that the said claims were barred by limitation, that the said letter did not amount to an acknowledgment within the meaning of S. 19 of the Limitation Act, 1908, which was then applicable to the suits, and lastly, that even if the said letter did amount to an acknowledgment, it was not binding on the corporation as the said Subramanyam had no authority to make any such acknowledgment for and on behalf of and binding on the corporation.

(3) ON the question of limitation, the Trial court raised three questions for its determination : (1) whether the letter (Exh. 1) was binding on the corporation, (2) whether it amounted to an acknowledgment and (3) if so, whether it would extend the period of limitation so as to save the claims made by the appellants from being barred. On consideration of the evidence, both oral and documentar