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1966 Supreme(AP) 136

Andhra Pradesh High Court
Judges : A.V.KRISHNA RAO, P.JAGMOHAN REDDY
Akkipeddi Gopalasastry - Appellant
Versus
Vijayawada Engineering Metal Co.Ltd. - Respondent
Decided On : 07-21-66

The period of limitation for a suit for the recovery of specific movable property or for compensation for wrongfully detaining the same starts from the date when the detainer's possession becomes unlawful.

Headnote:

LIMITATION ACT - ARTICLE 49 - SUIT FOR RECOVERY OF SPECIFIC MOVABLE PROPERTY OR FOR COMPENSATION FOR WRONGFULLY DETAINING THE SAME - PERIOD OF LIMITATION - STARTS FROM THE DATE WHEN THE DETAINER'S POSSESSION BECOMES UNLAWFUL - DEMAND AND REFUSAL CAN BE INFERRED FROM THE CIRCUMSTANCES OF THE CASE.

Fact of the Case:

The plaintiff, as the liquidator of a company, entrusted the company's machinery to the defendant to put it in working order and sell it. The defendant was to keep accounts and share the profits with the plaintiff. After some time, the defendant stopped working and claimed to have delivered the machinery back to the plaintiff, which the plaintiff denied. The plaintiff filed two suits, one for an account of profits and the other for the recovery of missing machinery parts or their value.

Finding of the Court:

The court held that the suit for an account was governed by Article 120 of the Limitation Act and was within time. The court also held that the suit for the recovery of the missing machinery parts was governed by Article 49 of the Limitation Act and was also within time. The court found that the defendant's possession of the machinery became unlawful when he refused to deliver it to the plaintiff upon demand.

Issues: 1. Whether the suit for an account was barred by limitation? 2. Whether the suit for the recovery of the missing machinery parts was barred by limitation? 3. Whether the suit for the recovery of the missing machinery parts was barred by Order 2, Rule 2, C. P. C.?

Ratio Decidendi: 1. The suit for an account was not based on a breach of contract but on an agreement to render an account. Therefore, Article 120 of the Limitation Act applied and the suit was within time. 2. The suit for the recovery of the missing machinery parts was governed by Article 49 of the Limitation Act. The defendant's possession of the machinery became unlawful when he refused to deliver it to the plaintiff upon demand. The suit was filed within three years from the date of the demand and refusal, and was therefore within time. 3. The suit for the recovery of the missing machinery parts was not barred by Order 2, Rule 2, C. P. C. because the reliefs prayed for in the two suits arose out of different causes of action.

Final Decision: The court dismissed both appeals filed by the defendant. The court awarded costs to the plaintiff in both appeals.

( 1 ) THESE two letters Patent Appeals arise out of two connected suits O. S. 10 of 1959 and O. S. 16 of 1959 on the file of the Addl. District Judge, Krishna. The defendant who is the same in both the suits is the appellant in the above appeals which arise under the following circumstances: The plaintiff who is the same in both the suits is the liquidator of a company called the Vijayawada Engineering Metal Co. , Ltd. The said Company was started in 1947 and its workshop (foundry) was worked till the year 1959 when it was closed due to mismanagement. The Company fell into debts and was accordingly wound up voluntarily. As a result thereof the plaintiff was appointed as a liquidator to wind up the said Company by disposing of the machinery, etc. As the machinery was not in working order, the plaintiff wanted to put the same in working order before he could sell the same. Accordingly, the plaintiff, entrusted the same to the defendant who was related to him and requested him to put the workshop and machinery in working order so that it may be easily sold out to third parties. Thereupon an agreement, Ex-A-1 dated 14-3-1953 was executed between the plaintiff and the defendant, the material conditions of which are as follows: (1) The period for working the machinery was two years. (2) The defendant should invest all capital for working the machinery. (3) The defendant should keep accounts and pay Re. 0-6-0 out of the net profits to the plaintiff keeping the balance of Re. 0-10-0 for himself. (4) The Company will not be liable for any loss sustained by the defendant s management. (5) The defendant should deliver possession of the workshop with all its machinery if the defendant did not work for a period of three months consecutively. On the same day (14-3-1953) the plaintiff executed another letter in favour of the defendant directing him to make the necessary repairs and replacements to the building and machinery and providing that the expenses incurred should be paid to the defendant by the plaintiff. The plaintiff again executed another letter dated 16-3-1953 authorising the defendant to dispose of certain scrap samans entrusted to him so that the defendant may reimburse himself out of the monies realised by the sale of the scrap samans. As per the terms of the agreement, the defendant was put in possession of the machinery and the parts on 14-3-1958 itself. It may be stated that there was a good deal of correspondence between the plaintiff and the defendant wherein the defendant claimed to have stopped the working on 21-10-1953 as per the instructions of the plaintiff and delivered the machinery, etc. , to the plaintiff while the plaintiff denied that he ever asked the defendant to stop working of the workshop or that he took delivery of the machinery that the defendant failed to deliver in spite of various notices issued to him The plaintiff finally sold the workshop machinery to a third party on 31-5-1955. It la the plaintiffs case that in spite of a telegraphic notice, Ex. B. 4 dated 31-5-1955 the defendant failed to open the locks of the workshop and that therefore the plaintiff had to break open the workshop and take forcible delivery of possession in the presence of mediators on 31-5-1955. Thereafter, the plaintiff filed on 31-3-1958 the suit O. S. 239/ 58 on the file of the District Munsif s Court, Vijayawada subsequently transferred and registered as O. S. No. 16 of 1959 on the file of the Additional District Judge, Krishna for settlement of accounts and for recovery of his share of the profits. As the plaintiff discovered that a large number of machinery parts originally entrusted to the defendant were found missing when they were taken delivery of by the plaintiff the plaintiff instituted another suit on 19-6-1958 as O. S. 114 of 1958 in the Subordinate Judge s Court, Vijayawada which was subsequently transferred and registered as O. S. 10 of 1959 on the file of the Additional District Judge, Krishna for the recovery












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