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1963 Supreme(AP) 214

Andhra Pradesh High Court
Judges : JAGMOHAN REDDY, VENKATESAM
Bhadurmal - Appellant
Versus
Bizaatunnisa Begum - Respondent
Decided On : 11-12-63

The provisions of Sections 20, 28, and 35 of the Jagirdar Debt Settlement Act are essential for determining the limitation period, computing the amount of debt, and scaling down the debt based on the debtor's paying capacity.

Headnote:

JAGIRDAR DEBT SETTLEMENT ACT - SECTION 20, 28, 35 - LIMITATION - ACKNOWLEDGMENT - PAYMENT - SAVING OF LIMITATION - SCALING DOWN OF DEBT - PAYING CAPACITY OF DEBTOR.

Fact of the Case:

The appellant, a creditor, filed an appeal against the decision of the Jagirdar Debt Settlement Board (Board) which held that four out of five debts owed to him by the respondent, a jagirdar-debtor, were time-barred. The appellant also challenged the Board's decision regarding the remaining debt of Rs. 18,000, claiming that it was also time-barred.

Finding of the Court:

The court held that the four debts were indeed time-barred as there was no evidence to prove that the payments made were verified and signed by the debtor or her agent, as required under Section 20 proviso of the Limitation Act. However, the court found that the debt of Rs. 18,000 was not time-barred as the last payment was made on 14/09/1950, which was within the limitation period. The court also held that the Board erred in not allowing the appellant to prove certain documents filed by him, including letters from the debtor acknowledging the debt, and in not examining the debtor as a witness.

Issues: 1. Whether the four debts were time-barred. 2. Whether the debt of Rs. 18,000 was time-barred. 3. Whether the Board erred in not allowing the appellant to prove certain documents and in not examining the debtor as a witness.

Ratio Decidendi: 1. The court held that the four debts were time-barred as there was no evidence to prove that the payments made were verified and signed by the debtor or her agent, as required under Section 20 proviso of the Limitation Act. 2. The court held that the debt of Rs. 18,000 was not time-barred as the last payment was made on 14/09/1950, which was within the limitation period. The court also held that the Board erred in not allowing the appellant to prove certain documents filed by him, including letters from the debtor acknowledging the debt, and in not examining the debtor as a witness. 3. The court held that the Board erred in not allowing the appellant to prove certain documents and in not examining the debtor as a witness.

Final Decision: The court allowed the appeal and remanded the matter back to the Board for reconsideration. The Board was directed to determine whether the debt of Rs. 18,000 was barred by limitation, to apply the provisions of Section 28 and 35 of the Jagirdar Debt Settlement Act, and to consider the question of scaling down the debt based on the debtor's paying capacity.

Judgement Key Points

Key Points: - The four debts were held time-barred due to lack of evidence that payments were verified and signed by the debtor or her agent, as required under Section 20 proviso of the Limitation Act (!) . - The Rs. 18,000 debt was not time-barred because the last payment on 14/09/1950 falls within the limitation period, and the Board’s handling of evidence and debtor examination impacts this finding (!) . - The Board erred in not allowing the creditor to prove certain letters acknowledging the debt and in not examining the debtor; the matter is remanded to apply Sections 28 and 35, determine if the debt is barred by limitation, and consider scaling down after assessing paying capacity (!) (!) . - The cross-objections and the scope of Civil Procedure Code provisions under Section 51 are addressed, allowing admissibility of objections under Order 41, Rule 22 in this appellate context (!) . - The matter is remanded to the Board for further consideration, including whether to apply Section 28, Section 35, and to determine paying capacity and potential scaling down, with costs to abide by the result (!) .

How to determine which debts are time-barred under the Jagirdar Debt Settlement Act in light of Section 20 proviso and evidence of payment verification?

How to apply Sections 28 and 35 of the Jagirdar Debt Settlement Act to compute debt, assess paying capacity, and consider scaling down after remand?

What are the proper procedures for admissibility of documents and examination of the debtor on remand, including acknowledgment and payment evidence?


( 1 ) THIS appeal raises an interesting question of limitation. The appellant is a creditor, while the respondent is a jagirdar-debtor. It is the case of the appellant that the respondent has been borrowing moneys from him on bonds and promissory notes. She borrowed a sum of Rs. 18,000. 00 on the 12th Meher 1356 F. at 9% per annum, repayment being on monthly instalments of Rs. 300. 00 with a condition that default of any instalment would entitle the creditor to recover the balance of the amount. Apart from this debt, there are four others Rs. 3,200. 00 borrowed on a document dated the 4th Thir, 1357 F. at 12% per annum; Rs. 500. 00 under a document dated 10th Meher 1357 F. at 12% per annum; Rs. 600. 00by a document dated the 15th Bahman 1358 F. and Rs. 8,000. 00 under a document of 10th Ardibehist, 1353 F. at 6% per annum. Except for the first debt of Rs. 18,000. 00 obtained under a band dated the 12th Meher, 1355 F. , all the other debts have been held by the Board to be time-barred. In respect of the first debt, it has been held that Rs. 9,000. 00 were paid and the balance of the amount together with interest is due. The appellant complained that the Jagirdar Debt Settlement Board (hereinafter referred to as the Board) has not applied the provisions of Section 28, nor of Section 35 and that the four other debts which have been held to be time-barred are not time-barred. The respondent has filed a memorandum of crass-objections not only supporting the Boards decision, in respect of the four debts that have been time-barred, but also challenging the award in respect of first debt of Rs. 18,000. 00 which, according to the respondent is also time-barred.

( 2 ) A preliminary objection has been raised by the learned Advocate for the appellant to the maintainability of the cross-objections. It Is contended that under Section 51 of the Jagirdar Debt Settlement Act, the provisions of the Civil Procedure Code apply, save as otherwise expressly provided in the Act, and since Sections 47 to 49 provide only for an appeal, it must be deemed that the provisions of the Civil Procedural Code which deal with the filing of cross-objections are specifically excluded. We find it difficult to accept this contention. What Section 51 provides is for the application of the provisions of the Civil Procedure Code to all proceedings under Chapter III, unless some other procedure is prescribed with respect to any particular matter. The provisions of Sections 47 to 49 deal with appeals and Court-fees and grounds of appeal and in so far as this provision is concerned, It must be deemed that the provisions of the Civil Procedure Code in respect thereof are (sic) (not ?) applicable. But that does not prevent the application of Order 41, Rule 22 which provides for objections to the decree or award, as if he had preferred a separate appeal. Having regard to the general scope of the application of the provisions of Civil Procedure Code under Section 51, we cannot accept the argument of the learned Advocate for the appellant that Order 41, Rule 22 does not apply to a case of appeal filed under Section 47.

( 3 ) THE next point is one relating to limitation. It is not denied, and the learned advocate for the appellant was not able to contend otherwise, that the debts in items 2 to 5 are time-barred. But the learned advocate now insists that he may be given an opportunity to adduce evidence in respect of these debts also. We cannot allow him to adduce any additional evidence because the evidence on record is sufficient for the disposal of this question. Trough certain amounts have been noted as having been paid, no evidence has been adduced to prove, that they have been verified and signed by the debtor or her agent which is necessary under Section 20 proviso of the Limitation Act.

( 4 ) NOW in respect of the debt of Rs. 18,000. 00 evidenced by the document of 12th Meher 1356 F. the last payment is shown in the accounts as on 14/09/1950. If this entry is proved, t




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