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2009 Supreme(AP) 202

HIGH COURT OF ANDHRA PRADESH
THE HONOURABLE MR. JUSTICE V.V.S. RAO
M.S.N. Charities, Kakinada - Appellant
Versus
Pilla Ramarao (died) per L.Rs & Others - Respondent
Appeal Suit No.1195 of 1991
Decided on : 25-03-2009

Advocates appeared
For the Appellant :C.S.K.V. Ramana Murthy, Advocate. For the Respondents:Srinivas Chittusu, Advocate.

Headnote:(a) Limitation Act, 1963 - Sections 18 and 19 and Section 25 (3), Contract Act, 1872 - In terms of sections 18 and 19 if the debt is acknowledged before expiration of limitation period, limitation restarts from the date of acceptance when part payment was made - Nothing more is required - In terms of section 25(3) of Contract Act, however, a further undertaking would be required for revival of the debt - Promissee has to plead and prove four components/conditions.

       AIR 1930 Patna 604; AIR 1932 Allahabad 461; AIR 1941 Nagpur 100 and AIR 1975 Madras 164 - Relied upon

       AIR 1953 SC 225 - Distinguished

       (b) Contract Act, 1872 - Section 25 (3) - Mere acknowledgement of debt without further promise to pay does not save the debt from becoming time barred.

       

JUDGMENT :

This is plaintiff's appeal against the judgment and decree dated 25.02.1991 in O.S.No.3 of 1989 on the file of the Court of the Subordinate Judge, Pithapuram. Suit for recovery of Rs.2,46,584.05ps was partly decreed and plaintiff is in appeal with regard to other part.

During pendency of the appeal first respondent/first defendant died and his LRs are on record. Respondent Nos.3 and 4/defendant Nos.3 and 4 are represented by counsel. In spite of service of notice, defendant Nos.2 and 6 have not chosen to enter appearance.

Appellant (hereafter called, plaintiff), which is an institution – Malladi Satyalingam Nayikar Charities, Kakinada, for charitable purposes, statedly owns about 100 acres of fertilized lands. An extent of agricultural double crop wet land in Acs.31.64 comprised in survey Nos.95/1 and 98/1 situated at Fakhruddinpalem Village, Pithapuram Mandal, East Godavari District, was leased out to defendants. Be it noted that second defendant is mother and defendant Nos.1, 3 to 6 are her children, who had joint lease from 1955. The agreed makta was 242 kata bags (each 75 kgs) payable on or before 15th January of each year.

Defendants did not pay makta for ten years for the period from 1978-79 to 1987-88. Plaintiff's institution filed the suit for recovery of makta for these years alleging that from 1977-78 to 1982-83 first defendants paid an amount of Rs.60/-as part payment duly acknowledging the debt towards makta.

It was further alleged that first defendant made part payment of Rs.90/- from 1977-78 to 1985-86, but failed to pay balance amount in spite of such fresh contract. Hence, the suit.

First defendant filed written statement, which was adopted by second defendant. Defendant Nos.3 to 6 remained ex parte.

It is the case of defendant Nos.1 and 2 that on account of various proceedings initiated by plaintiff, defendants could not realise the usufructs from the tenancy lands for 1978 - 79. For 1979-1980, defendants filed remission petitions and therefore, they cannot be said to be in arrears. For the years from 1980-1981 to 1987-88 defendants also filed remission petitions before special officer, Pithapuram, which were pending and therefore, defendants cannot be said to be in arrears for payment of makta for the leased lands. Rent for 1986-87 and 1987-88 was paid completely in cash and therefore, plaintiff is not entitled to claim the amount. The allegation of plaintiff that there was fresh contract by reason of part payments was denied. Defendants further contended that they never entered into fresh contract and the suit is barred by limitation. In view of rival pleadings, trial Court framed the following issues.

(i) Whether the plaintiff has got right to collect 170 bags and 43 kgs of paddy as arrears of rent for the year 1978-79? (ii) Whether the plaintiff is entitled to collect 241 bags 45 kgs of paddy towards rent for 1979-1980? (iii) Whether the plaintiff is entitled to receive 1 bag 9 kgs of paddy as arrears of rent for 1980-81? (iv) Whether there are arrears for the years 1981-82 to 1987-88 as shown in the plaint? (v) Whether the first defendant undertook to pay the entire balance on his behalf and on behalf of other defendants for the years 1977 to 1983? (vi) Whether the plaintiff is entitled to interest at the rate of 12% per annum? (vii) Whether the plaintiff is entitled to claim an amount of Rs.2,46,584-05ps? and (viii) To what relief? Senior Assistant of plaintiff institution was lone witness who marked Exs.A1 to A29. First defendant gave evidence as D.W.1 and marked Exs.B1 to B40. Though issues like binding nature of acknowledgement made by first defendant on other defendants were also considered, crucial issue before trial Court was issue (v) which deals with the question whether first defendant undertook to pay the entire balance on his behalf and on behalf of other defendants for the years from 1977 to 1983? Insofar crop years from 1982-83 to 1987-88, trial Court accepted the plea and passed
































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