1972 Supreme(Bom) 41
IN THE HIGH COURT OF BOMBAY
Apte M.S., J.
Appellants: Someshwar Bapurao Nilakhe
Vs.
Respondent: Nivritti Baburao Gholave
Civil Revn. Appln. No. 863 of 1968 Decided On: 24.03.1972
Counsels:
For Appellant/Petitioner/Plaintiff: P.S. Patankar, Adv. for S.C. Pratap, Adv.
For Respondents/Defendant: B.Y. Deshmukh, Adv. for R.S. More, Adv.
An acknowledgment of liability in writing can extend the period of limitation for filing a suit, as provided under Section 18(1) of the Limitation Act, 1963.
Headnote:
Limitation - Acknowledgment of Liability - The court held that the suit was not barred by limitation as the acknowledgment of liability by the defendant extended the period of limitation, and the suit was filed within the extended period.
Fact of the Case:
The plaintiff filed a suit against the defendant for a sum owed, and the defendant pleaded that the suit was barred by limitation.
Finding of the Court:
The trial Court held that the suit was barred by limitation, but the higher court found this view to be erroneous and allowed the petition, setting aside the trial Court's order and sending the matter back for further proceedings.
Issues: The main issue was whether the plaintiff's suit was barred by limitation due to the time period between the dealings and the filing of the suit.
Ratio Decidendi: The court applied Section 12(1) and Section 18(1) of the Limitation Act, 1963, and Section 1 of the General Clauses Act, 1897 to interpret the computation of the period of limitation and the effect of acknowledgment of liability on extending the limitation period.
Final Decision: The petition was allowed, the trial Court's order was set aside, and the matter was sent back for further proceedings. The opponent was directed to pay the petitioner's costs of the petition and bear his own.
2. Plaintiff is a businessman and defendant-opponent in this revision petition had dealings with him between 3-2-1962 and 1-8-1963 and on account of this dealing the defendant owed a sum of Rupees 373-60 to the plaintiff at the foot of the account. This liability was acknowledged by the defendant on 5-11-1963. The plaintiff instituted the suit out of which this petition arises on 5-11-1966. The defendant pleaded that the suit was barred by limitation. This question was taken up for consideration as a preliminary issue by the trial Court and it held that the suit was barred by limitation and consequently dismissed it with costs.
3. The view taken by the trial Court is obviously erroneous. Section 12 (1) of the Limitation Act, 1963 provides that in computing the period of limitation prescribed for any suit, appeal or application, the day from which such period is to be reckoned shall be excluded. Now, under Section 18 (1) where, before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he derives his title or liability a fresh period of limitation shall be computed from the time when the acknowledgment was so signed (underlining is mine). Section 1 of the General Clauses Act, 1897, provides that in any General Act or Regulation made after the commencement of this Act, it shall be sufficient for the purpose of excluding the first in a series of days or any other period of time to use the word "from", and, for the purpose of including the last in a series of days or any other period of time, to use the word "to". Since Section 18 91) of the Limitation Act provides that the fresh period of limitation shall be computed from the time when the acknowledgment was so signed, in view of the provisions of Section 12 (1) of the Limitation Act and of Section 9 (1) of the General Clauses Act, it is clear that the day on which the acknowledgment is made will have to be excluded in computing the period of limitation of three years.
4. It is, therefore, clear that in the present case 5th November, 1963 will have to be excluded from computation and the period of limitation will have to be counted from 6th of November, 1963. If the period of three years is so counted, it is obvious that the suit which was instituted on 5th of November, 1966 was not barred by limitation. This view is supported by the decision in Jainarayan v. Vithoba, AIR 1923 Nag 143. In that case the suit was filed on 13-7-1920, relying on an acknowledgment made in writing on 13-7-1917 by the debtor. It was held that the suit was in time.
5. For these reasons the petition must be allowed. The rule is made absolute, the order passed by the trial Court dismissing plaintiffs suit is set aside and the matter is sent back to the trial Court to proceed further with the suit according to law. The opponent to pay the petitioners costs of this petition and bear his own.
6. Petition allowed.