HIGH COURT OF BOMBAY
BAVDEKAR, J.
Naranbhai Chhaganbhai
Versus
Motibhai Ishwarbhai
First Appeal No.609 of 1950, from decision of Nyayadhish, Petlad Mahal, in Regular Civil Suit No.61 of 1948-49.
Decided On : 13-08-1954
LIMITATION - SUIT UPON PROMISSORY NOTE - PART PAYMENT ENDORSED BY GRANDSON OF EXECUTANT - WHETHER SAVES LIMITATION - LIMITATION ACT (1908), S.6 - GENERAL CLAUSES ACT (1897), S.6 - BARODA LIMITATION ACT (1939), S.11 - WHETHER REVIVES BARRED REMEDY.
Fact of the Case:
Plaintiff filed a suit for recovery of a sum of Rs.7,000 due upon a khata dated 15-12-1934, for Rs.9,000 signed by two persons Motibhai Ishwarbhai and Jiwabhai Javerbhai. The suit was filed on 19-10-1946. The plaintiff relied upon a part payment dated 22-10-1940, acknowledged in the handwriting of Kantilal Vithalbhai, the grandson of Jiwabhai, to save limitation. The defendants disputed the endorsement and contended that the suit was barred by limitation.
Finding of the Court:
The court found that the endorsement of part payment was proved, but held that it did not serve to save limitation because the plaintiffs suit upon the promissory note was barred by limitation before the endorsement was made by Kantilal Vithalbhai.
Issues: 1. Whether the suit was barred by limitation? 2. Whether the part payment endorsed on the promissory note saved limitation? 3. Whether the Limitation Act (1908), S.6, General Clauses Act (1897), S.6, and Baroda Limitation Act (1939), S.11 apply to implied repeals?
Ratio Decidendi: 1. The court held that the suit was barred by limitation because the period of limitation for suits upon promissory notes was three years under the Baroda Limitation Act (1939) when the suit was filed, and the plaintiffs suit was filed more than three years after the date of the promissory note. 2. The court held that the part payment endorsed on the promissory note did not save limitation because the plaintiffs suit was barred by limitation before the endorsement was made. 3. The court held that S.6 of the General Clauses Act (1897) and the corresponding provision of the Baroda General Clauses Act (1951) apply to implied repeals, and therefore the amendment of the Baroda Limitation Act (1939) which included Art.63 in the articles enumerated in S.6 did not revive the plaintiffs suit which was barred by limitation before the amendment came into force.
Final Decision: The court dismissed the plaintiffs suit as barred by limitation.
JUDGMENT : - The present appeal arises from a suit filed by the plaintiff for recovery of a sum of Rs.7,000 due upon a khata dated 15-12-1934, for Rs.9,000 signed by two persons Motibhai Ishwarbhai and Jiwabhai Javerbhai; Both the executants specifically say in the khata that they would pay the amount of Rs.9,000 on demand. The khata obviously, therefore, is a promissory note. It is not necessary to state all the defences which were taken on behalf of the representatives of Motibhai Ishwarbhai and Jiwabhai Javerbhai, for the reason that the only question in this appeal is one of limitation. It is contended on behalf of the defendants that the suit was barred by limitation.
The suit was upon a promissory note dated 15-12-1934, and was actually filed on 19-10-1946. In order to bring the suit within limitation, the plaintiff relied upon a part payment dated 22-10-1940, acknowledged in the handwriting of Kantilal Vithalbhai, the grandson of Jiwabhai. The part payment is endorsed upon the promissory note itself in the hand of Kantilal Vithalbhai. The defendants disputed this endorsement, but the learned trial Judge has found the endorsement proved. The defendants contended even so that this endorsement did not serve to save limitation, because the plaintiffs suit upon the promissory note was barred by limitation before the endorsement was made by Kantilal Vithalbhai.
It appears that when Act No.1 of 1987 S.Y. (Mudat Nibandh No.1 of 1987) of the former Baroda State was enacted, the rule of limitation in regard to promissory notes was contained in Art.63, and the period was, as in what was formerly British India, three years. The Act contained a section at that time, No.6, sub-s. (1) of which provided an enlarged period of limitation of six years, where the suit was filed upon a writing or a document and was a suit to which certain articles, including Art.47, which was for a suit for money lent, applied, but at that time Art.63 was not included in the articles enumerated in S.6(1). The Baroda Limitation Act was, however, amended from time to time. It was amended for the first time by Act No.47 of 1934, which came into force on 8-11-1934. It was amended a second time by Act No.3 of 1936, which came into force on 30-1-1936.
It is not in dispute, however, that Art.63 of the Act was not included among the articles enumerated in S.6(1) by either of these amendments. It was included among those articles by Act No.21 of 1939, which came into force on 25-5-1939. It is the contention of the defendants that before this Act came into force, the period of limitation for suits upon promissory notes was three years, with the result that there being no acknowledgment before 25-5-1939, when the Act No.21 of 1939 came into force, the plaintiffs suit upon Ex.39 regarded as a promissory note was barred by time, and his remedy was not revived by that Act which was not retrospective.
2. On the other hand, it is the contention of the plaintiff that the plaintiffs suit is not a suit upon a promissory note. The plaintiffs suit is a suit for money lent, which will be governed by Art.47, or a suit on an account stated, which would be governed by Art.54. Now, Art.54 also was not included among the articles enumerated in S.6(1) when the Act came into force originally. It was included among those articles for the first time by Act No.3 of 1936, which came into force on 30-1-1936.
It is contended on behalf of the plaintiff that the plaintiffs suit was not barred by time on that date if it is a suit on an account stated. So in any case the period of limitation for the plaintiffs suit, regarded as a suit for an account stated, was six years, and inasmuch as on 22-10-1940, Kantilal Vithalbhai, the grandson of Jiwabhai made payment of a sum of Rs.3,000 before the period of limitation was over, a fresh starting point of limitation was provided by the payment by Kantilal on that date, and the plaintiffs suit was consequently within time.
3. In the alternative, it is
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