SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1959 Supreme(Pat) 47

PATNA HIGH COURT
Shib Chandra Prasad, J.
Johari Lal
Versus
Bihar State Co Operative Bank Ltd.
Appeal From Appellate Decree No. 555 of 1956 ;
Decided On : MARCH 19, 1959

Article 62 of the Limitation Act is to be strictly construed and should only be applied in cases where there is clear proof that the defendant received the money for the plaintiffs' use.

Headnote:

LIMITATION ACT - ARTICLE 62 - APPLICABILITY - MONEY RECEIVED BY DEFENDANT FOR PLAINTIFF'S USE - STRICT CONSTRUCTION - ARTICLE 120 - APPLICABLE TO CASE WHERE DEFENDANT RECEIVED EXCESS AMOUNT AS PRICE OF SALT FROM PLAINTIFF.

Fact of the Case:

Plaintiffs ordered 900 bags of salt from defendant at Rs. 6-8-6 per bag. Defendant supplied the salt in three consignments and charged Rs. 7-2-0 per bag. Plaintiffs paid the excess amount under protest and later sued for refund. The trial court decreed the suit, but the appellate court dismissed it as barred by limitation under Article 62 of the Limitation Act.

Finding of the Court:

The court held that Article 62 of the Limitation Act was not applicable to the case. The court found that the defendant had not received the excess amount for the plaintiffs' use, but had received it as his own. The court also found that the plaintiffs had not intended the excess amount to remain their money in the hands of the defendant. Therefore, the court held that Article 120 of the Limitation Act, which has a longer limitation period, was applicable to the case.

Issues: Whether Article 62 of the Limitation Act was applicable to the case.

Ratio Decidendi: The court held that Article 62 of the Limitation Act is to be strictly construed and should only be applied in cases where there is clear proof that the defendant received the money for the plaintiffs' use. In this case, the court found that the defendant had not received the excess amount for the plaintiffs' use, but had received it as his own. Therefore, the court held that Article 62 was not applicable.

Final Decision: The court allowed the appeal, set aside the judgment and decree of the appellate court, and restored the judgment and decree of the trial court with a modification that the plaintiffs were entitled to a decree for the amount claimed by them, deducting Rs. 50.00 which they had claimed as cost of journey etc. incurred by them in connection with the settlement etc. of the dispute.

Judgment

Shib Chandra Prasad, J.

1. The plaintiffs are the appellants. They have appealed against the judgment of the District Judge of Purnea reversing a decision of the Munsif of Kishanganj in a suit filed by the plaintiffs-appellants for realisation of Rs. 594-6-0 from defendant No. 1, the Bihar State Co-operative Bank, Ltd.

2. The plaintiffs case was that plaintiff No. 1 was the proprieor of the firm plaintiff No. 2. The plaintiffs had ordered 900 bags of salt to be supplied by defendant No. 1, the agreed rate between the parties being Rs. 6-8-6 per bag of 2 maunds, This agreement was arrived at some time in April or May, 1950. Defendant No. 1 supplied the commodity in three consignments and for realisation of the price, railway receipts were sent to the plaintiffs through the Central Bank of India, Kishanganj Branch. The three consignments had been rent under invoice Nos. 4980. dated 13-11-1950, 5345, dated 13-12-1950, and 5390, dated 19-12-1950.

The railway receipts were dated 10-11-1950, 11-12-1950 and 16-12-1950. It may also be mentioned that the plaintiffs had paid Rs. 1,200.00 in advance. The plaintiffs contended that when the railway receipts were made over to them by the Central Bank of India it was found by the plaintiffs that defendant No. 1 had charged Rs. 7-2-0 per bag instead of Rs. 6-8-6 as agreed between the parties. There was a large amount of correspondence between the parties on this point. Ultimately the defendant denied his liability for any excess charge. The plaintiffs alleged, also, that on 27-8-1954, the defendant had agreed to pay the amount under claim.

3. In the written statement which was filed by defendant No. 1, the contesting party, it was alleged that the price agreed upon was never Rs. 6-8-6, but it was Rs. 6-13-6 per bas plus annas 0-4-6 per bag as the commission of the defendant according to the order of defendant No. 2, the State Government, and, therefore, the price charged by defendant No. 1 at Rs. 7-2-0 per bag was correct. Defendant No. 1 also denied the allegation made by the plaintiffs that it had agreed on 27-8-1954, to pay the amount under claim.

4. It was also contended by defendant No. 1 that the claim of the plaintiffs was barred by limitation because Article 62 of the Limitation Act applied and the suit having been brought more than three years after the money was received by the defendant, the plaintiffs claim could not be entertained.

5. Defendant No. 2, the State of Bihar, filed another written statement contending that it had no concern either with defendant No. 1 or with the transaction in question.

6. The learned Munsif found that the agreement between the parties was that the salt was to be supplied by defendant No. 1 to the plaintiffs at the rate of Rs. 6-8-6 and not Rs. 7-2-0 per bag as alleged by the defendant, and, therefore, the plaintiffs were entitled to realise the excess amount paid by them to the defendant No. 1. On the point of limitation the learned Munsif was of the view that it was Article 120 of the Indian Limitation Act and not Article 62 nor Article 96 of the Act which applied, and, therefore, the suit was not barred by limi-tation. As regards defendant No. 2 the learned Munsif held that it had no concern with the transaction jn question and, therefore, that defendant was not liable for any amount. Accordingly, the learned Munsif passed a decree in favour of the plaintiffs against the defendant No. 1.

7. It may be mentioned that the claim laid by the plaintiffs was as follows : Rs. 534-6-0 representing the excess amount paid, Rs. 10.00 as cost of notice and Rs. 50.00 as cost of railway journey etc. undertaken by the plaintiffs who came over to Patna to discuss the matter with defendant No. 1. It appears that the learned Munsif decreed the suit in full. As against defendant No. 2 it was dismissed.

8. The learned District Judge agreed with the Munsif on the question of the rate contracted bet-ween the parties, that is to say. Rs. 6-8-6 pies per bag and he























































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top