JUDGMENT

Vinod Goel, J. Challenge in this appeal is the impugned judgment and decree dated 16.05.2016 passed by the Court of learned Additional District Judge (North-East)-01, Karkardooma Courts, Delhi (in short `learned ADJ') by which the civil suit No.114/2016 of the appellants/plaintiffs was dismissed against both the respondents/defendants.

2. The brief facts for disposal of this appeal are that the appellants, who are husband and wife filed a civil suit for recovery of Rs.33,35,000/- against the respondents, who are also husband and wife. It is alleged by the appellants in their plaint that on the request of the respondents they had advanced them a friendly loan of more than Rs.20,00,000/- on interest @ 24% p.a. The loan was disbursed by the appellants to the respondents from time to time. The appellants have not disclosed any date of disbursement of the amount of loan to the respondents. It is also alleged that the respondents were making the part payment of the loan amount to the appellants from time to time and at one point of time the outstanding amount was Rs.22,50,000/- and lastly the principal sum of Rs.15,00,000/- was outstanding against the respondents.

3. It is further alleged by the appellants that on 06.02.2009, 06.04.2010 and 13.12.2015, the respondents had paid them cash amount of Rs.45,000/-, Rs.1 lacs and Rs.3 lacs respectively. It is further alleged that the respondents have also handed over them a cheque of Rs.3 lacs dated 25.12.2015 from the account of respondent No.2 which was encashed by them. The appellants further alleged that total sum of Rs.33,35,000/- which includes the principal sum of Rs.15,00,000/- and interest Rs.18,35,000/-, is outstanding against the respondents.

4. The appellants further alleged that the respondents have acknowledged the loan amount under the signature of respondent No.1 and by issuing the cheque from the account of respondent No.2. The appellants had issued a notice dated 16.01.2016 to the respondents asking them to make the payment of outstanding amount of Rs.33,35,000/- but of no avail.

5. In their written statements, the respondents have denied the alleged loan transactions. They have also denied handwritten receipts-cum-details of the payment. The respondents have also taken the objections regarding lack of jurisdiction of the court. They have pleaded that the suit was barred by law of limitation.

6. On merits, it is pleaded by the respondents that there was a business relationship between the appellant No.1 and respondent No.1 which was settled finally and they made the payment of Rs.3 lacs by cash on 13.12.2015 and further Rs.3 lacs by cheque dated 25.12.2015 in full and final settlement pertaining to the business transactions.

7. Learned ADJ found that admittedly the receipts filed by the appellants mentioned the date of transactions of loan from time to time starts from 06.11.2003 till 25.02.2009. As per these receipts, the last payment of Rs.1 lac was made on 25.02.2009 leaving a balance outstanding amount of Rs.15,00,000/-. The respondents have allegedly signed the balance confirmation of Rs.15,00,000/- on 25.02.2009 but the respondents have denied having executed these receipts and documents. The learned ADJ observed even if for the sake of arguments, it is presumed that respondent No.1 has acknowledged outstanding balance amount of Rs.15 lacs, this being the last acknowledgment allegedly executed on 25.02.2009 and the suit having been filed on 16.02.2016 is barred by time.

8. Here it would be profitable to refer Section 18 of the Limitation Act, 1973 which reads as under:

"Section 18 Effect of acknowledgment in writing.-

(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 titl