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

1962 Supreme(Ker) 76

Judges : T.C.RAGHAVAN
Sankaran - Appellant
Versus
Kumaran - Respondent
Case No : C. R. P. No. 1159 of 1960
Decided On : 03/14/1962
Advocates Appeared :
T. S. Krishnamoorthi Iyer; K. Subramania Iyer; G. Rajasekhara Menon; For Appellant T. S. Venkiteswara Iyer; R. C. Plappilli; For Respondent

The application under S.8 of Act XXXI of 1958 should be treated as a suit, and the Articles of the Limitation Act applying to suits should be applied to this proceeding. The defences available to the debtor, including the plea of limitation, should be considered in such proceedings.

Headnote:

Limitation - Civil Revision Petition - Kerala Act XXXI of 1958 - S.4, S.8 - Indian Limitation Act - The court held that the application under S.8 of Act XXXI of 1958 should be treated as a suit and the Articles of the Limitation Act applying to suits should be applied to this proceeding as well. The court also considered the defences available to the debtor, including the plea of limitation, and concluded that the claim was barred by limitation.

Fact of the Case:

The respondent executed a promissory note in favor of the petitioner. The petitioner filed a petition under S.4 and S.8 of Kerala Act XXXI of 1958 for fixing the instalments payable under the Act and for an executable order for the recovery of such instalments. The respondent-debtor claimed that the debt was barred by limitation, which was accepted by both the lower courts. The petitioner creditor questions in revision the legality of that order.

Finding of the Court:

The court held that the application under S.8 of Act XXXI of 1958 should be treated as a suit and the Articles of the Limitation Act applying to suits should be applied to this proceeding as well. The court also considered the defences available to the debtor, including the plea of limitation, and concluded that the claim was barred by limitation.

Issues: The issues involved the interpretation of the Limitation Act in relation to the application under S.8 of Act XXXI of 1958 and the availability of defences, including the plea of limitation, to the debtor.

Ratio Decidendi: The court considered that the application under S.8 should be treated as a suit and the Articles of the Limitation Act applying to suits should be applied to this proceeding. The court also emphasized that the defences available to the debtor, including the plea of limitation, should be considered in such proceedings.

Final Decision: The Civil Revision Petition was dismissed, and both parties were directed to bear their respective costs throughout.

Judgment :-

1. The facts that led to the Civil Revision Petition may be briefly stated. The respondent executed a promissory note on 10th November 1955 in favour of the petitioner. No amount was paid towards the debt; and ultimately on 7th July 1959 the petitioner filed A.R.P. No. 31 of 1959 before the primary court under S.4 and 8 of Kerala Act XXXI of 1958, for fixing the instalments payable under the Act and for an executable order for the recovery of such instalments. The respondent-debtor claimed that the debt was barred by limitation, which was accepted by both the lower courts. The petitioner creditor questions in revision the legality of that order. Mr. Krishnamurthy Iyer on behalf of the petitioner contends firstly, that there is no provision in the Limitation Act which applies to an application under S.8 of Act XXXI of 1958, and secondly, that even if a suit on the promissory note is barred, it is only the remedy by way of suit that is barred and not the right, and if the right can be enforced in any other manner the law does not prohibit the same.

2. The Act does not appear to prohibit generally the application of the law of limitation under the Indian Limitation Act to proceedings under the Act. In some cases, for example Secs. 21 and 22, some variations are made. It will be interesting to note in this connection S.3 of the Act. Subsection 1 of S.3 enacts that no application for execution of a decree in respect of a debt shall be made against any agriculturist in any court before the expiry of six months from the commencement of the Act. Sub-s. 2 of the same section provides that where a creditor files a suit for recovery of a debt before the expiry of six months from the commencement of the Act or after the agriculturist has paid or deposited the sums and instalments specified in S.4 and during the period when he is so entitled to pay, the court shall in decreeing the suit direct the plaintiff to bear his own costs and to pay the costs of the defendant who is an agriculturist, except in cases where the claim would have been barred by limitation had no such suit been filed or when a debt is jointly due from an agriculturist and a non-agriculturist. This section provides sufficient indication to gather the intention of the legislature. Sub-section 1 bars only applications for execution of decrees. Regarding suits there is no such bar under sub-section 2. As a matter of fact sub-section 2 contemplates the filing of suits. The only restriction is that if suits are filed before the expiry of six months from the commencement of the Act or after the agriculturist has paid or deposited the sums and instalments specified in S.4 and during the period when he is so entitled to pay, then the court shall in decreeing the suit direct the plaintiff to bear his own costs and to pay the costs of the defendant. Even for this there is an exception provided and that is in cases where the claim would have been barred by limitation had no such suit been filed or when a debt is jointly due from an agriculturist and a non-agriculturist. This exception makes the position clear beyond doubt that in a case where the claim would have been barred had no suit been filed and if a suit be filed in such a case, the powers of the court are not in any way restricted to grant a decree with costs.

3. But the first contention of Mr. Krishnamurthy Iyer is that there is no provision in the Limitation Act for such applications as contemplated by S.8 of Act XXXI of 1958 and therefore, according to him, for an application under S.8 there is no limitation at all. For this the answer on the side of the respondent is that the application under S.8 is in effect a suit and the order passed in such proceeding is an executable decree of a Civil Court. The respondent's learned advocate invites my attention to the several provisions of S.8 dealing with the payment of court fee, the applicability of the provisions of the Code of Civil Procedure, the executability of t





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