1. The plaintiff, a Banking Company, is the appellant. The defendant borrowed money from the plaintiff from time to time. The suit which was for the balance due was filed more than 3 years after the date of the last transaction. The plaintiff's case was that the amount was due under a mutual, open and current account governed by Art.85 of the Indian Limitation Act. The defendant contended inter alia that the suit

was barred by limitation. The other contentions of the defendant are not material for the purpose of this second appeal. The trial court held that Art.85 was applicable and the plaintiff was given a decree as prayed for. On appeal it was held that the transaction would not fall under Art.85 and that the suit was barred by limitation. The appeal was therefore allowed, dismissing the suit.

2. The only point arising for decision is whether Art.85 of the Limitation Act is applicable. The last item of borrowing was on 31st March 1950 and the suit was instituted on 14-8-1953. If Art.85 is applicable the suit is within time, as the plaint was presented within 3 years of the last day of 1950.

3. In deciding the nature of the transaction it is useful to refer to the circu