High Court Of Himachal Pradesh
R.L.KHURANA
THE KANGRA DISTRICT WHOLE SALE CO-OPERATIVE SUPPLIES AND MARKETING SOCIETY LIMITED - Appellant
Versus
BUTA MAL SOHAN LAL - Respondent
Second Appeal No. 465 of 1989
Decided On : 01/10/1996
LIMITATION ACT, 1963 - SECTION 19 - ACKNOWLEDGMENT OF PAYMENT - ESSENTIAL CONDITIONS - PAYMENT WITHIN PRESCRIBED PERIOD AND ACKNOWLEDGMENT IN WRITING - INTERPRETATION.
Fact of the Case:
A Co-operative Society filed a suit for recovery of Rs. 3,912 from the defendant, alleging that the defendant purchased ghee on credit and made part payments from time to time, including a payment of Rs. 100 in November 1980. The defendant denied the purchase, part payments, and specifically denied paying Rs. 100 in November 1980. The trial court decreed the suit, but the first appellate court allowed the defendant's appeal, holding that the suit was barred by limitation.
Finding of the Court:
The High Court held that the suit was barred by limitation under Article 14 of the Limitation Act, 1963, as the period of limitation for recovery of the price of goods sold and delivered without a fixed credit period is three years from the date of delivery. The court found that the plaintiff failed to prove an acknowledgment of part payment by the defendant in writing, as required under Section 19 of the Limitation Act, 1963, to extend the limitation period.
Issues: Whether the suit was barred by limitation under Article 14 of the Limitation Act, 1963.
Ratio Decidendi: The court held that Section 19 of the Limitation Act, 1963 requires two essential conditions to extend the limitation period: (1) payment must be made within the prescribed period of limitation; and (2) such payment must be acknowledged by some form of writing either in the handwriting of the payer himself or signed by him. The court found that the plaintiff failed to prove that the defendant made the part payment of Rs. 100 in November 1980 and that there was no written acknowledgment of such payment by the defendant. Therefore, the court held that the suit was barred by limitation.
Final Decision: The High Court dismissed the plaintiff's appeal, leaving the parties to bear their own costs.
R. L. Khurana, J.-This appeal has been directed by the plaintiff against the judgment and decree dated 14-8-1989 of the Additional District Judge (1) Kangra, at Dharamshala whereby the judgment and decree dated 25 11-1985 of the Senior Sub-Judge, Kangra at Dharamshala was set aside and the suit of the plaintiff was dismissed.
2. The plaintiff is a Co-operative Society. It filed a suit for recovery of Rs. 3,912 (Rs. 3,497 on account of principal and Rs. 385 on account of interest from November, 1980 to August 31, 1982 at the rate of 6% per annum and Rs. 30 on account of notice charges) According to the plaintiff, the defendant purchased ghee on credit. The plaintiff is maintaining regular account in which all the payments made by the defendant from time to time are being entered In the month of June 1978, a sum of Rs. 3,597 was due from the defendant, A notice dated 25-12-1978 was served upon the defendant calling upon him to make the payment of outstanding amount. The defendant in November 198u paid a sum of Rs 100 thereby leaving a balance of Rs. 3,497. The said amount has not been paid by the defendant inspite of repeated demands and registered notice. The plaintiff is entitled to interest on the outstanding amount at the rate of 6% per annum as also a sum of Rs. 30 towards notice charges.
3. The defendant resisted the suit. He denied having purchased ghee from the plaintiff or having made part payment from time to time towards the costs of such ghee. The defendant specifically denied having paid a sum of Rs 100 in November 1980. An objection, inter alia, that the suit is barred by time was also raised.
4. On the pleadings of the parties, the trial Court framed as many as 8 issues. The trial Court came to the conclusion that ghee was purchased by the defendant on credit from the plaintiff Part payments were made by the defendant from time to time and last of such part payment of Rs. 100 was made on 3-11-1980 The suit was found to be within time. Vide judgment and decree dated 25 11-1985, the suit of the plaintiff for a sum of Rs 3,912 was decreed with costs
5. The defendant carried an appeal against the judgment and decree of the trial Court before the Additional District Judge (!) Kangra at Dharamshala The said appeal was allowed vide judgment and decree dated 14-8-1989 and the judgment and decree passed by the trial Court was set aside, The first appellate Court while allowing the appeal came to the conclusion that the suit of the plaintiff was barred by time,
6. The present second appeal was admitted on the short question of law whether Ex P-7 and P-8 would amount to an acknowledgement to extend period of limitation.
7. I have heard the learned Counsel for the parties and have gone through the record of the case.
8. There is no dispute that the present suit is governed by Article 14 of the Limitation Act. Under the said Article, the period of limitation for a suit for recovery of price of goods sold and delivered, where no fixed period of credit is agreed upon, is three years from the date of the delivery of the goods
9. As per plaintiffs case, 50 tins of ghee were sold to the defendant on credit on 19-44978 vide Ex. P-10 for a sum of Rs. 7,597. A sum of Rs 4,100 is alleged to have been paid by the defendant in three instalments. The last of the instalment being of Rs-100 was made on 3-11-1980. As per Article 14 taking the starting point of limitation from the date of sale and delivery of ghee, that is, 19-4-1978, the present suit filed on 510 1982, on the fact of it, is barred by time.
10. The case of the plaintiff is that the period of limitation prescribed under Article 14, Limitation Act, 1963 stood extended under section 19, Limitation Act, 1963 in view of Ex P-7 and Ex. P-8 whereby the defendant made part payment of Rs 100 and had acknowledged such part payment. The defendant has disputed part payment of Rs. 100 having made on 3-11-1980 and the acknowledgement thereof vide Ex P 8,
11. Section 19, Limitation Act, 1963
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