M.THANIKACHALAM
S. V. Arjunaraja – Appellant
Versus
P. Vasantha – Respondent
In negotiable instrument cases, the principles related to the payment of court fees and their implications on the limitation period are highly relevant. The core legal issue involves whether the payment of deficit court fees after the expiration of the limitation period can be considered valid under the applicable provisions of the Civil Procedure Code.
Specifically, if the court grants time for the payment of court fees, such extension must be properly recorded, and the payment must be made within the period granted, with reasons recorded by the court. If the payment of deficit court fees is made after the limitation period has expired, and no valid extension of time has been granted by the court, the suit may be barred by limitation (!) (!) .
Furthermore, the provisions of Section 149 of the Civil Procedure Code empower courts to allow the payment of court fees at any stage, and upon such payment, the document or suit is deemed to have the same force as if the fee had been paid initially. However, this is contingent upon the court's proper exercise of discretion, with reasons recorded, and not on a mechanical or unauthorized extension (!) (!) (!) .
In the context of negotiable instruments, where the limitation period is strictly enforced, failure to pay the requisite court fees within the prescribed period, without valid court authorization or extension, can lead to the rejection of the plaint as time-barred. The payment of court fees after the limitation period, without a proper extension, does not revive the suit or extend the limitation period (!) (!) .
Therefore, in negotiable instrument cases, it is crucial that the plaintiff ensures that the court fee is paid within the limitation period or that a valid, properly recorded extension is obtained. Otherwise, the suit may be dismissed as barred by limitation, affecting the enforceability of the instrument.
(Civil Revision Petition filed under Article 227 of the Constitution of India as against the order dated 9.1.2004 passed in I.A.No.521 of 2003 in O.S.No.153 of 2003 by the Court of Subordinate Judge, Srivilliputhur.)
The defendant, who attempted before the trial Court by filing I.A.No.521 of 2003 in O.S.No.153 of 2003, invoking the grounds available under Order VII Rule 11(c) C.P.C., to reject the plaint, failed and the result is this revision.
2. The respondent herein, as plaintiff, has filed a suit for recovery of a sum of Rs.4,29,166.50, with interest on Rs.2,50,000/-, at the rate of 24% per annum, from the date of plaint, till the date of realisation, on the basis of a promissory note dated 30.12.1999, alleging that the defendant/revision petitioner had borrowed the said amount, for his family expenses and business, promising to repay the same, on demand, failed to do so and therefore, he should be directed to pay the said amount.
3. The revision petitioner/defendant, in his written statement, has stated that the suit promissory note is a forged, fabricated and concocted by the plaintiff's husband and this vexatious suit is filed, in her name, thereby denying, not only
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