Madras High Court
ISMAIL
K.Ganapathy - Appellant
Versus
Vaidyalingam - Respondent
Decided On : 10/22/1970
LIMITATION ACT, 1908 - SECTION 19 - ACKNOWLEDGMENT OF LIABILITY - REQUIREMENTS - MERE ACKNOWLEDGMENT OF EXECUTION OF DOCUMENT INSUFFICIENT - INTENTION TO ADMIT SUBSISTING LIABILITY MUST BE CLEAR.
Fact of the Case:
Plaintiff sued the defendant, his brother, on a promissory note executed by the defendant in consideration of the share of the business he obtained under a partition deed. The suit was filed more than three years after the date of the promissory note and was therefore barred by limitation. The plaintiff relied on a statement made by the defendant in his deposition in another suit as an acknowledgment of liability under the promissory note.
Finding of the Court:
The court held that the statement made by the defendant in his deposition did not constitute an acknowledgment of liability under Section 19 of the Limitation Act, 1908. The court found that the statement was merely an acknowledgment of the execution of the promissory note and did not indicate an intention to admit a subsisting liability.
Issues: Whether the statement made by the defendant in his deposition constituted an acknowledgment of liability under Section 19 of the Limitation Act, 1908.
Ratio Decidendi: The court held that an acknowledgment of liability under Section 19 of the Limitation Act, 1908, must be a definite and conscious acknowledgment of liability. A mere acknowledgment of the execution of a document is not sufficient. The document alleged to contain an acknowledgment must clearly contain the meaning that the party acknowledges execution of an instrument but denies his liability thereunder, or contends that the liability which he has undertaken under the document has been already fulfilled or discharged.
Final Decision: The court dismissed the plaintiff's appeal and upheld the decision of the lower court.
JUDGMENT :- The plaintiff in O. S. No. 39 of 1964 on the file of the court of the Subordinate Judge of Nagarcoil is the appellant before this court. The appellant and respondent are brothers and admittedly the respondent executed the suit promissory note, namely, Ex. A. 1 dated 9th December 1959 in favour of the appellant for Rs. 4,000 repayable with interest at 9 per cent, per annum from the date of the promissory note. Equally admittedly the promissory note was executed by the respondent in consideration of the share of the business he obtained under Ex. A. 2 dated 23-4-1135 (M. E.), a copy of the partition deed entered into between the respondent and the appellant. The suit itself was instituted on 10th October 1964. With reference to the date of promissory note, namely, 9th December 1959, certainly on 10th October 1964 the suit was barred by limitation. In order to escape from this bar of limitation, the appellant relied on the deposition of the respondent in O. S. No. 153 of 1961 on the file of the Court of the District Munsif, Nagarcoil, dated 24th July 1962, as constituting the acknowledgment of his liability under the suit promissory note. A copy of this deposition of the respondent has been marked as Ex. A 3. The learned Subordinate Judge, who tried the suit, accepted the case of the appellant and held that the statement contained in Ex. A 3 constituted an acknowledgment of liability on the part of the respondent herein and therefore the suit was in time and not barred by limitation. He accordingly decreed the suit. Against this judgment and decree, the respondent preferred an appeal to the learned District Judge of Kanyakumari at Nagarcoil, who, on 22nd June 1966 in AS. No. 63 of 1965 on his file, reversed the conclusion of the learned Subordinate Judge in this behalf and dismissed the suit. Hence the present second appeal by the plaintiff in the suit.
2. From the facts stated by me above, it will be clear that this appeal lies within a very narrow compass, the only question for decision being whether the statement relied on in the deposition of the respondent as contained in Ex. A. 3 can be said to constitute an acknowledgment under Section 19 of the Limitation Act, 1908.
3. O. S. No. 153 of 1961 on the file of the Court of the District Munsif at Nagarcoil itself was a suit instituted by the appellant's daughter against the respondent for recovery of certain sums of money. In that suit, the respondent herein who figured as the defendant gave evidence and the sentences in the deposition of the respondent on which reliance has been placed are the following two only :-
"I executed a promissory note to my brother towards the value of his share which I purchased.................. Ex. A. 5 is the promissory note by me to my brother."
Before me, the learned counsel for the appellant solely relied on these two sentences as constituting an acknowledgment under Section 19 of the Limitation Act. I am clearly of the view that these statements cannot constitute an acknowledgement of liability on the part of the respondent herein. Section 19 (1) of the Limitation Act, 1908, provides :-
"Where, before the expiration of the period prescribed 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 some person through whom he derives title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed."
The section itself in express language contemplates an acknowledgment of liability. Therefore, it is prima facie clear that what the section contemplates and requires is a definite and conscious acknowledgment of liability. The document alleged to contain an acknowledgment must clearly contain the meaning that the party acknowledges execution of an instrument but denies his liability thereunder, or contends that
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