IN THE HIGH COURT OF MADRAS
Alfred Henry Lionel Leach, C.J.
Yalpi Virupakshappa
Versus
Chowdireddi Veerabhadra Gowd and Ors.
Decided On : 16.03.1942
Limitation Act - Fresh Suit - Summary: The court held that the District Munsiff was wrong in applying Section 14 of the Limitation Act to grant permission for a fresh suit. The order allowing the withdrawal of the first suit with permission to file a fresh suit without prejudice to the question of limitation was deemed erroneous and the plaintiff was bound by the law of limitation when instituting a fresh suit. The appellant's acceptance of costs awarded in the first suit did not estop him from raising the question of limitation. As a result, the appeal was allowed, and the suit was dismissed with costs throughout.
Fact of the Case:
The 1st respondent applied for an order to remove the attachment of certain immovable properties, claiming them to be his. His application was rejected, and he filed a suit to establish his title. When the suit came on for hearing, he realized the need to amend his plaint for possession but was refused leave to do so. The District Munsiff intimated that the 1st respondent could withdraw the suit with liberty to file a fresh suit under Order 23, rule 1 of the Code of Civil Procedure.
Finding of the Court:
The District Munsiff's application of Section 14 of the Limitation Act was deemed wrong, and the order allowing the withdrawal of the first suit with permission to file a fresh suit without prejudice to the question of limitation was erroneous. The plaintiff was bound by the law of limitation when instituting a fresh suit. The appellant's acceptance of costs awarded in the first suit did not estop him from raising the question of limitation. As a result, the appeal was allowed, and the suit was dismissed with costs throughout.
Issues: The main issues were the application of Section 14 of the Limitation Act, the validity of the order allowing the withdrawal of the first suit with permission to file a fresh suit without prejudice to the question of limitation, and the appellant's acceptance of costs in the first suit.
Ratio Decidendi: The court held that the District Munsiff was wrong in applying Section 14 of the Limitation Act and that the plaintiff was bound by the law of limitation when instituting a fresh suit. The order allowing the withdrawal of the first suit with permission to file a fresh suit without prejudice to the question of limitation was deemed erroneous, and the appellant's acceptance of costs awarded in the first suit did not estop him from raising the question of limitation.
Final Decision: The appeal was allowed, and the suit was dismissed with costs throughout. The memorandum of cross-objections was dismissed with no order as to costs.
Alfred Henry Lionel Leach, C.J.
1. The appellant obtained a money decree against the 2nd and 3rd respondents in the Court of the District Munsiff of Bellary. In execution of that decree he attached certain immovable properties. The 1st respondent applied for an order removing the attachment on the ground that the properties were his. His application was rejected and consequently he instituted a suit under the provisions of Order 21, rule 63 to establish his title. When the suit came on for hearing the 1st respondent realized that he could not succeed without a prayer for possession and he applied for leave to amend his plaint in this respect. The leave to amend was refused, but the District Munsiff intimated that he would be prepared to allow the 1st respondent to withdraw his suit with liberty to file a fresh suit under Order 23, rule 1 of the Code of Civil Procedure. The 1st respondent, realising that he would be in a difficulty with regard to limitation, raised this question before the District Munsiff, but the District Munsiff considered that Section 14 of the Limitation Act would apply. Accordingly he decided to embody his opinion in his order. He did so in these words:
Plaintiff seems to entertain some apprehension on point of limitation, because this suit is for setting aside a claim and, it had to he filed within one year of the order. But I am inclined to give him the benefit of Section 14 of Limitation Act and hold that point of limitation shall not prejudice his filing of a fresh suit.
I therefore grant this petition giving permission to withdraw the suit with permission to file a fresh suit for the same reliefs prayed for here and for possession and on the same cause of action without any prejudice whatever to plaintiff on the question of limitation. Time for filing the fresh suit is one month.
The District Munsiff further directed that the 1st respondent should pay half the costs of the appellant.
2. In due course the first respondent filed a fresh suit. The appellant raised the plea of limitation, but in view of the order which has just been quoted, the District Munsiff held that the suit was within time, notwithstanding that it had been filed more than twelve months after the date of the dismissal of the claim petition. The District Munsiff also held that the appellant could not raise the question of limitation because he had accepted the order for costs passed in the previous suit. On appeal the District Judge of Bellary agreed with the District Munsiff and this appeal is from the decision of the District Judge.
3. It is manifest that the District Munsiff was wrong in holding that Section 14 of the Limitation Act applied in such a case. A Bench of this Court in Arunachellam. Chettiar v. Lakshmana Aiyar (1915) 29 M.L.J. 569 : I.L.R. 39 Mad. 936. held that Section 14 does not apply and it was pointed out there that the Bombay and Calcutta High Courts had expressed the same opinion. A Full Bench of the Allahabad High Court has expressed an opinion to the same effect. See Sadayatan Pande v. Ram Chandra Gopal I.L.R. (1934) All. 145. Arunachellam, Chettiar v. Lakshrnana Aiyar (1915) 29 M.L.J. 569 : I.L.R. 39 Mad. 936. is binding on this Court, as it was binding on the Court below. It is conclusive on the question whether the District Munsiff was right in holding that Section 14 applied.
4. The learned advocate for the 1st respondent does not dispute this, but he says that inasmuch as the District Munsiff gave the 1st respondent leave to withdraw the first suit with permission to bring a fresh suit and at the same time stated that this would be without prejudice to the 1st respondent on the question of limitation, that order cannot now be challenged. While it was an erroneous order to pass, the District Munsiff had, it is said, jurisdiction to pass it and as it was not challenged in appeal it is final. This argument ignores the provisions of rule 2 of Order 23. That rule reads as follows:
In any fresh suit instituted
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