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1963 Supreme(Ori) 57

HIGH COURT OF ORISSA
R. L. Narasimham, C. J. And R. K. Das, J.
SHYAM SUNDAR MISRA - Appellant
Versus
MUNICIPAL CHAIRMAN - Respondent
First Appeal 55  Of  1961
Decided On : JULY 31, 1963

Advocates Appeared:
B.K.PAL, N.V.RAMDAS

Limitation for a suit for a declaration that the order of dismissal passed on a public servant is wrongful and for recovery of arrears of salary etc. due to him, runs from the date of dismissal.

Headnote:

LIMITATION - WRONGFUL DISMISSAL - SUIT FOR DECLARATION AND ARREARS OF SALARY - LIMITATION RUNS FROM DATE OF DISMISSAL - OFFER TO PAY AFTER LIMITATION - NOT A PROMISE UNDER SECTION 25 (3) OF THE CONTRACT ACT.

Fact of the Case:

The plaintiff, an accountant in the Pariakimedi Municipality, was suspended on 5-1-1951 and dismissed from service on 1-4-51. He filed an appeal to Government against the order of dismissal, which was dismissed on 1-3-56. In the meantime, he filed a petition under Article 226 of the Constitution in the High Court, which set aside the order of dismissal on 11-7-1957. The Municipality offered to pay the plaintiff a sum of Rs. 2499.37 np. in full satisfaction of all his claims, which he rejected and filed a suit for arrears of salary and other emoluments from the date of his suspension till the date of his superannuation.

Finding of the Court:

The court held that the suit was barred by limitation. Limitation would run from the date of dismissal, and it would expire within three years from that date. The pendency of the appeal or the filing of the writ application under Article 226 would not save limitation. The offer made by the Municipality after the expiry of the period of limitation was not a promise under Section 25 (3) of the Contract Act, as it was not accepted by the plaintiff.

Issues: 1. Whether limitation would run from the date of the judgment in the writ petition setting aside the order of dismissal? 2. Whether the offer made by the Municipality in its letter agreeing to pay a certain sum in full satisfaction of the plaintiff's claim would furnish a fresh starting point for limitation under Section 25 (3) of the Contract Act?

Ratio Decidendi: 1. Limitation for a suit for a declaration that the order of dismissal passed on a public servant is wrongful and for recovery of arrears of salary etc. due to him, runs from the date of dismissal. 2. An offer to pay a debt which would otherwise have been barred by limitation, must be accepted by the other side to become a promise within the meaning of the Contract Act. A conditional offer cannot bind a party unless it is accepted by the other side.

Final Decision: The appeal was dismissed, but in the circumstances, both parties were directed to bear their own costs.

NARASIMHAM, C. J.

( 1 ) THIS is a plaintiffs appeal against the judgment of the Subordinate Judge of berhampur dismissing nis suit tor arrears of salary against the Pariakimedi municipality on the sole ground that the suit was barred by limitation.

( 2 ) THE plaintiff was an accountant in the Pariaki-medi Municipality. He was suspended on 5-1-1951 ana dismissed from service on 1-4-51. He tiled an appeal to Government against that order of dismissal, but that appeal was dismissed on 1-3-56 (see Ext. H ). In the meantime sometime in the year 1955 he fiied a petition uncier Article 226 of the Constitution in the High Court (see Ext. 1) O. J. C. 286/55 which was disposed of by a Bench of this Court on 11-7-1957 (reported in air 1957 Orissa 222 snyam Sundar Misra v. State of Orissa ). The Bench held that the order of dismissal passed by the Municipality was in contravention of the Rules regarding the conditions or service of Municipal servants and hence set it aside. I hereafter there was some correspondence and negotiation Between the appellant plaintiff and the Municipality for payment of arrear salary and other emoluments due to Sim till the date of his superannuation namely 7-7-54. ine Municipality by its letter, Ext. 6 dated 18-6-60 informed the appellant that a net amount of Rs. 2499. 37 Np. was payable to. him in full satisfaction of all his claims against the municipality and he was asked to accept the said sum within 10 days from the receipt of notice. instead or accepting this offer the appellant filed the present suit under appeal on 11-/-60 claiming arrears of salary and other emoluments from the date of his suspension namely 7-1-51 till the date of his superannuation, namely Y-/-M, together with interest etc. amounting in an to RS. 6995. 50 Np.

( 3 ) THE Municipality's main defence was one or limitation which was accepted by the lower court.

( 4 ) TWO points were pressed by Mr. Ramdas on behalf of the appellants :--i) Limitation would run against the appellant any from the date of the judgment in 0. J. C. No. 28and/1955, viz. from 11-7-57 setting aside thel order of dismissal and as the suit was brought within three years from that date it was within time. ii) In any case, the offer made by the Municipality in its letter Ext. 6 dated 18-6-60 agreeing to pay Rs. 2499. 37 np. in full satisfaction of the appellant's claim would furnish a fresh starting point for limitation under section 25 (3) of the Contract Act. in my opinion, neither or these contentions would prevail.

( 5 ) WHEN the appellant was dismissed by the Municipality on 1-4-51 Were accrued to him the right to bring a suit for a declaration that the dismissal was unlawful and for other consequential reliefs such as pay and otner emoluments due to him. Hence ordinarily limitation would run from the date of dismissal and it would expire within three years from that date. It is now well settled that in a suit for a declaration Wat the order of dismissal passed on a public servant is wrongful and for recovery or arrears of salary etc. due to him, the correct Article to be applied is article 102 of the Limitation Act (see Punjab Province v. Tara Chand, AIR 1947 FC 23 which nas been followed in Madhav Laxman Vaikunthe) v. State of Mysore, AIR 1962 SC 8. 5a. It is true that if the effect of filing an appeal was to suspend the operation of the order of dismissal either by virtue of any special provision in the Orissa municipal Act or in consequence of the passing of a stay order by the appellate authority, limitation may be saved until the appeal is disposed of as pointed out in sita Ram v-Municipal Beard, Kanpur, AIR 1958 SC 1036. But here our attention has not been drawn to any provision in the Orissa Municipal Act which says that as soon as an appeal is filed by the Municipal servant the order of dismissal is held in abeyance. The plaintiff also did not state that the appellate authority stayed the operation of the order of dismissal. Similarly though the writ








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