High Court Of Allahabad
T. S. Misra, J.
Roop Kishore Seth : Appellant
Versus
State Of U. P. : Respondent
Second C. A. No. 173 of 1972 connected with Second C. A. No. 186 of 1972
Decided on: Jul 29, 1977
LIMITATION ACT - ARTICLE 112 - SUIT BY STATE GOVERNMENT - PERIOD OF LIMITATION - COMPUTATION - DEVOLUTION OF PROPERTY ON GOVERNMENT UNDER SECTION 29 OF HINDU SUCCESSION ACT - WHETHER ARTICLE 112 APPLIES.
Fact of the Case:
The plaintiff, the State of Uttar Pradesh, filed two suits against the defendant, Roop Kishore Seth, for the recovery of two loans advanced by one Shanti Swarup, who had died without leaving any heir to succeed to his property. The suits were filed more than three years after the dates of the loans, but within thirty years. The trial court and the first appellate court decreed the suits, holding that Article 112 of the Limitation Act, 1963, which provides a limitation period of thirty years for suits by the Government, applied. The defendant appealed to the High Court.
Finding of the Court:
The High Court held that Article 112 of the Limitation Act, 1963, applied to the suits and that they were, therefore, within limitation. The court held that where the period of limitation had not expired on the date of the demise of the private person, that is on the date of the devolution of his property by escheat on the Government under section 29 of the Hindu Succession Act, 1956, the Government, in my view, will be entitled to avail itself of the provisions of Article 112 of the Limitation Act.
Issues: Whether Article 112 of the Limitation Act, 1963, applied to the suits filed by the State Government for the recovery of loans advanced by a private person who had died without leaving any heir to succeed to his property.
Ratio Decidendi: The court held that Article 112 of the Limitation Act, 1963, applies to suits filed by the Government for the recovery of loans advanced by a private person who had died without leaving any heir to succeed to his property, provided that the period of limitation had not expired on the date of the demise of the private person.
Final Decision: The appeals were dismissed.
T. S. Misra, J.
1. ROOP Krishna Seth borrowed a sum of Rs. 3000/- from one Shanti Swarup on 1st September, 1968 agreeing to re-pay the same on demand with interest at 6 per cent, per annum and executed a pronote for the same. ROOP Kishore Seth took a further loan of Rs. 3000/- from the said Shanti Swarup on 2nd September, 1958 agreeing to pay the same on demand with interest at 6 per cent, per annum and executed a pronote for the same. Shanti Swarup died on 16th January, 1960. He was not survived by any heir to succeed to his property hence in view of the provisions of section 29 of the Hindu Succession Act his property devolved on the Government. ROOP Kishore Seth had failed to repay the said two debts to Shanti Swarup. The State of U. P., therefore, filed a suit No. 59 of 1969 for the recovery of the loan advanced by Shanti Swarup on 1st September. 1968 with interest therein. That suit was decreed by the trial court. Against that decision ROOP Kishore Seth filed First Appeal No. 23 of 1971 which was also dismissed. He has now preferred Second Appeal No. 173 of 1972 from that decree.
2. SIMILARLY the State of U. P. filed the Suit No. 58 of 1969 against Roop Kishore Seth for the recovery of the loan dated 2nd September, 1968 together with interest thereon. That suit was also decreed by the trial court. Roop Kishore filed an appeal, First Appeal No. 24 of 1971 from that decree which was also dismissed. He has preferred Second Appeal No. 186 of 1972 against that decision. Since both these second Appeals Nos. 173 of 1972 and 186 of 1972 raised common question of law they are being disposed of by one judgment.
The learned counsel for the appellant urged only one point before me in both the appeals, namely, the suit was barred by time and the courts below have erred in holding otherwise. According to the appellant the limitation for the suit was to be computed under Article 35 of the Indian Limitation Act, 1963 which corresponds to Article 73 of the Old Limitation Act and if once the time starts running no subsequent inability or disability to institute a suit could stop it as provided by Section 9 of the Limitation Act. It was submitted that under Article 35 of the Limitation Act, 1963 or under Article 73 of the Old Limitation Act the time for filing a suit on a promissory note runs from the date of the promissory note, namely, in the instant cases 1st September 1958 and 2nd September, 1958 and the period of limitation prescribed for such a suit is three years. Hence the aforesaid limitation for filing two suits expired on 1st or 2nd September, i.e. the limitation for filing Suit No. 59 of 59 expired on 1st September, 1961 and the limitation for filing Suit No. 58 of 1959 expired on 2nd September, 1961. As both these suits were filed on 6th October, 1961 they were barred by time.
3. FOR the State of U. P. it was urged that the limitation for filing the suit should be computed in accordance with Art. 112 of the Limitation Act 1963 under which the period of limitation for the suit is thirty years. It may be mentioned here that under the old Limitation Act a suit by the Government could be filed within a period of sixty years as provided by Article 149 of that Act. Both the courts below have concurrently held that Article 112 of the Limitation Act of 1963 governed the said two suits and as the limitation prescribed under Article 112 is thirty years both the suits were filed within limitation.
4. THE short question involved in these appeals, therefore is whether Article 112 of the Limitation Act of 1963 would govern the two suis out of which these appeals have arisen or the provisions of Article 35 of the Act would apply. THE said two Articles of the Limitation Act read as follows :
Both the suits were filed for recovery of loans and were based on two pronotes in question. Had Shanti Swarup filed the said suits Article 35 would undoubtedly have applied and the period of limitation for such suits would have been three years. The
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