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2025 Supreme(Telangana) 39

IN THE HIGH COURT FOR THE STATE OF TELANGANA
Laxmi Narayana Alishetty, J.
Menthula Shashidhar, S/o Satyanarayana - Petitioner
Versus
Cherukuri Padma Rao, S/o Late Ramakotaiah - Respondent
CRP.No.3448 of 2023
Decided On : 09-06-2025

Advocates:
Advocate Appeared:
For the Petitioner: Sri K.Venu Madhav
For the Respondent: Sri M.Vivekananda Reddy

The date of execution of a promissory note is excluded in computing the limitation period for legal actions, confirming that suits filed beyond the stipulated period are barred.

Headnote:(A) LIMITATION ACT - Article 35 and Section 12 - Suit for recovery of money based on promissory note - Suit was filed on 16.12.2022, beyond the three-year limitation period from the date of execution of promissory note on 15.12.2019 - Application for rejection of plaint based on limitation dismissed by trial Court - The court held that the date of execution must be excluded while computing the limitation - Hence, the suit was barred by limitation. (Paras 8, 10, 12, 13)

(B) Cause of Action - A cause of action must be disclosed for a suit to be maintainable - The assertion of no cause of action cannot be summarily adjudicated without due consideration of the facts. (Paras 9, 10)

Facts of the case:
The plaintiff filed suit against the defendant for recovery of Rs.85 lakhs, based on two Ankadas dated 15.12.2019. The defendant contended that the suit was barred by limitation and sought rejection of the plaint. The trial Court dismissed this application.

Findings of Court:
The court found that the suit was filed after the expiration of the three-year limitation period and hence, barred.

Issues: The principal issue was whether the suit was barred by limitation and if it disclosed a valid cause of action.

Ratio Decidendi: The court ruled that the date of execution must be excluded when calculating limitation under the LIMITATION ACT, thereby affirming that the plaintiff's action was beyond the statutory limit.

Result: Civil Revision Petition allowed, and the order of the trial Court was set aside.

Table of Content
1. facts of the case outline the plaintiff's claim and the defendant's grounds for application. (Para 4 , 5 , 7)
2. arguments presented by both parties regarding the application and limitation aspects. (Para 8 , 9 , 10)
3. court's observations on the limitation period calculation. (Para 12)
4. final conclusion and decision to allow the revision petition. (Para 13 , 14)

ORDER:

Laxmi Narayana Alishetty, J.

This Revision Petition is filed directed against the order dated 14.09.2022 passed in I.A.No.416 of 2023 in OS.No.309 of 2022 on the file of Principal District Judge, Warangal.

2. Heard Sri K.Venu Madhav, learned counsel for revision petitioner, and Sri M.Vivekananda Reddy, learned counsel for the respondent.

3. The petitioner is defendant and the respondent is plaintiff in the suit. For convenience, the parties will be hereinafter referred to as arrayed in the suit.

4. In nut-shell, the facts of the case, required for disposal of the present Revision Petition, are that plaintiff filed the aforementioned suit against the defendant for recovery of money on the basis of two separate Ankadas/receipts, dated 15.12.2019; that the defendant entered appearance and filed an application vide I.A.No.416 of 2023 under Order VII Rule 11 CPC to reject the plaint.

5. In the affidavit filed in support of the application, the defendant averred that the plaintiff filed the suit alleging that the defendant borrowed a sum of Rs.85 lakhs on 15.12.2019 and executed two separate Ankadas/receipts for a sum of Rs.45 lakhs and Rs.40 lakhs respectively, agreeing to repay the same with interest @ 2% per month; that a legal notice was issued on behalf of the plaintiff to the defendant on 21.10.2022, for which reply was got issued by the defendant through his counsel on 25.10.2022 denying the debt as well as the relationship between them. However, surprisingly, the suit was filed by the plaintiff on 16.12.2022. The defendant further averred that the plaintiff failed to disclose the mode of payment of suit amount and further, there is no cause of action for filing the suit and therefore, the suit is liable to be rejected.

6. A counter was filed on behalf of plaintiff denying the averments made in the application and further, contended that the suit is within the period of limitation with specified cause of action and as such, the application filed by the defendant is vague and not specific, and hence, the plaint cannot be rejected at any stretch of imagination. It was further specifically averred that the allegation of the defendant that no cause of action had arisen for filing the suit cannot be decided summarily and that it is well settled law that question of law and facts cannot be read in isolation and a party cannot be permitted to canvas beyond his/her pleadings to their convenience and as such, the application is untenable and accordingly, prayed to dismiss the application.

7. The trial Court vide impugned order dated 14.09.2022 dismissed the application with an observation that the plaintiff disclosed the cause of action for filing the suit, therefore, the plaint need not be rejected. The trial Court further observed that Ankadas were allegedly executed by the defendant on 15.12.2019 and plaint was presented on 16.12.2022 and as such, the plaint is within the limitation period of three years. Aggrieved by the said impugned order, the present Revision Petition is filed.

8. Learned counsel for petitioner/defendant submitted that in the application, the defendant has taken a specific stand that the suit is barred by limitation and no cause of action had arisen for filing the suit. He further submitted that the alleged amounts were given by the plaintiff to the defendant on 15.12.2019 and Ankadas were allegedly executed on 15.12.2019, however, the suit was filed on 16.12.2022, which is clearly barred by limitation, since the time limit for filing a suit for recovery of money based on promissory note, in the present case Ankadas, is only three years

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