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Meaning of sum due - The phrase sum due generally refers to an amount that is legally owed or payable by a debtor to a creditor. It includes debts that, despite being prescribed or barred by the statute of limitations, are still considered due because the debt itself remains outstanding, and only the remedy (enforcement) is barred ["RAVANNA MANA EYANNA & CO. v. THE COMMISSIONER OF INCOME TAX"]. The term is interpreted broadly in law to encompass obligations that are still owed, regardless of enforcement challenges.
Legal interpretation of debts due - The expression debts due should not be limited to debts enforceable by action; it includes debts that are still owing even if they are prescribed or have been extinguished in terms of remedy ["RAVANNA MANA EYANNA & CO. v. THE COMMISSIONER OF INCOME TAX"]. It aligns with English law where a debt remains due notwithstanding the expiry of the statute of limitations, as the debt itself persists, only the remedy is barred.
Application in financial and contractual contexts - In cases involving installments or obligations, sum due may refer to the outstanding or payable amount at a specific point, which could be replaced or extinguished by other obligations, such as accelerated payments ["BANK KERJASAMA RAKYAT (M) BERHAD vs PRISMA BUMIRAYA SDN BHD - High Court"], ["TCS CONSTRUCTION SDN BHD vs KTCC MALL SDN BHD & ANOTHER CASE - High Court"]. The term also appears in the context of principal sums adjudged in court, where it signifies the amount on which interest and further legal actions are based ["Oil And Natural Gas Corporation Limited. VS Hindustan Chemicals Company (Prop. Hindustan Engineering And Industries Ltd. ) - Gujarat"].
Related insights from other sources - The term sum due can also encompass taxes, debts to the government, or obligations arising from contractual agreements, where the amount owed is recognized as due despite disputes or procedural issues ["J. Devaraja Rao VS Income-Tax Officer, Anantapur - Andhra Pradesh"]. It is often supported by formal certificates or contractual clauses that conclusively establish the debt's existence and amount ["MAYBANK ISLAMIC BERHAD vs C & L MINERALS SDN BHD & ORS - High Court"].
Analysis and Conclusion:Sum due fundamentally signifies an amount that is legally owed or payable, encompassing debts that remain outstanding even if enforceability is barred or if the debt has been extinguished in certain legal senses. The term is interpreted broadly in law to include obligations that are still owing, whether in contractual, statutory, or financial contexts, and is often supported by contractual clauses, legal certificates, or judicial determinations ["RAVANNA MANA EYANNA & CO. v. THE COMMISSIONER OF INCOME TAX"], ["BANK KERJASAMA RAKYAT (M) BERHAD vs PRISMA BUMIRAYA SDN BHD - High Court"].
In legal contexts, terms like sum due often appear in contracts, tax notices, and debt recovery proceedings, leaving many wondering: What is the meaning of sum due? This phrase carries significant weight, determining whether a claim is enforceable or merely speculative. Understanding it can help businesses, individuals, and professionals navigate disputes effectively.
This article breaks down the legal definition, key distinctions, and real-world applications, drawing from judicial precedents. Note that this is general information based on case law and should not be taken as specific legal advice—consult a qualified attorney for your situation.
A sum due refers to a definite sum of money that is presently owing or payable (debitum in praesenti, solvendum in praesenti or in futuro) by reason of a present obligation, whether liquidated or ascertainable, and legally recoverable. It excludes contingent liabilities, unliquidated damages, or time-barred claims, as it imports a fixed, settled obligation distinct from mere liabilities payable upon uncertainty or after adjudication. Kesoram Industries And Cotton Mills VS Commissioner Of Wealth Tax (Central) , Calcutta - 1965 0 Supreme(SC) 318DIPTI KUMAR BASU VS COMMISSIONER OF WEALTH-TAX - 1975 0 Supreme(Cal) 127COMMISSIONER OF WEALTH-TAX VS LEENA MUKHERJEE - 1975 0 Supreme(Cal) 100
In essence, it's a debt enforceable without further quantification beyond ascertainment. The term due signifies something justly owed or payable, determined by context, and includes debts payable immediately or at a future date—but not contingent or unascertained sums until fixed. Harshad Shantilal Mehta VS Custodian - 1998 4 Supreme 537Raymond Synthetics LTD. VS Union Of India - 1992 0 Supreme(SC) 121
Here are the core elements that define a sum due:
Black’s Law Dictionary reinforces this: Due imports a fixed and settled obligation or liability, owing or payable whether the payment time has arrived or not. It may mean immediately enforceable or fixed but payable later, commonly restricted to presently matured claims absent qualifiers. Harshad Shantilal Mehta VS Custodian - 1998 4 Supreme 537Raymond Synthetics LTD. VS Union Of India - 1992 0 Supreme(SC) 121
In taxation, a sum due (or tax due/amount due) is an amount legally recoverable on the relevant date, such as when imposed and a demand notice is served—but excludes time-barred claims. State Of Kerala VS V. R. Kalliyanikutty - 1999 3 Supreme 451Gei Engineering Ltd VS Additional Commissioner, Commercial Tax - 2002 0 Supreme(MP) 793 For instance, income-tax liability arises on the last day of the accounting year under the charging section, even if rates are set later. Kesoram Industries And Cotton Mills VS Commissioner Of Wealth Tax (Central) , Calcutta - 1965 0 Supreme(SC) 318 Arrears of advance tax under demand notices constitute a debt until revised. Commissioner Of Wealth Tax, Calcutta VS Standara Vacuum Oil Company LTD. - 1965 0 Supreme(SC) 262
A case under the Indian Electricity Act illustrates this: The expression when such sum became first due in Section 56(2) limits recovery to sums payable after a valid bill, with no recovery beyond two years unless continuously shown as arrears. Even supplementary bills correcting errors (e.g., wrong multiplier factors) are barred beyond this period. Maharashtra State Electricity Distribution Company Limited VS Electricity Ombudsman, Mumbai - 2019 Supreme(Bom) 253
In contracts, recovery of a sum due covers liquidated sums presently recoverable, but not unliquidated damages for breach, which do not create a pecuniary obligation until court adjudication. Union Of India VS Raman Iron Foundry: Air Foam Industries Private LTD. - 1974 0 Supreme(SC) 95
For guarantees, a debt due from a guarantor arises on valid demand if the claim is live against the principal debtor, even if later time-barred against them. Syndicate Bank VS Channaveerappa Beleri - 2006 5 Supreme 115 Under debt recovery laws, it means a subsisting, legally recoverable liability from business activity, irrespective of security. State Bank Of Bikaner And Jaipur VS Ballabh Das And Company - 1999 8 Supreme 99
Real-world examples abound:- In a Sri Lankan case, the plaintiff sued to recover a balance due for goods supplied, highlighting how sum due applies post-completion of work under simple agreements. ABDUL MAJEED v. SILVA- A Malaysian Sale and Purchase Agreement dispute affirmed that upon fulfilling conditions (e.g., Clause 3.3(iv)), parties are entitled to payment of specified sums like RM4,296,000, regardless of unrelated breach claims. The court ordered payment, emphasizing contract interpretation as a whole. KASSIM MOHAMMED MAHRUF & ANOR vs PERFECT PEARL SDN BHD & ANOR- Another Sri Lankan ruling clarified that a document acknowledging borrowed sums with interest implies a promise to pay, qualifying as a sum due within prescription limits. NADAR v. FONSEKA
In construction contracts, clauses like 18 focus on recovery of sums presently payable (in praesenti), distinguishing from future debts (owing). A sum due would, therefore, mean a sum for which there is an existing obligation to pay in praesenti. B. P. Agrawal VS Chhattisgarh Rural Road Development Agency - 2018 Supreme(Chh) 670RAMESHWAR DASS DEVI DAYAL (P) LTD VS CONSOLIDATED STEELS AND ALLOYS LTD - 2006 Supreme(Del) 1803K. N. Keerthi Rao VS The General Manager, Southern Railways, Madras-3 and another. - 1999 Supreme(Mad) 84
Not every liability qualifies:
A Negotiable Instruments Act case underpins this: A cheque is presumed for discharge of a debt or other liability, but the accused must rebut at trial—reinforcing presumptions around existing obligations. RAMESHWAR DASS DEVI DAYAL (P) LTD VS CONSOLIDATED STEELS AND ALLOYS LTD - 2006 Supreme(Del) 1803
In electricity dues, principles of natural justice apply minimally; quantified sums due after opportunity suffice without procedural overkill. D. Sudheer Reddy VS Director of Social Welfare Department, Hyderabad - 2013 Supreme(AP) 816
To assess if an amount is a sum due:1. Confirm a present obligation exists.2. Verify the sum is fixed/ascertainable and legally recoverable (not time-barred/contingent).3. Check context-specific triggers (e.g., demand notice, decree).
Quantify via accounts/tax data where possible and issue formal demand to start the limitation clock. In disputes, like road maintenance claims, courts deny interest or extras if delays are attributable to the claimant. B. P. Agrawal VS Chhattisgarh Rural Road Development Agency - 2018 Supreme(Chh) 670
By grasping sum due, you can better manage obligations and defenses. For tailored guidance, seek professional legal counsel. References include core cases like Kesoram Industries And Cotton Mills VS Commissioner Of Wealth Tax (Central) , Calcutta - 1965 0 Supreme(SC) 318 for debt definitions and KASSIM MOHAMMED MAHRUF & ANOR vs PERFECT PEARL SDN BHD & ANOR for contract payments.
#SumDue #LegalDebt #ContractLaw
I, therefore, come to the conclusion that the items included in the sum of Rs. 25,199 are " debts due " within the meaning of section 10 (1) (b) of the Excess Profits Ordinance. I would, accordingly, dismiss the appeal with costs. ROSE J.-I agree. Appeal dismissed. ... A debt, though it is prescribed, can be regarded as still due; the. expression " debts due " should not be read in a limited sense as meaning debts, the payment of which can be enforced by action. ... Excess P....
The "instalments" for the remaining 12 months of the term were never "due"; they were extinguished and replaced by the obligation to pay the accelerated outstanding sum. ... The obligations in clauses (a) and (b) are predicated on the existence of "the instalment due" and a "payment schedule." These concepts have meaning only in the context of a live, ongoing Facility. ... This amount is calculated as the sum of all 24 monthly instalments, less payments received, using a specific profit rate. ... Upon t....
"Such Principal Sum"-meaning of: 40. ... We are of the opinion that the meaning assigned to the expression 'the principal sum adjudged' should continue to be assigned to "principal sum" at such other places in Section 34(1) where the expression has been used qualified by the adjective "such" that is to say, as "such principal sum". ... (2) The principal sum so adjudged is 'such principal sum' within the meaning of Section 34 of t....
from the full sum due to the plaintiff after the work was completed. ... These agreements were not drawn by a legal draftsman, and it is impossible to say whether the parties knew the meaning of the word "penalty" or the meaning of the words " fine " used in the agreements. ... THE plaintiff sued the defendant to recover a sum of Rs. 610.65, balance due to him for supplying certain goods and roofing sheets. ... - The plaintiff brought this action to recover a sum#H....
In our opinion it is impossible to argue that the liability to pay taxes legally due to the Government is an avyavaharika debt within the meaning of the texts are interpreted by the judicial decisions, some of which have been referred to above. ... According to the dictionary meaning as well as the meaning given by the various recognised translators of the texts form time to time, the expression sulka would also include a tax. ... to the Government undoubtedly stand on a higher footing than a debt due t....
borrowed and is a contract, agreement or bargain to pay money within the meaning of section 6 of the Prescription Ordinance. ... A document in which the defendant states that he has " borrowed and received in full from--, the sum of Rs. 275 of lawful money of Ceylon, having promised to pay interest at the rate of 15 per cent, per annum until the sum is paid in full" contains an implied promise to pay the sum ... It is clearly settled that to take a case out of the statute there must be an acknowledgment or a pr....
The contract sum of RM224,053,767.00 and a sum of RM5,403,962.75 being the GST have been paid in full to MPM; ii. Due to 53 days of delay in completing the Project, MPM owes KTCC a sum of RM7,950,000.00 for LAD; and iii. ... Jaks Island Circle Sdn Bhd have considered the words "due or payable" in s 30(5) CIPAA 2012 and interpreted the same literally, according to their ordinary plain meaning. [47] I make specific reference to the case of HSL Ground Engineering Sdn Bhd v. ... Civil Tech....
Let us examine the argument that the word " payment" in section 6 has only one meaning, viz., " the discharge of an obligation " and therefore there can be no payment in advance, but what really happens is that a sum of money is deposited with the creditor who is authorized to apply it as ... The plaintiff contends that by virtue of that arrangement, a sum of money sufficient to make good the interest due for four months was deposited with the mortgagee, so that he might apply it as interest fell due#HL_END....
[36] The Defendants argue that the Plaintiffs are not entitled to any further payment of the consideration sum due to the Plaintiffs' breach of their warranties under Schedule I, paragraphs ... [52] With due respect, I find this argument unacceptable as a valid reason to deny the Plaintiffs the payment they are rightfully entitled to under cl 3.3(iv) of the SPA. ... Neither the SPA nor the LOU grants the 1st and 2nd Defendants any right to withhold payment to the Plaintiffs once such payment becomes due under clause 3.....
(3) There is no evidence to show how the sum awarded is made up or that any sum is due at all. ... sum was actually borrowed and is due from the debtor to the creditor. ... They denied that any sum was due by them to the plaintiff on the note. ... It seems to me to give the material parts of section 10 no meaning, and in effect to be contrary to the, as it appears to me, clearly expressed intention of the legislature. ... THE plaintiff sued ....
There, the Division Bench held and agreed with the Learned Single Judge of this Court that the sum became due and payable after a valid bill has been sent to the consumer. In our opinion, in the latter Division Bench Judgment the issue was somewhat different. There the question arose as to what meaning has to be given to the expression "when such sum became first due" appearing in sub-section (2) of Section 56.
Recovery of such sums is a subject-matter of clause 18 according to the heading i.e. the dominant idea running fully entire clause 18 the Hon'ble Supreme Court has held that clause 18 does not lay down the substantive rights and obligation of the parties under the contract. The Hon'ble Supreme Court in Union of India Vs. Raman Iron Foundry AIR 1974 SC 1265 (Supra) has held that when there is an obligation to pay a sum of money at a future debt, it is a debt owing to when the obligation is to pay a sum of money in presenti, it is debt due. A sum due would, therefore, mean a sum for ....
Petitioners have not disputed the amount quantified and liability to pay. There is no procedural infirmity in the impugned exercise much less grave irregularity touching upon the very basis of the action. Thus, sum due is determined by affording reasonable opportunity. In the facts of these cases, nothing more was required to be done and amount quantified is the sum due from each of the colleges, who are all petitioners.
A sum due would, therefore, mean a sum for which there is an existing obligation to pay in presenti, or in other words, which is presently payable. That is the dominant idea running through the entire Clause 18. " (underlining added) Recovery of such sums is the subject-matter of clause 18 according to the heading. "this passage indicates that when there is an obligation to pay a sum of money at a future date, it is a debt owing but when the obligation is to pay a sum of money in praesenti it is a debt due.
A sum due would, therefore, mean a sum for which there is an existing obligation to pay in prasenti, or in other words, which is presently payable. Recovery of such sums is the subject-matter of Clause 18 according to the heading. "The passage indicates that when there is an obligation to pay a sum of money at a future date, it is a debt owing but when the obligation is to pay a sum of money in prasenti, it is a debt due. That is the dominant idea running through the entire Clause-18."
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