Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2019 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 725 - HC - Indian LawsDismissal of the summary suit seeking recovery - time limitation - Whether the suit for recovery is filed within limitation in the light of the fact that the four cheques acknowledging the defendant's liability were dishonoured? - Held that:- The trial Court dismissed the suit as being barred by limitation. On appeal by the plaintiff it was urged that the amount borrowed on 12/07/1939 having been acknowledged and partly paid by virtue of cheques dated 25/09/1942 and 10/11/1944 the suit as filed on 08/11/1947 was within limitation. Said contention was not accepted by the Division Bench holding that the subsequent dishonour of cheques would not amount to acknowledgment of liability and same could not be regarded as part payment within the meaning of the provisions of Section 20 of the Limitation Act, 1908. It was thus held that the suit having been filed beyond the period of limitation which commenced after 12/07/1939 was thus barred by limitation. The Court then considered the alternate claim as made based on the four cheques issued by the defendant and held that the plaintiff was entitled for the amounts mentioned in the cheques that were dishonoured as that claim was within limitation. The Court thus did not grant any relief as regards the principal claim but granted relief as regards the amount as shown under the dishonoured cheques - the finding recorded by the trial Court that issuance of four cheques would not result in extending the period of limitation in the light of provisions of Section 18 of the said Act cannot be faulted. Demand of interest - Held that:- As the plaintiff's claim based on the invoices has been found to be barred by limitation, the decreetal amount cannot carry interest at the rate of 24% per annum. The four cheques having been issued pursuant to the plaintiff's legal notice, interest at the rate of 10% per annum in the light of the proviso to Section 34 of the Code of Civil Procedure, 1908 would serve the ends of justice. Appeal allowed in part.
|