Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Indian Limitation Act Suspension of limitation in cases not covered by any specific provision of the Act 1908 Limitation |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Limitation-Suspension of limitation in cases not covered by any specific provision of the Act, general . principles of Letter written by defendant to the trustees -If acknowledgment of liability-Indian Limitation Act, 1908 (9 of 1908), SP. 15 (1), 19. The plaintiff, Ramanathan Chettiar, obtained a decree in 0. S. N >. 45 of 1943 for the recovery of an amount due on promissory note against one Venkatachalam Chettiar and assigned the decree in favour of the appellant in C. A. !05 of 1961, The execution application filed by him proved infructuous because the first defendant was adjudicated an insolvent on February 27, 1945. On September 9, 1946 a composition of the debts due from the insolvent and his son, the second defendant, was arrived at. To the deed of composition the second defendant was also a party though he was not adjudicated an insolvent. Under that deed the creditors, including the four appellants in this case, agreed to take 40% of the dues. Under the composition arrangement, the entire property of the defendants, both in India and in Burma was to vest in four trustees, one of whom was the insolvent that is, the first defendant to the suit. Two of the trustees were the present appellant in C. A. No. I 04 of 1961 and the fourth trustee was an outsider. The deed provided for the payment of the reduced amount by the trustees to different creditors from the income of the properties or by sale or mortgage of those properties within four years from April 14, 1947. The deed further provided for the extension of this time limit "according to exigencies and necessity at the discretion of the first two trustees" i. e., the first defendant and the appellant Chidambaram Chettiar. The composition contemplated the realisation of the dues of the creditors from the income or sale or mortgage of the Burma property, in the first instance. "The composition scheme was accepted by the insolvency court and the adjudication of the first defendant as insolvent was annulled by the court on December 19, 1946. Out of the Burma assets very little was realised within the period of four years prescribed in the composition deed and the trustees did not extend the time. The appellants, therefore, sought execution of their decree against the Indian assets. The last execution application in O. S. No. 46 of 1943 was dismissed on September 19, 1946, and no petition was filed thereafter till June 13, 1952. Similarly in the other three appeals execution applications were filed more than three years after the dismissal of the previous applications. In each of the execution applications, relief was claimed only against the second defendant. The Subordinate Judge, before whom the execution applications were filed, held that the adjustment precluded each of the appellants from executing his decree for a period of four years from April 14, 1917 and, therefore, the execution applications were within time. The High Court disagreed with the Subordinate Judge and hold in that the execution petitions were barred by time allowed the appeals. The main contention of the appellants in this Court was that the principle underlying s. 15 (1) of the Limitation Act applied to the present case and at any rate the letter written bv the second defendant to the trustees operated as an acknowledgment of liability under s.19 of the Limitation Act. |
Judge | Hon'ble Mr. Justice J.R. Mudholkar |
Neutral Citation | 1963 INSC 53 |
Petitioner | A. S. Krishnappa Chettiar & Ors. |
Respondent | Nachiappa Chettiar & Ors. |
SCR | [1964] 2 S.C.R. 241 |
Judgement Date | 1963-03-04 |
Case Number | 104-107 |
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