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Devchand Chatraji Vs. Jamshedji Shapurji - Court Judgment

LegalCrystal Citation
SubjectLimitation
CourtMumbai
Decided On
Case NumberCivil Extraordinary Application No. 281 of 1922
Judge
Reported inAIR1923Bom369; (1923)25BOMLR354
AppellantDevchand Chatraji
RespondentJamshedji Shapurji
Excerpt:
.....of principal appearing in the handwriting of one of them though signed by both-part-payments save limitation.;where two persons jointly borrow a sum of money and pass one khata signed by both, the part-payments appearing in the handwriting of one of them but signed by both, save limitation against both of them, under section 20 of the indian limitation act 1908. - maharashtra scheduled castes, scheduled tribes, de-notified tribes (vimukta jatis), nomadic tribes, other backward classes and special backward category (regulation of issuance and verification of) caste certificate act (23 of 2001), sections 6 & 10: [s.b. mhase, a.p. deshpande & p.b. varale, jj] caste certificate petitioner seeking appointment against the post reserved for member of schedule tribe his caste..........however, jamshedji authorised the second defendant to make payments towards the reduction of the joint debt, and signified that, not only by being present when the payment was made, but by signing underneath. in my opinion, that clearly amounted to an acknowledgment that the liability was continuing.4. section 19 provides for an acknowledgment in writing. section 20 provides other means by which a debt can be kept alive. but those acts which are mentioned therein, which, if done by a debtor will start a fresh period of limitation, are acts which in effect constitute an acknowledgment of the liability. i think, therefore, that the rule must be made absolute and there must he a decree against the first defendant also with costs throughout.crump, j.5. i agree. upon the facts of this case,.....
Judgment:

Norman Macleod, Kt., C.J.

1. One Sorabji Rustomji and Jamshedji Shapurji signed an entry in the plaintiff's book to the effect that they had borrowed Re. 599 which they promised to pay. Payments were made on account which appeared in the handwriting of Sorabji, with the signature of Jamshedji Shapurji added The plaintiff relied upon these entries as saving limitation under Section 20 of the Indian Limitation Act. The learned Judge held that the claim against Jamshedji, the first defendant in the suit, was time-barred, and that although he was present at the time when the payments were made, still as he had not himself written the fact that he made the payment, the payment could be of no use against him as part-payment in his own hand. If that view were correct, then it would be, in my opinion, a very startling interpretation of the law. Where two persons are liable on a debt embodied in a Khata and they make payments towards satisfaction of the debt, then it would be absurd to suppose that the law required that it would be necessary that both persons should make entries in the creditor's book. Section 20 of the Indian Limitation Act prescribes that when part of the principal of a debt is, before the expiration of the prescribed period, paid by the debtor or by his agent duly authorised in this behalf, a new period of limitation shall be computed from the time when the payment was made: provided that, in the case of part-payment of the principal of a debt, the fact of the payment appears in the handwriting of the person making the same.

2. By Section 21(2) nothing in Sections 19 and 20 renders one of several joint contractors chargeable by reason only of a written acknowledgment signed, or of a payment made by, or by the agent of, any other or others of them. The effect of that is that if one of two joint contractors has done anything which starts a new period of limitation, then that new period starts only as against him, not as against his joint contractor.

3. In this case, however, Jamshedji authorised the second defendant to make payments towards the reduction of the joint debt, and signified that, not only by being present when the payment was made, but by signing underneath. In my opinion, that clearly amounted to an acknowledgment that the liability was continuing.

4. Section 19 provides for an acknowledgment in writing. Section 20 provides other means by which a debt can be kept alive. But those acts which are mentioned therein, which, if done by a debtor will start a fresh period of limitation, are acts which in effect constitute an acknowledgment of the liability. I think, therefore, that the rule must be made absolute and there must he a decree against the first defendant also with costs throughout.

Crump, J.

5. I agree. Upon the facts of this case, I have no hesitation in holding that when defendant No. 2 paid the sum of Rs. 10 on Ashad Sud the 6th, he made that payment as the agent of defendant No. 1. That defendant No. 1 authorized him in that behalf is clear from the circumstances that he himself was present at the time, and that he affixed his signature below that of Sorabji. It follows, therefore, that as regards defendant No. 1, there was a payment made by an agent duly authorised by him, and further that the fact of that payment appears in the handwriting of the person making it, that is to say, the agent of defendant No. 1. Therefore a fresh period of limitation starts as against defendant No. 1 as from that date, I find nothing in Section 21, which has been invoked in argument, to militate against that view. I agree, therefore, with the order proposed.


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