High CourtsSingle Bench(2001) 08 MP CK 0048

Govind Prasad Patel vs Dhani Ram Patel

Madhya Pradesh High Court · Decided on 1 August 2001 · Citation: (2001) 4 MPHT 64 : (2002) 1 MPLJ 356

HON’BLE JUDGES
Mr. S.P. Khare, J
RESULT
Dismissed
CASE NUMBER
Second Appeal No. 326 of 2001

CourtKutchehry membership

More clarity. Every judgment.

Download court copies, explore connected cases and make more of every research session.

Loading membership options…

Ask AI about this case

AI Structured Summary

Not yet generated for this judgment

Judgment

6 paragraphs · 462 words

S.P. Khare, J.

This is defendant''s second appeal u/s 100, CPC. Arguments on the question of admission heard.

There is a concurrent finding of fact of the Trial Court and the First Appellate Court that the defendant took a necklace from the plaintiff on 5-3-1990 but did not return it. The defendant executed the document dated 22-3-1993 (Ex. P-1) expressly promising to return the ornament before 30-12-1993. The defendant executed another document dated 9-1-1994 (Ex. P-2) promising to return the same before 31-5-1994. The Trial Court dismissed the suit as barred by limitation. The First Appellate Court has decreed it.

It is argued on behalf of the appellant that the plaintiffs case is not covered by Section 18 of the Limitation Act, 1963 as the acknowledgement of liability as per documents Ex. P-l and Ex P-2 was not made "before the expiration of the prescribed period for the suit". To this extent his argument is legally correct and finds support from the decision of the Supreme Court in Sampuran Singh and Others Vs. Smt. Niranjan Kaur and Others, . In the present case there is not merely an acknowledgment but there is also a further express "promise to pay" and that brings the case within Section 25(3) of the Contract Act. It is well settled that a "promise to pay" a time barred debt is a good consideration u/s 25(3) of the Contract Act (Vimla Pradhan Vs. United Commercial Bank, 1990 MPLJ 819). A promise to pay a time barred debt is enforceable. Time barred debt is a good consideration for a fresh promise to pay ( Bhansarlal Paramsukh and Others Vs. Navalkishor Mungalal and Others, Written promise to pay a time barred debt furnishes by itself a fresh cause of action (Ghanshyamdas Vs. Ghasilal 1969 MPLJ 501).

It depends upon the language of the document under consideration whether a statement contained in it is a mere acknowledgment within the meaning of Section 18 of the Limitation Act, 1963 or whether it is a promise to pay within the meaning of Section 25(3) of the Contract Act. In Business Forms Ltd. and Ashoka Agencies, , also it has been held that a promise to pay time barred debt contained in a letter is covered by Section 25(3) of the Contract Act. To the same effect is the decision of Bombay High Court in South Eastern Roadways, Bombay Vs. U.P. State Agro Industrial Corporation Ltd. and Another, . It is thus well settled that a promise to pay time barred debt furnishes a fresh cause of action. The First Appellate Court has rightly held that the plaintiffs suit was within the period of limitation. No substantial question of law is involved in the present appeal. It is dismissed in limine.

Second Appeal dismissed.