Union Bank Of India vs R.S. Associates And Ors.

S. Ravi Kumar, J

This Appeal is preferred against order dated 26.5.2010 in Original Application (O.A.) No. 105/2009 on the file of Debts Recovery Tribunal, Pune, (D.R.T.). Appellant-Bank filed above O.A. claiming a sum of Rs. 1,40,96,413/- on different counts from the defendants and the learned P.O., D.R.T., dismissed the O.A. on the ground that claim is not made within period of limitation. Advocate for appellant submitted that appellant relied on Section 19 of the Limitation Act, 1963 of the acknowledgement for purpose of limitation. In the O.A. pleading with regard to limitation is made in Para 4 which is as follows:

"The applicant declared that the application is within the limitation as prescribed under Section 24 of the Act. The applicant-Bank further says that the opponents availed of the various facilities on 23.3.1999, 27.12.1996, 12.12.1998 and on 23.3.1999. The opponents executed balance confirmation letters on 31.3.2001 and 30.9.2003, as mentioned hereinbelow. The opponent acknowledged the ledger balance standing at the foot of the said accounts on or about 18.12.2003, notice was issued on 25.6.2005. The applicant-Bank says that the opponents deposited amounts in the loan account on 20.6.2006 and thereby admitted their liability and indebtedness to the applicant-Bank and hence the application being filed today is well within limitation."

A bare reading of above para indicates that loan acknowledgement was on 18.12.2003, but the Bank contended that on 20.6.2006 defendants deposited a sum of Rs. 1.50 lacs in their account with the Bank and, therefore, from that date O.A. is within time as it is filed on 17.6.2009. Advocate for Bank submitted that as per Section 19 of the Limitation Act from last date of payment period is to be calculated for deciding limitation and, therefore. O.A. is within time.

It may be relevant to read Section 19 of the Limitation Act, 1963, which is as follows:

"19. Effect of payment on account of debt or of interest on legacy - Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly authorised in this behalf, a fresh period of limitation shall be computed from the time when the payment was made:

Provided that, save in the case of payment of interest made before the 1.1.1928, an acknowledgement of the payment appears in the handwriting of, or in a writing signed by the person making the payment."

Admittedly, in this case, there is no acknowledgement in writing from the borrower after 18.12.2003 and the O.A. is filed on 17.6.2009 which is hopelessly barred. Learned O.A. rightly rejected the O.A. as it is not filed within time and I do not find any grounds to interfere with the order of the Tribunal below.

For these reasons, I am of the view that Appeal is devoid of merits and liable to be dismissed. Appeal is dismissed with costs. All Miscellaneous Applications, if any, are dismissed as infructuous.