9911796707
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Issues:
1. Appeal against the first appellate Court's judgment reversing the trial Court's decision on a loan suit. 2. Consideration of whether a cheque payment saves limitation under Section 20 of the Limitation Act. 3. Analysis of conflicting views on the interpretation of "payment" in Section 20. 4. Examination of various High Court rulings on the effect of dishonoured cheques on limitation. 5. Clarification on the legal implications of handing over a negotiable instrument as payment. 6. Discussion on the applicability of Order 7 Rule 7 for granting relief not expressly prayed for. 7. Defendant's argument on territorial jurisdiction and lack of opportunity to prove his case. 8. Final judgment allowing the appeal, setting aside the first appellate Court's decision, and restoring the trial Court's judgment. Analysis: 1. The appeal arises from the first appellate Court's decision overturning the trial Court's ruling on a loan suit for Rs. 1000 and interest. The appellate Court deemed the suit time-barred due to a cheque payment not constituting an acknowledgment under Section 20 of the Limitation Act unless the cheque is honored, which was not the case here. The plaintiff did not explicitly seek relief for the dishonored cheque, leading to the dismissal of the suit. 2. The central issue revolves around whether a cheque payment can save limitation under Section 20 of the Limitation Act. The plaintiff contended that payment by cheque should be considered payment from the date it is given, even if subsequently dishonored. The plaintiff also argued for relief based on the dishonored cheque, citing Order 7 Rule 7 of the Civil Procedure Code. 3. The judgment delves into the interpretation of "payment" in Section 20, highlighting conflicting views from different High Court rulings. While some courts considered payment by negotiable instruments conditional until realization, others viewed it as payment upon acceptance. The analysis underscores the distinction between ostensible payment and actual realization in determining the effect on limitation. 4. Various High Court precedents are cited to support the differing interpretations of payment by cheques and negotiable instruments. The judgment contrasts the views of courts like the Bombay High Court with those of the Calcutta and Madras High Courts, emphasizing the impact of dishonor on the revival of the original debt. 5. The judgment elucidates that handing over a negotiable instrument, such as a cheque, constitutes payment under Section 20 once accepted by the creditor. The creditor can revert to the original claim if the instrument is dishonored but cannot block the fresh period of limitation that commenced upon acceptance. 6. The discussion extends to the application of Order 7 Rule 7 for granting relief not expressly sought by the plaintiff. The principle of ensuring justice based on full disclosure of relevant facts is emphasized, with a caution against overly technical interpretations that may impede justice. 7. The defendant's argument on territorial jurisdiction and lack of opportunity to present his case is addressed. The defendant's conduct, including delays and absence during proceedings, is scrutinized to determine the validity of his claims and defenses. 8. The final judgment allows the appeal, overturns the first appellate Court's decision, and reinstates the trial Court's judgment in favor of the plaintiff. Costs are awarded to the plaintiff throughout the proceedings, with the defendant bearing the pleader's fee.
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