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Issues Involved:
1. Nature of the amount due (deposit or loan) and applicable Article of the Indian Limitation Act. 2. Liability of the heirs and legal representatives of Chhotalal for the suit claim. Detailed Analysis: 1. Nature of the Amount Due (Deposit or Loan) and Applicable Article of the Indian Limitation Act: The primary issue was whether the amount due from the defendant firm was a deposit governed by Article 60 of the Indian Limitation Act or a loan governed by Articles 57 or 59. The appellant argued that it was a loan, which would make the suit time-barred as the limitation period would start from the date the loan was made. Conversely, the respondent contended that it was a deposit, and the limitation period would commence from the date of demand. The court examined the nature of the transaction and determined that the amount was indeed a deposit. The court emphasized that the plaintiff had to prove that the amount handed over was a deposit and not a loan. The court referred to several precedents, including Govind Chintaman Bhat v. Kachubhai Gulabchand and Suleman Haji Ahmed Umer v. Haji Abdulla Haji Rahimtulla, to establish the distinction between a loan and a deposit. The court noted that the firm continued to send statements of accounts to the plaintiff, which indicated that the amount was treated as a deposit. The absence of any security like a promissory note or a receipt further supported this conclusion. The court concluded that the amount was a deposit governed by Article 60 of the Indian Limitation Act, and the suit was filed within the prescribed period of three years from the date of demand made in May 1955. 2. Liability of the Heirs and Legal Representatives of Chhotalal: The second issue was whether the shares in the ancestral joint family properties of Chhotalal, with defendants Nos. 4 to 10, were liable for the suit claim. The appellants argued that Chhotalal's liability was personal and did not extend to the joint family properties. The court analyzed the doctrine of pious obligation under Hindu Law, which obligates sons to pay their father's debts unless the debts were for illegal or immoral purposes. The court referred to Mulla's Hindu Law and relevant case law, including S. M. Jekati v. S. M. Borker, to establish that the liability of the sons continues even after the father's death and is not affected by the partition of the joint family property unless provision is made for the payment of the father's debts. The court found that Chhotalal was a partner in the firm in his individual capacity, and his liability extended to the joint family properties. The court also noted that Natwarlal, the eldest son, joined the firm after Chhotalal's death, representing the family. The court rejected the argument that the debt was for a new business, which would have exempted the family properties from liability, due to lack of evidence. The court held that the shares of defendants Nos. 4 to 10 in the joint family properties were liable for the suit claim, and the doctrine of pious obligation applied. Conclusion: The court dismissed the appeal, affirming that the amount due was a deposit governed by Article 60 of the Indian Limitation Act, and the suit was filed within the limitation period. Additionally, the court held that the shares in the joint family properties of Chhotalal were liable for the suit claim based on the doctrine of pious obligation. The appeal was dismissed with costs.
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