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Issues:
1. Interpretation of Article 115 of the Jammu and Kashmir Limitation Act regarding the recovery of the price of goods sold and delivered. 2. Determination of whether the suit was governed by Article 115 of the Jammu and Kashmir Limitation Act. 3. Analysis of whether the account between the parties was mutual, as required by Article 115. 4. Examination of the contract terms regarding advance payment and its impact on the mutual account status. 5. Evaluation of the High Court's decision and reasoning in applying Article 115. Analysis: The Supreme Court judgment dealt with an appeal arising from a suit filed in the High Court of Jammu and Kashmir for the recovery of the price of goods sold and delivered. The central issue revolved around whether the suit fell under Article 115 of the Jammu and Kashmir Limitation Act, which governs the balance due on a mutual, open, and current account with reciprocal demands between the parties. The lower courts had divergent views on the application of Article 115, with the High Court initially dismissing the suit as time-barred, but the appellate bench later ruling in favor of the sellers, leading to the appeal in the Supreme Court. The Supreme Court analyzed the facts of the case, where an agreement was made between the parties for the supply of goods, with partial advance payment made by the buyer. The Court emphasized the requirement for reciprocal demands to establish a mutual account, citing the legal test laid down in previous cases. The Court highlighted that the payments made by the buyer were towards the price of goods delivered and did not create independent obligations on the sellers, thus negating the existence of a mutual account. Furthermore, the Court rejected the appellate bench's reasoning that the advance payment by the buyer created a debtor-creditor relationship, emphasizing that the advance was part of the contractual obligation and did not establish mutual dealings. The Court also disagreed with the view that delayed deliveries and payments indicated a breach of contract, clarifying that such conduct did not alter the contract terms but merely extended the timeline for performance. Additionally, the Court criticized the appellate bench for allowing the application of Article 115 without sufficient grounds in the pleadings, highlighting the lack of evidence supporting the existence of a mutual account. The judgment concluded by allowing the appeal, setting aside the High Court's decision, and awarding costs to the appellant. The Court clarified that the suit did not fall under Article 115 and reinstated the single Judge's ruling from the High Court. In summary, the Supreme Court's detailed analysis focused on the interpretation of Article 115, the requirement of a mutual account, the impact of advance payments on contractual obligations, and the proper application of legal tests in determining the limitation period for suits involving the recovery of goods sold and delivered.
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