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Recovery of mortgage debt, validity of acknowledgment in document, limitation period for filing suit Analysis: The suit involved the recovery of a mortgage debt of Rs. 900 executed in 1922. The mortgagee died, and the debt was later discharged through an assignment to her son. Subsequently, the mortgaged property was sold to the second defendant. The plaintiff, based on an assignment by the deceased mortgagee's daughter, filed a suit to enforce the debt. The main contentions raised were regarding the ownership of the debt and the limitation period for filing the suit. The trial court dismissed the suit, accepting the defendant's arguments. However, the Subordinate Judge reversed the decision and decreed the plaintiff's suit. The key issue in the second appeal was whether an acknowledgment in a document (Ex. P-2) by the first defendant constituted a valid acknowledgment of the debt, affecting the limitation period for the suit. The interpretation of the acknowledgment in the document was crucial to determine the subsistence of the liability. The court analyzed the contents of Ex. P-2, where the first defendant admitted the debt but stated it was discharged through various means. The court deliberated on whether this statement amounted to an acknowledgment of a subsisting liability. The judge disagreed with the Subordinate Judge's dissection of the statement and emphasized interpreting the document as a whole. Referring to precedents, the court highlighted the importance of clear acknowledgment without indications of discharge for a valid acknowledgment of liability. The court distinguished cases where a debt acknowledgment was coupled with a discharge statement, emphasizing the need for an unqualified admission of liability for a valid acknowledgment. Citing relevant judgments, the court emphasized the distinction between statements indicating a due debt and those coupled with assertions of discharge. Ultimately, the court held that the Subordinate Judge's decision on the acknowledgment's validity was erroneous, allowing the second appeal, setting aside the Subordinate Judge's decision, and restoring the trial court's decision with costs. In conclusion, the judgment focused on the interpretation of an acknowledgment in a document to determine the subsistence of a debt liability and its impact on the limitation period for filing a suit for recovery of the mortgage debt. The court's analysis underscored the necessity of a clear acknowledgment without indications of discharge for a valid acknowledgment of liability, ultimately leading to the allowance of the second appeal and restoration of the trial court's decision.
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