9911796707
TMI Blog2013 (6) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... Company. Copies of these four invoices are at Annexure-A. On account of non payment of the amounts due under these invoices by respondent to the petitioner there was exchange of correspondence by e-mail between the parties. Respondent company by its e-mail dated 14.01.2010 has informed the petitioner that on account of delay in tie up of its funds payments were not made and respondent has also informed the petitioner that it would be sending its statement of accounts for reconciliation and will make arrangements of funds to pay the dues of the petitioner. Subsequently on 06.04.2010 there was one more e-mail from respondent to petitioner whereunder it has categorically admitted that it is in a position to make a commitment of settling the dues of the petitioner starting from the said month. It is also agreed to thereunder that first payment would be made between 10 and 15th of the said month namely April, 2010. Respondent has also categorically stated that it would clear all the dues by the end of May, 2010. Having said so, respondent did not pay the amounts to the petitioner and as such a statutory notice came to be issued by the petitioner on 04.12.2012 - Annexure-L and on receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... November, 2008 and present petition has been filed in 2013 and as such debt in question is 'barred by limitation. Elaborating his submissions he contends that alleged acknowledgement of debt from respondent to petitioner by e-mail dated 06.04.2010 is not duly signed by respondent and as such it cannot be construed as an acknowledgement of debt since it does not satisfy the criteria prescribed under Section 18 of the Limitation Act, 1963. Hence, he contends that petitioner is not entitled to recover the amount alleged to be due from respondent. 7. Per contra, learned counsel for petitioner submits that respondent has never disputed the liability and having admitted that amounts are due by it to petitioner through e-mails, it cannot now contend contrary to its own admission. He prays for rejection of said plea and ordering for winding up of respondent Company. It is no doubt true that consent does not confer jurisdiction to revive the limitation. In the instant case the question of limitation though having been raised for the first time without laying foundation either in the reply notice or in statement of objections, it could have been brushed aside outright but on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of liability. A narrow interpretation should not be put on what constitutes acknowledgement under Section 18. An acknowledgement is an admission by the debtor to the creditor indicating that he owes money to the creditor. The acknowledgement requires to be examined in the light of surrounding circumstances by an admission that the writer owes a debt. Generally speaking, a literal construction of the statement on which the acknowledgement is sought to be founded should be given. If there is an admission of fact of which the liability in question is a necessary consequence, it should be taken as an acknowledgement. The term 'acknowledgement' has to be construed in its plain literary sense. In Oxford Dictionary II Edition, it has been defined as under: ' acknowledgement - acceptance of the truth or existence of something; recognition of the importance or quality of something; the expression of gratitude or appreciation for something; the action of showing that one has noticed someone or something; a letter confirming receipt of something.' In Black's Law Dictionary 9th Edition, it has been defined as : ' acknowledgement - a recognition of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to your xxx with Mr. Ramesh. As explained to you, we are in a position to make a commitment of settling our dues progressively starting from this month. We will make the first payment between 10-15 off this month and clear all your reconciled dues by end of May . [Emphasis supplied] 13. Respondent having admitted to the said effect has now contended that it is not an acknowledgement of debt in the eye of law since it is not duly signed by the respondent and as such respondent is now attempting to take umbrage under section 18 of the Indian Limitation Act, 1963. Said contention is liable to be rejected for reasons more than one. Respondent does not dispute that on 14.01.2010 at 5.50 P.M it has forwarded to the petitioner an e-mail intimating thereunder the reasons for not settling the dues of the petitioner. Likewise respondent also does not dispute about e-mail forwarded by it to the petitioner on 06.04.2010 at 4.30 P.M. whereunder it has assured the petitioner of settling the dues progressively starting from the said month . The said acknowledgement cannot be held as not satisfying the criteria prescribed under Section 18 of the Limitation Act, 1963. It has to be held that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate legal framework. The two principal hurdles which stand in the way of facilitating electronic commerce and electronic governance are the requirements as to writing and signature for legal recognition. At present many legal provisions assume the existence of paper based records and documents and records which should bear signatures. The Law of Evidence is traditionally based upon paper based records and oral testimony. Since electronic commerce eliminates the need for paper based transactions, hence to facilitate e-commerce, the need for legal changes have become an urgent necessity. International trade through the medium of e-commerce is growing rapidly in the past few years and many countries have switched over from traditional paper based commerce to e-commerce. 2** ** ** 3. There is need for bringing in suitable amendments in the existing laws in our country to facilitate e-commerce. It is, therefore, proposed to provide for legal recognition of electronic records and digital signatures. The will enable the conclusion of contracts and the creation of rights and obligations through the electronic medium. It is also proposed to provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed microfiche. (v) information includes data, message, text, images, sound, voice, codes, computer programmes, software and databases or micro film or computer generated microfiche. (za) originator means a person who sends, generates, stores or transmits any electronic message; or causes any electronic message to be sent, generated, stored or transmitted to any other person but does not include an intermediate. 4. Legal recognition of electronic records. - Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is- (a) rendered or made available in an electronic form; and (b) accessible so as to be usable for a subsequent reference.' Section 4 of The IT Act, 2000 provides that if information or any other matter is to be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, the requirement is deemed to have been satisfied if such information or matter is rendered or made available in an 'ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. This mode of transaction is legally recognised under Section 4 of the IT Act, 2000. 18. The very preamble of IT Act, 2000 would indicate that it has been enacted to provide legal recognition for transactions which would be carried out by use of electronic data as an alternative to traditional paper based communications. The necessity to introduce the said Act can be noticed from the preamble of IT Act, 2000 and the introduction would be complete answer to the issue on hand and it reads as under: 'The Act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communications, commonly referred to as electronic commerce , which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Banker's Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto;' 19. Order V of Code of Civil Procedure prescribes the mode and procedure for issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils have to be construed and read as a due and proper acknowledgement and it would meet the parameters laid down under section 18 of the Limitation Act, 1963 to constitute a valid and legal acknowledgement of debt due. 22. For the reasons aforestated and in view of the discussion made hereinabove, I am of the considered view that point formulated hereinabove requires to be answered by holding that an acknowledgement of debt by e-mail originating from a person who intends to send or transmit such electronic message to any other person who would be the 'addressee' would constitute a valid acknowledgement of debt and it would satisfy the requirement of Section 18 of the Limitation Act, 1963 when the originator disputes having sent the e-mail to the recipient. 23. This Court having already held by order dated 04.06.2013 that on reconciliation of accounts respondent has admitted the debt due to the petitioner is at 4,20,562/- and respondent having been granted sufficient time to pay the said amount and even after granting sufficient time, respondent having not paid the admitted outstanding amount it would clearly indicate that respondent is unable to pay its admitted debt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
