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2004 (12) TMI 726

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..... tating that Adivelu borrowed a sum of Rs. 26,000/- on 20.11.91 and also Rs. 25,000/- on 15.12.91 under two different pronotes agreeing to repay the same with interest at the rate of Rs. 18% p.a. and in connection with first pronote, Adivelu made part payments of Rs. 3,500/- and Rs. 3,000 on 8.11.94 and 18.11.97 respectively and, with regard to second pronote dated 15.12.91, he made part payment of Rs. 3,500/- on 8.11.94 and Rs. 4,000/- on 28.11.97 but not thereafter. As such, calculating the amount due under the said two pronotes, the plaintiff claimed Rs. 1,47,978/- from Adivelu showing that cause of action arose on 20.11.91, 15.12.91, 8,11.94, 18.11.97 and 28.11.97. On his appearance before the trial Court, Adivelu filed I.A.5 under Order .....

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..... does not come to the aid of the plaintiff to extend the limitation period under Section 18 or 19 of that Act. Still, let me consider whether the acknowledgment and part payment made by the defendant could be of any help to the plaintiff or not. 5. Acknowledgment of liability is nothing but an admission of the truth of one's own liability. It is well settled that an unqualified, unequivocal and unconditional acknowledgment of a debt is a clear admission of the liability to pay it. Such an admission may be in any form and may be 'express' or 'implied', as held by the Supreme Court in the case of SHAPOOR FREEDOM MAZDA v. DURGA PRASAD CHAMARIA AND ORS., [1962]1SCR140 . But, whatever may be the form, regard must be had to .....

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..... ch an acknowledgment amounts to a 'promise' to pay. So also, where the debtor by a letter proposes to pay a time barred debt in monthly installments and pays some of the installments, the acceptance of the installment amounts to acceptance of the proposal by the creditor and the proposal is converted into a 'promise'. 8. Like acknowledgment, part payment could be regarded as equivalent to admission of a debt. So, in the facts and circumstances of the case, the words used in an acknowledgment accompanied by part payment require to be construed to determine whether there is any evidence showing a determination to pay debt and amounts to a 'promise' to pay it or not. 9. In the case on hand, there is not only an ac .....

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..... quirements namely, whether there is a 'promise' to pay whole or in part the time barred debt and whether this could be construed as 'promise' made under Section 25(3) of the Act or not, is the point for consideration. 12. Section 2(b) defines the term 'promise' as under: when the person whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise . 13. According to Section 9 of the Contract Act, where the proposal or acceptance of any promise is made in words, the promise is said to be express and where such proposal or acceptance is made otherwise, it is implied promise . Thus, a promise could be express or implied . 14. Si .....

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..... decision of the Supreme Court in the case of Shapoor Freedom Mazda (supra) wherein it is held that an admission could be 'express' or 'implied', 'promise' covered by Section 25(3) of the Act, need not be 'express'. If the legislature had intended that such promise should be an 'express promise' only, it would have indicated so but the word 'express' is not found in Section 25(3) of the Act. So, it would not be proper to read so and restrict the scope of Section 25(3) of the Act to express promise only. In the above view, I do not agree that the view taken by the Delhi High Court in the case of Tulsiram (supra) and also of the Madras High Court in the case of N. E. ETHIRAJULU NAIDU v. K. R. C .....

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