Allahabad High Court
(Maulvi) Abdul Ghani vs B. Chiranji Lal on 16 March, 1927
Equivalent citations: AIR1927ALL577, AIR 1927 ALLAHABAD 577
JUDGMENT Mukerji, J.
1. The question of law raised by this application in revision is whether an acknowledgment of a debt made after the expiration of the three years' period prescribed by Sch. 1 for a suit on a promissory note, but made before a suit on the note was actually barred by limitation, was a good acknowledgment,
2. It appears that the acknowledgment in this case was made while the right of institution of suit was still subsisting owing to holidays hearing come in. The limitation was to expire on 17th of October 1923 on the promissory note on which the suit was brought, but the suit could be instituted on the 23rd as the period between the 17th of October and 22nd of October 1923 was a holiday.
3. The Court below has decided against the defendant, hence this application in revision.
4. The answer to the question must depend on the correct reading of Section 19 and Section 4 of the Limitation Act. Section 19 says:
Where, before the expiration of the period prescribed for a suit or application in respect of any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by some person through whom he derives title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.
5. The period prescribed for a suit is, not necessarily the period prescribed by Sch. 1 of the Limitation Act. "The period prescribed" would mean in the ordinary sense of the words, the period prescribed by law, that is to say, the period prescribed by the entire body of the Limitation Act. The Sch. 1 read with, Section 4 of the Limitation Act would mean that the period prescribed for a suit on this particular promissory note, which was executed on 17th October 1920, was between 17th of October 1920 and 23rd October 1923. In my opinion there is no reason to limit the sense of the expression "the period prescribed" to the period prescribed in the schedule alone. Where such idea is meant to be expressed, adequate, words have been used for that purpose, for example, in Section 3 of the Limitation Act, we find the words "by the first schedule" added to the word "prescribed." In the case of Sheo Partab Singh v. Tajammul Husain A.I.R. 1927 All. 114 a Division Bench of this Court considered whether an acknowledgment made within the period prescribed by Section 31 of the Indian Limitation Act was a good acknowledgment. Their Lordships held that it was. This is, in my opinion, with respect, good law. I do not agree with the view taken in Bai Hamkore v. Masamalli [1902] 26 Bom. 782.
6. I hold that the acknowledgment was within time and did operate to extend the period of limitation.
7. The application fails and is hereby dismissed with costs.