{"id":105275,"date":"2008-09-24T00:00:00","date_gmt":"2008-09-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shabeg-singh-vs-raj-kumar-on-24-september-2008"},"modified":"2017-09-11T00:02:37","modified_gmt":"2017-09-10T18:32:37","slug":"shabeg-singh-vs-raj-kumar-on-24-september-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shabeg-singh-vs-raj-kumar-on-24-september-2008","title":{"rendered":"Shabeg Singh vs Raj Kumar on 24 September, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Shabeg Singh vs Raj Kumar on 24 September, 2008<\/div>\n
R.S.A.No.3087 of 2008                                   -1-\n\nIN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH\n\n\n                                           R.S.A.No.3087 of 2008\n\n                                           Date of Decision:24.9.2008\n\n\nShabeg Singh\n\n                                                        .....Appellant\n\n                                versus\n\nRaj Kumar\n\n                                                        .....Respondent\n\n\nCORAM:      HON'BLE MR.JUSTICE AJAY KUMAR MITTAL.\n\n\nPresent:    Mr. Baltej Singh Sidhu, Advocate for the appellant.\n\n                        ****\n\nAJAY KUMAR MITTAL, J.\n<\/pre>\n
            The present regular second appeal filed by the defendant is<\/p>\n
directed against the judgment and decree dated 4.6.2008 passed by<\/p>\n
the lower   appellate Court whereby that of       the trial Court dated<\/p>\n
19.8.2005 dismissing the suit of the plaintiff for recovery of<\/p>\n
Rs.6,25,000\/- was set aside and the suit of the plaintiff was partly<\/p>\n
decreed.\n<\/p>\n
            Put shortly, the facts of the case are that the defendant had<\/p>\n
been selling his crops to the plaintiff firm and also used to take amount<\/p>\n
on credit from time to time and had been returning the same which was<\/p>\n
credited in his account.       It was pleaded that on 18.10.1997, the<\/p>\n
defendant visited the shop of the plaintiff and enquired about his<\/p>\n
account, on which a total sum of Rs.1,73,378\/- (including interest of
\n R.S.A.No.3087 of 2008                                     -2-<\/span><\/p>\n
Rs.13,713\/-) was outstanding towards him. The defendant took another<\/p>\n
sum of Rs.2,26,622\/- in cash from the plaintiff and also executed a<\/p>\n
pronote and receipt to the tune of Rs.4 lacs on the same day, i.e.<\/p>\n
18.10.1997 in the presence of the witnesses and agreed to pay interest<\/p>\n
at the rate of 2% per month. It was further pleaded that a dispute arose<\/p>\n
between the parties and a compromise was got effected between them<\/p>\n
vide agreement dated 30.7.1998.           In the said compromise, the<\/p>\n
defendant admitted the outstanding amount of Rs.4,00,000\/- and the<\/p>\n
execution of the pronote and receipt dated 18.10.1997 and agreed to<\/p>\n
pay an amount of Rs.3,65,000\/- to the plaintiff upto 31.10.1998, in<\/p>\n
default, the defendant would pay the amount along with interest . It was<\/p>\n
further agreed in the compromise that the defendant would withdraw the<\/p>\n
criminal case filed against the plaintiff and the plaintiff would return the<\/p>\n
pronote and receipt to the defendant after receiving the aforesaid<\/p>\n
amount. According to the plaintiff, the defendant made a payment of<\/p>\n
Rs.56,690\/- on 7.5.1999 through M\/s Siri Ram Kishan Chand and sons<\/p>\n
and thereafter failed to make the payment of the outstanding amount<\/p>\n
and a total amount of Rs.6,25,000\/- (Rs.3,08,310\/- as principal plus<\/p>\n
Rs.3,16,690\/- interest) is outstanding and recoverable from the<\/p>\n
defendant after deducting the amount of Rs.56,690\/- paid on 7.5.1999.<\/p>\n
The plaintiff requested the defendant to make the payment of the<\/p>\n
outstanding amount but he refused to do so and that gave rising to the<\/p>\n
filing of the suit.\n<\/p>\n
              The claim of the plaintiff was controverted by the defendant<\/p>\n
by filing a written statement and raising various preliminary objections<\/p>\n
therein.    It was pleaded that neither the defendant borrowed any
\n R.S.A.No.3087 of 2008                                      -3-<\/span><\/p>\n
amount nor executed pronote and receipt in favour of the plaintiff. It was<\/p>\n
further pleaded that the defendant had been selling his agricultural<\/p>\n
produce at the plaintiff’s firm but after Harri 1997, the relations between<\/p>\n
the plaintiff and the defendant became strained and the plaintiff showed<\/p>\n
a huge amount outstanding against the defendant. According to the<\/p>\n
defendant, he under fear and compelling circumstances signed the<\/p>\n
pronote and bahis and the agreement dated 30.7.1998 was a false and<\/p>\n
fabricated document as no compromise was effected between him and<\/p>\n
the plaintiff. The other averments made in the plaint were denied and a<\/p>\n
prayer for dismissal of the suit was made.\n<\/p>\n
             The trial Court on appreciation of the oral as well as the<\/p>\n
documentary evidence adduced by the parties held that the plaintiff<\/p>\n
failed to prove the execution of the pronote and receipt dated<\/p>\n
18.10.1997 on the basis of which compromise dated 30.7.1998 was<\/p>\n
effected. It was further held that the plaintiff was not entitled to the<\/p>\n
recovery of Rs.6,25,000\/- from the plaintiff and that the suit of the<\/p>\n
plaintiff was time barred. Accordingly, the trial court vide judgment and<\/p>\n
decree dated 19.8.2005 dismissed the suit of the plaintiff.           Feeling<\/p>\n
aggrieved, the plaintiff approached the lower appellate court which vide<\/p>\n
judgment and decree dated 4.6.2008 accepted the appeal. The lower<\/p>\n
appellate court while setting aside the judgment and decree of the trial<\/p>\n
court held that the suit was filed within limitation. The lower appellate<\/p>\n
court   recorded   that   the   parties   had   entered    into   a   written<\/p>\n
compromise\/agreement on 30.7.1998 whereby the defendant had<\/p>\n
accepted the liability of outstanding amount of Rs.3,65,000\/- which was<\/p>\n
to be deposited with the respondent-plaintiff in two installments, i.e. first
\n R.S.A.No.3087 of 2008                                    -4-<\/span><\/p>\n
installment of Rs.1,65,000\/- on 31.10.1998 and second installment of<\/p>\n
Rs.2,00,000\/- on 15.5.1999. Further, in the criminal complaint filed by<\/p>\n
defendant-Subeg Singh against Raj Kumar-plaintiff, an application,<\/p>\n
Ex.P11, was filed by the defendant wherein he had admitted that he had<\/p>\n
entered into a compromise for Rs.3,65,000\/- and the criminal court after<\/p>\n
recording the statement of the defendant on 29.9.1998 ordered the<\/p>\n
complaint to be dismissed as withdrawn vide Ex.P7\/A. Accordingly, it<\/p>\n
was held that the defendant-appellant had admitted the compromise<\/p>\n
between him and the plaintiff concerned by virtue of Ex.P11 and the suit<\/p>\n
of the plaintiff was decreed to the extent that he was entitled to recover<\/p>\n
Rs.3,65,000\/- along with interest at the rate of 12% per annum from the<\/p>\n
date of execution of the pronote, i.e. 18.10.1997 till the date of decision<\/p>\n
of the appeal, i.e. 4.6.2008, and future interest at the rate of 6% per<\/p>\n
annum from 4.6.2008 till the date of realization.\n<\/p>\n
            I have heard learned counsel for the appellant and perused<\/p>\n
the impugned judgments with his assistance.\n<\/p>\n
            Learned counsel for the appellant has submitted that the<\/p>\n
agreement\/compromise and Ex.P11 relied upon by the lower appellate<\/p>\n
court as acknowledgment for extension of limitation was in the criminal<\/p>\n
case and the same could not be treated as an acknowledgment for the<\/p>\n
purpose of extension of limitation in this case. He further submitted that<\/p>\n
the principal amount claimed from the defendant was Rs.3,08,310\/-<\/p>\n
whereas the decree had been passed for the recovery of Rs.3,65,000\/-.<\/p>\n
            Section 18 of the Limitation Act, 1963 (in short “the Act”)<\/p>\n
relates to the effect of acknowledgment in writing. It reads thus:-<\/p>\n
                   “18.   Effect of acknowledgment in writing.- (1)
\n R.S.A.No.3087 of 2008                                       -5-<\/span><\/p>\n
                Where, before the expiration of the prescribed period<\/p>\n
                for a suit or application in respect of any property or<\/p>\n
                right, an acknowledgment of liability in respect of<\/p>\n
                such property or right has been made in writing<\/p>\n
                signed by the party against whom such property or<\/p>\n
                right is claimed, or by any person through whom he<\/p>\n
                derives his title or liability, a fresh period of limitation<\/p>\n
                shall   be    computed       from   the   time    when the<\/p>\n
                acknowledgment was so signed.\n<\/p><\/blockquote>\n
                        (2)   Where      the    writing     containing     the<\/p>\n
                acknowledgment is undated, oral evidence may be<\/p>\n
                given of the time when it was signed; but subject to<\/p>\n
                the provisions of the Indian Evidence Act, 1872 (1 of<\/p>\n
                1872), oral evidence of its contents shall not be<\/p>\n
                received.\n<\/p><\/blockquote>\n
                Explanation.- For the purposes of this Section,-<\/p>\n<\/blockquote>\n
                (a)     an acknowledgment may be sufficient though it<\/p>\n
                        omits to specify the exact nature of the<\/p>\n
                        property or right, or avers that the time for<\/p>\n
                        payment, delivery, performance or enjoyment<\/p>\n
                        has not yet come or is accompanied by refusal<\/p>\n
                        to pay, deliver, perform or permit to enjoy, or is<\/p>\n
                        coupled with a claim to set-off, or is addressed<\/p>\n
                        to a person other than a person entitled to the<\/p>\n
                        property or right,<\/p>\n<\/blockquote>\n
                (b)     the   word   “signed”       means    signed      either
\n R.S.A.No.3087 of 2008                                       -6-<\/span><\/p>\n
                           personally or by an agent duly authorised in<\/p>\n
                           this behalf, and<\/p>\n<\/blockquote>\n
                    (c)    an application for execution of a decree or<\/p>\n
                           order shall not be deemed to be an application<\/p>\n
                           in respect of any property or right.”<\/p><\/blockquote>\n
             The aforesaid provision postulates that where before the<\/p>\n
expiration of period of limitation for filing a suit in respect of any property<\/p>\n
or right, an acknowledgment is made in writing by the party against<\/p>\n
whom such property or right is claimed regarding the liability in respect<\/p>\n
of such property or right, a fresh period of limitation commences from<\/p>\n
the time of signing of the acknowledgment. The appellant could not run<\/p>\n
away from the fact that the acknowledgment of debt had been made<\/p>\n
and as per Section 18 ibid it does not draw any distinction between civil<\/p>\n
or criminal proceedings       but relates to the acknowledgment of an<\/p>\n
existing debt. Thus, the plea of the learned counsel for the appellant<\/p>\n
that the acknowledgment was made in criminal proceedings does not<\/p>\n
carry any weight.\n<\/p>\n
             In view of the findings recorded, it cannot be disputed that<\/p>\n
the defendant vide compromise deed dated 30.7.1998 and Ex.P11 had<\/p>\n
accepted the liability of outstanding amount of Rs.3,65,000\/- which was<\/p>\n
to be deposited with the respondent in two installments, i.e.             first<\/p>\n
instalment of Rs.1,65,000\/- on 31.10.1998 and the second instalment of<\/p>\n
Rs.2,00,000\/- on 15.5.1999.           The suit having been filed on<\/p>\n
30.7.2001\/1.8.2001 for recovery of a loan amount cannot be said to be<\/p>\n
beyond limitation on the face of the compromise dated 30.7.1998 and<\/p>\n
the acknowledgment of the existing debt by way of application, Ex.P11.
\n R.S.A.No.3087 of 2008                                     -7-<\/span><\/p>\n
             Now adverting to the next submission of the learned<\/p>\n
counsel for the appellant, suffice it to notice that no installment in terms<\/p>\n
of the aforesaid compromise was made by the appellant to the<\/p>\n
respondent. It is, thus, undisputed that an amount of Rs.3,65,000\/- is<\/p>\n
outstanding against the defendant-appellant which is inclusive of<\/p>\n
interest accrued on the debt also. The said submission is, therefore,<\/p>\n
rejected.\n<\/p>\n
             No question of law much less a substantial question of law<\/p>\n
arises in this appeal for consideration of this Court.<\/p>\n
             In view of what has been stated above, the present appeal<\/p>\n
fails and the same is hereby dismissed with no order as to costs.<\/p>\n
September 24, 2008                           (AJAY KUMAR MITTAL)\ngbs                                                JUDGE\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Shabeg Singh vs Raj Kumar on 24 September, 2008 R.S.A.No.3087 of 2008 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH R.S.A.No.3087 of 2008 Date of Decision:24.9.2008 Shabeg Singh …..Appellant versus Raj Kumar …..Respondent CORAM: HON’BLE MR.JUSTICE AJAY KUMAR MITTAL. Present: Mr. Baltej Singh Sidhu, Advocate for the appellant. **** […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-105275","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nShabeg Singh vs Raj Kumar on 24 September, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/shabeg-singh-vs-raj-kumar-on-24-september-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shabeg Singh vs Raj Kumar on 24 September, 2008 - 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