{"id":229102,"date":"1989-05-01T00:00:00","date_gmt":"1989-04-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-saraswathy-alias-k-kalpana-vs-p-s-s-somasundaram-chettiar-on-1-may-1989"},"modified":"2017-09-02T02:06:22","modified_gmt":"2017-09-01T20:36:22","slug":"k-saraswathy-alias-k-kalpana-vs-p-s-s-somasundaram-chettiar-on-1-may-1989","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-saraswathy-alias-k-kalpana-vs-p-s-s-somasundaram-chettiar-on-1-may-1989","title":{"rendered":"K. Saraswathy Alias K. Kalpana &#8230; vs P.S.S. Somasundaram Chettiar on 1 May, 1989"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">K. Saraswathy Alias K. Kalpana &#8230; vs P.S.S. Somasundaram Chettiar on 1 May, 1989<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1989 AIR 1553, \t\t  1989 SCR  (2) 819<\/div>\n<div class=\"doc_author\">Author: R Pathak<\/div>\n<div class=\"doc_bench\">Bench: Pathak, R.S. (Cj)<\/div>\n<pre>           PETITIONER:\nK. SARASWATHY ALIAS K. KALPANA (DEAD) BY LRS.\n\n\tVs.\n\nRESPONDENT:\nP.S.S. SOMASUNDARAM CHETTIAR\n\nDATE OF JUDGMENT01\/05\/1989\n\nBENCH:\nPATHAK, R.S. (CJ)\nBENCH:\nPATHAK, R.S. (CJ)\nMUKHARJI, SABYASACHI (J)\nMISRA RANGNATH\n\nCITATION:\n 1989 AIR 1553\t\t  1989 SCR  (2) 819\n 1989 SCC  (4) 527\t  JT 1989 (2)\t480\n 1989 SCALE  (1)1179\n\n\nACT:\n    Practice and Procedure: Court order providing for depos-\nit of amount--Payment by cheque whether valid.\n    Original Side Rules--Madras High Court: Order XXXI Rules\n1-6--Depositing\t Money\tinto  Court--Payment  of  money\t  by\ncheque--Whether due compliance.\n\n\n\nHEADNOTE:\n    The\t appellant filed a civil suit in the High Court\t for\nspecific performance of a contract to sell the suit property\nby the respondents to her. The High Court held the appellant\nliable to discharge the mortgage and directed her to deposit\nin  Court a sum of Rs.3.5 lakhs with interest for  the\tpur-\npose. The appellant paid the amount direct to the mortgagee,\nwhich  the  High Court refused to accept as  due  compliance\nwith its decree.\n    The\t appellant  preferred appeals to this  Court,  which\nwere  disposed of on 29th November, 1979 with the  direction\nthat the appellant was to deposit within six months from the\ndate of the order, the entire sum of Rs.3.15 lakhs  together\nwith interest.\n    Purporting\tto comply with the aforesaid order  of\tthis\nCourt,\tappellant  deposited a sum of Rs.2,42,822.19  on  11\nApril, 7980 and filed two Civil Misc. Petitions in the\tHigh\nCourt  for a declaration that the payment was in  compliance\nwith  the order of this Court and claimed as set off of\t the\namount\tof Rs.5,96,687.19 paid by her earlier to  the  South\nIndian\tBank,  which she was entitled to  recover  from\t the\nrespondent.\n    The\t time limit fixed for fulfilling the two  conditions\nset  out  in this Court's order dated  29th  November,\t1979\nhaving\tfallen\ton  29th May, 1980 and the  High  Court\t not\nhaving passed orders on the appellant's two CMP's the appel-\nlant paid into the High Court a sum of Rs.6.02 lakhs on 29th\nMay,  1980  by cheque purporting to comply  with  the  first\ncondition of this Court's order.\n820\n    The High Court dismissed the appellant's CMP and refused\nto  grant  the declaration that the appellant  had  complied\nwith  the order of this Court dated 29th November. 1979,  on\nthe  ground that the appellant was bound to comply with\t the\nOriginal  Side Rules of the High Court which prescribed\t the\nprocedure  to  be followed in depositing  money\t into  Court\nparticularly Order XXXI Rules 1 to 6 which aimed at securing\nthe deposit of the money in the Reserve Bank of India to the\ncredit\tof a particular proceeding, on or before the  speci-\nfied date.\n    In\tthe appeal to this Court, on the  question;  whether\npayment made by the appellant on 29th May, 1980 by cheque of\nthe amount of Rs.6.02 lakhs together with the amount  depos-\nited  earlier on 11th May, 1980 was in due  compliance\twith\nthis Court's order dated 29th November, 1979.\n    Allowing  the Appeal and setting aside the order of\t the\nHigh Court, this Court\n    HELD:  1. Payment by cheque is an ordinary\tincident  of\npresent day life, whether commercial or private, and  unless\nit  is specifically mentioned that payment must be  in\tcash\nthere is no reason why payment by cheque should not be taken\nto be due payment if the cheque is subsequently encashed  in\nthe ordinary course. [823D-E]\n    In\tthe instant case, there is nothing in the  order  of\nthis  Court providing that the deposit by the appellant\t was\nto  be\tin cash. The terms of the order dated  November\t 29,\n1979 are conclusive in this respect and it is the intent  of\nthat  order which will determine whether payment  by  cheque\nwithin the period stipulated in that order was excluded as a\nmode  in satisfaction of the terms of that order.  The\ttime\nfor payment of governed by the order of this Court. [823E-F]\n    2.\tPayment\t on the cheque being honoured  and  encashed\nrelates\t back to the date of the receipt of the cheque,\t and\nin  law the date of payment is the date of delivery  of\t the\ncheque. [823F]\n    <a href=\"\/doc\/641256\/\">Commissioner  of  Income Tax, Bombay  South,  Bombay  v.\nMessrs\tOgale Glass Works Ltd. Ogale Wadi, A.I.R.<\/a> 1954\tS.C.\n429 referred to.\n    In\tthe instant case, there is nothing to  suggest\tthat\nthe cheque was not honoured in due course and that the\tBank\nhad  at any time declined to honour it for want of funds  in\nthe ordinary cause. [823G]\n821\n    3.\tThe conditions set forth in the order of this  Court\ndated  29th  November, 1979 have been complied with  by\t the\nappellant  substantially and she is entitled to the  benefit\nof that order. [824C-D]\n\n\n\nJUDGMENT:\n<\/pre>\n<p>    CIVIL   APPELLATE\tJURISDICTION:  Civil   Appeal\t No.<br \/>\n111(N) of 1981.\n<\/p>\n<p>    From  the  Judgment and Order dated\t 21.10.1980  of\t the<br \/>\nMadras High Court in Application No. 2875 of 1980.<br \/>\n    Abdul Kareem, A.T.M. Sampath and P.N. Ramalingam for the<br \/>\nAppellant.\n<\/p>\n<p>    S.\tGovind Swaminathan, Rajendra Chowdhary,\t N.S.  Sivam<br \/>\nand K. Madhavan for the Respondents.\n<\/p>\n<p>    T.S.   Krishnamoorthi   Iyer,   S.\t Balakrishnan\t and<br \/>\nM.K.D. Namboodiri for the Intervener.\n<\/p>\n<p>The Judgment of the Court was delivered by<br \/>\n    PATHAK,  C J: The appellant herein filed Civil Suit\t No.<br \/>\n18  of 1968 in the High Court for specific performance of  a<br \/>\ncontract to sell the suit property by the respondent  herein<br \/>\nto her. A question which arose for decision was whether\t the<br \/>\nappellant should discharge the mortgage of the suit property<br \/>\ncreated\t by  the respondent in favour of  the  South  Indian<br \/>\nBank.  The High Court held that the appellant was liable  to<br \/>\ndischarge the mortgage and directed her to deposit in  Court<br \/>\na  sum\tof Rs.3,50,000 with interest for  the  purpose.\t The<br \/>\nappellant paid the amount direct to the mortgagee. The\tHigh<br \/>\nCourt  refused\tto accept the payment made directly  to\t the<br \/>\nmortgagee as due compliance with its decree and against that<br \/>\norder  of the High Court the appellant preferred  civil\t Ap-<br \/>\npeals  Nos.  1993-1994 of 1977. This Court disposed  of\t the<br \/>\nsaid appeals by the following order dated 29 November, 1979:\n<\/p>\n<blockquote><p>\t      &#8220;We  direct that a decree be passed  that\t the<br \/>\n\t      plaintiff-Appellant  do  deposit\twithin\t six<br \/>\n\t      months   from   today  the   entire   sum\t  of<br \/>\n\t      Rs.3,45,000  together with interest  due\tupto<br \/>\n\t      date at the rate of 11 per cent, together with<br \/>\n\t      an undertaking that she would give up all\t her<br \/>\n\t      rights under the mortgage decree passed in her<br \/>\n\t      favour  in C.S. No. 154 of 1968 except to\t the<br \/>\n\t      extent  of  the amount actually  paid  to\t the<br \/>\n\t      South  Indian Bank for taking the\t assignment.<br \/>\n\t      If these two<br \/>\n<span class=\"hidden_text\">\t      822<\/span><br \/>\n\t      conditions  are  fulfilled, the  appeals\twill<br \/>\n\t      stand allowed and a final decree for  specific<br \/>\n\t      performance  passed. In the event of  non-com-<br \/>\n\t      pliance  with either of these  conditions\t the<br \/>\n\t      appeals will stand dismissed with costs.&#8221;<\/p><\/blockquote>\n<p>    Purporting to comply with the above order of this Court,<br \/>\nthe appellant deposited a sum of Rs.2,42.822.19 on 11 April,<br \/>\n1980 in the High Court with the undertaking  to give up\t all<br \/>\nher  rights decreed in C.S. No, 15 of 1968 and\tfiled  C.M.P<br \/>\nNos. 2424 and 2425 of 1980 in the High Court for a  declara-<br \/>\ntion  that the payment as mentioned above was in  compliance<br \/>\nwith  the order of this Court and she claimed a set  off  of<br \/>\nthe  amount  of Rs.5,96,687.19 paid by her  earlier  to\t the<br \/>\nSouth Indian Bank which she was entitled to recover from the<br \/>\nrespondent  in accordance with the second condition  of\t the<br \/>\norder of this Court dated 29 November, 1979. The time  limit<br \/>\nfixed  for  fulfilling the two conditions set  out  in\tthis<br \/>\nCourt&#8217;s\t order dated 20 November, 1979 having fallen  on  29<br \/>\nMay, 1980 and the High Court not having passed orders on her<br \/>\nC.M.Ps. Nos. 2424-2425 of 1980 till then, she paid into\t the<br \/>\nHigh  Court a sum of Rs.6,02,000 on 29 May, 1980  by  cheque<br \/>\npurporting  to\tcomply with the first condition set  out  in<br \/>\nthis Court&#8217;s order aforesaid.\n<\/p>\n<p>    C.M.Ps.  Nos. 2424 and 2425 of 1980 filed by the  appel-<br \/>\nlant  in the High Court were dismissed by a Single Judge  by<br \/>\nan  order  dated 6 June, 1980 against  which  the  appellant<br \/>\npreferred Petitions for Special Leave to Appeal Nos.  947-48<br \/>\nof 1981. The appellant also filed another C.M.P. No. 2875 of<br \/>\n1980  in the High Court for a declaration that she had\tcom-<br \/>\nplied with the aforesaid order of this Court dated 29 Novem-<br \/>\nber.  1979  which  was dismissed by the\t High  Court.  Civil<br \/>\nAppeal No. 111 of 1981 has been preferred against the  judg-<br \/>\nment and order of the High Court in C.M.P. No. 2875 of 1980.<br \/>\n    The\t only question decided against the appellant by\t the<br \/>\nHigh Court in C.M.P. No. 2875 of 1980 was with regard to the<br \/>\ndeposit\t of the amount stipulated in the first condition  of<br \/>\nthe order of this Court dated 29 November, 1979. The crucial<br \/>\nissue  was whether the payment made by the appellant  on  29<br \/>\nMay,  1980 by cheque of the amount of  Rs.6,02,009  together<br \/>\nwith  the amount deposited earlier on 11 April, 1980 was  in<br \/>\ndue compliance of the first condition of this Court&#8217;s  Order<br \/>\ndated  29  November,  1979. The High Court  found  that\t the<br \/>\nsimple\tdelivery of the cheque on 29 May, 1980 could not  be<br \/>\ndeemed to be deposit of the specified sum of 29 May, 1980 in<br \/>\nsatisfaction  of the order of this Court when the amount  of<br \/>\nthe cheque had been realised only on 16 June, 1980. The High<br \/>\nCourt held that the appellant was bound to<br \/>\n<span class=\"hidden_text\">823<\/span><br \/>\ncomply with the Original Side rules of the High Court  which<br \/>\nprescribed  the procedure to be followed in  depositing\t the<br \/>\nmoney  in Court, and in particular, Order 31, rules 1  to  6<br \/>\nthereof\t which\twere aimed at securing the  deposit  of\t the<br \/>\nmoney  in the Reserve Bank of India to the credit of a\tpar-<br \/>\nticular proceeding on or before the specified date.  Accord-<br \/>\ningly, the High Court refused to grant the declaration\tthat<br \/>\nthe  appellant\thad complied with the order  of\t this  Court<br \/>\ndated 29 November, 1979.\n<\/p>\n<p>    It\tis  contended before us on behalf of  the  appellant<br \/>\nthat the cheque for Rs.6,02,000 was tendered in Court on  29<br \/>\nMay,  1980  and that it was duly honoured by  the  Bank\t and<br \/>\nmoney  was realised under the cheque, and therefore it\tmust<br \/>\nbe taken that payment had been effected by the appellant  on<br \/>\n29 May, 1980 within the time stipulated by this Court in its<br \/>\norder  dated  29 November, 1979. <a href=\"\/doc\/641256\/\">In Commissioner  of  Income<br \/>\nTax,  Bombay South, Bombay v. Messrs Ogale Glass Works\tLtd.<br \/>\nOgale  Wadi, A.I.R.<\/a> 1954 S.C. 429 it was laid down  by\tthis<br \/>\nCourt  that payment by cheque realised subsequently  on\t the<br \/>\ncheque being honoured and encashed relates back to the\tdate<br \/>\nof the receipt of the cheque, and in law the date of payment<br \/>\nis the date of delivery of the cheque. Payment by cheque  is<br \/>\nan ordinary incident of present-day life, whether commercial<br \/>\nor  private,  and unless it is specifically  mentioned\tthat<br \/>\npayment\t must be in cash there is no reason why\t payment  by<br \/>\ncheque\tshould not be taken to be due payment if the  cheque<br \/>\nis  subsequently encashed in the ordinary course.  There  is<br \/>\nnothing in the order of this Court providing that the depos-<br \/>\nit  by\tthe appellant was to be in cash. The  terms  of\t the<br \/>\norder dated 29 November, 1979 are conclusive in this respect<br \/>\nand  it\t is the intent of that order  which  will  determine<br \/>\nwhether\t payment by cheque within the period  stipulated  in<br \/>\nthat  order  was excluded as a mode in satisfaction  of\t the<br \/>\nterms of that order. The time for payment is governed by the<br \/>\norder of this Court.\n<\/p>\n<p>    It is alleged on behalf of the respondent that there was<br \/>\nno  money on the date of delivery of the cheque\t to  support<br \/>\npayment of it and that it was subsequently when arrangements<br \/>\nwere made that the cheque was realised. Now, the High  Court<br \/>\nhas  not found that if the cheque was presented for  encash-<br \/>\nment on the date it was delivered the cheque would not\thave<br \/>\nbeen  encashed.\t There is nothing to suggest also  that\t the<br \/>\ncheque was not honoured in due course and that the Bank\t had<br \/>\nat  any time declined to honour it for want of funds in\t the<br \/>\nordinary  course. In any event, there is nothing to  suggest<br \/>\nthat, under the arrangements made for payment of the cheque,<br \/>\neven  if it had been encashed on the date it  was  delivered<br \/>\nthe cheque would not have been encashed. There<br \/>\n<span class=\"hidden_text\">824<\/span><br \/>\nis  no\tfinding by the High Court that on 29 May,  1980\t the<br \/>\ncheque\twould  not have been realised. That  being  so,\t the<br \/>\nquestion  whether the appellant had wrongly stated that\t her<br \/>\ncounsel had offered to pay cash to the High Court office  on<br \/>\n29 May, 1980 ceases to be relevant. We also see no substance<br \/>\nin  the\t objection taken before the High Court that  in\t the<br \/>\nletter\tdated  29  May, 1980 addressed by  counsel  for\t the<br \/>\nappellant forwarding the cheque for Rs.6,02,000 there was  a<br \/>\nrequest\t for the return of the cheque in case it  was  found<br \/>\nthat  the appellant was entitled to the set-off\t claimed  by<br \/>\nher.  The application of the appellant\tclaiming  adjustment<br \/>\nwas pending in Court, and no conclusion can be drawn against<br \/>\nher  on\t the ground that she had requested a return  of\t the<br \/>\ncheque\tin the event of the adjustment being allowed by\t the<br \/>\nCourt.\n<\/p>\n<p>    We are of the view that the conditions set forth in\t the<br \/>\norder of this Court dated 29 November, 1979 in the facts and<br \/>\nthe circumstances of the case have been complied with by the<br \/>\nappellant  substantially and she is entitled to the  benefit<br \/>\nof that order.\n<\/p>\n<p>    The appeal is allowed, the order dated 21 October,\t1980<br \/>\nof  the High Court is set aside and the application  by\t the<br \/>\nappellant  for a direction to the respondent to execute\t the<br \/>\nsale deed in her favour is allowed. In the circumstances  of<br \/>\nthe case, there is no order as to costs.\n<\/p>\n<pre>N.V.K.\t\t\t\t\t    Appeal allowed.\n?\n<span class=\"hidden_text\">825<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India K. Saraswathy Alias K. Kalpana &#8230; vs P.S.S. Somasundaram Chettiar on 1 May, 1989 Equivalent citations: 1989 AIR 1553, 1989 SCR (2) 819 Author: R Pathak Bench: Pathak, R.S. (Cj) PETITIONER: K. SARASWATHY ALIAS K. KALPANA (DEAD) BY LRS. Vs. RESPONDENT: P.S.S. SOMASUNDARAM CHETTIAR DATE OF JUDGMENT01\/05\/1989 BENCH: PATHAK, R.S. (CJ) [&hellip;]<\/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":[30],"tags":[],"class_list":["post-229102","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>K. Saraswathy Alias K. Kalpana ... vs P.S.S. 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