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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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Acts
  • section 258 of the Civil Procedure Code [now Order XXI, rule 2(1)]
  • Order XXI, rule 2(1). Section 20 of the Limitation Act
  • clause (5) of Article 182 of the Limitation Act,
  • Article 182(5) of the Limitation Act.
  • Article 181 of the Limitation Act,
  • Article 174 of the Limitation Act
  • SECTION 20 LIMITATION ACT
  • clause (2) of Order XXI, rule 2,
  • Order XXI, rule 1(1)(b),
  • Order XXI, rule 2(3),
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • section 258 of the Civil Procedure Code [now Order XXI, rule 2(1)]
  • Order XXI, rule 2(1). Section 20 of the Limitation Act
  • clause (5) of Article 182 of the Limitation Act,
  • Article 182(5) of the Limitation Act.
  • Article 181 of the Limitation Act,
  • Article 174 of the Limitation Act
  • SECTION 20 LIMITATION ACT
  • clause (2) of Order XXI, rule 2,
  • Order XXI, rule 1(1)(b),
  • Order XXI, rule 2(3),
Smart Summary

Structured Summary of the Judgment (Dhavle, J.)

Factual and Procedural Background

The decree-holder (appellant) obtained a money decree for Rs. 7,056 and odd against the respondent's father (the judgment-debtor) on 26 June 1936. The appellant filed an application for execution of that decree on 21 May 1940. The judgment-debtor objected that the execution application was barred by limitation. The appellant's defence to the objection was that a part payment of Rs. 1,600 was made by the judgment-debtor on 15 December 1937, and that this payment, it was contended, brought the execution petition within time.

The Subordinate Judge of Ranchi upheld the judgment-debtor's objection and dismissed the execution application as time-barred. The lower Court accepted evidence that a payment had been made on 15 December 1937 but found that: (a) the payment exceeded interest due to that date; (b) there was no proof how the payment was appropriated by the decree-holder; and (c) there was no acknowledgment of the payment in the handwriting of, or signed by, the person who made it. On these findings the lower Court held the payment did not satisfy section 20 of the Limitation Act and that the decree-holder's certification of the payment in his execution petition was not a valid step-in-aid of execution to save limitation. The present appeal is from that order.

Legal Issues Presented

  1. Whether the execution petition filed on 21 May 1940 was barred by limitation despite the alleged part payment on 15 December 1937.
  2. Whether a payment made by the judgment-debtor, but not evidenced by appropriation or an acknowledgment in the judgment-debtor's handwriting or signature, satisfies section 20 of the Limitation Act so as to give the decree-holder a fresh period of limitation.
  3. Whether certification by the decree-holder (by himself certifying a payment in an execution petition or otherwise) constitutes a "step-in-aid of execution" under the Limitation Act (notably Article 182(5) / related provisions) and thereby restarts or extends the limitation period.

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that the application for execution made on 21 May 1940 was in time because a part payment of Rs. 1,600 had been made on 15 December 1937, which the appellant said should operate to extend or restart limitation.
  • The appellant relied on precedents such as Sonya Bisoi v. Ananda Padhano and Maung Law Sun v. Maung Po Thein to support his position that certification or proof of payment could save an execution petition from the time bar.
  • Implicit in the citations was the submission that certification by the decree-holder could be treated as a step-in-aid of execution (or that proof of payment sustained the previous execution petition), but the opinion records that these authorities did not ultimately assist the appellant on the facts or law in this case.

Judgment-Debtor's / Respondent's Position

  • The judgment-debtor objected that the execution application was barred by time and therefore must be dismissed.
  • On the facts found by the lower Court (and accepted by this Court), the payment of 15 December 1937 lacked proof of appropriation and lacked an acknowledgment in the judgment-debtor's handwriting or signature; accordingly the payment did not meet the conditions of section 20 of the Limitation Act and could not extend limitation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Amarkrishna Chaudhuri v. Jagatbandhu Biswas (Full Bench) Held that certification by the decree-holder is not a step-in-aid of execution for restarting limitation under Article 182(5). The Court followed this Full Bench decision and treated it as authority that certification by the decree-holder does not, by itself, extend the limitation period.
Sonya Bisoi v. Ananda Padhano Confirmed it was open to a decree-holder to prove a past payment (1929) supported by a receipt to save an earlier execution petition from time bar. The Court observed that nothing in that case helped the appellant on the facts here; the payments in Sonya Bisoi were supported by a receipt written by the judgment-debtors.
Elahi Bux… v. Nawab Lall…. Considered instalment decree and that proof of earlier payments could be used to resist a limitation objection to a later execution application. The opinion treats this decision as consistent with Sonya Bisoi and not supportive of the view that mere certification by the decree-holder restarts limitation.
Maung Law Sun v. Maung Po Thein (Rangoon High Court single Judge) Held (following some Calcutta authorities) that an application to certify is a step-in-aid of execution and may give a fresh starting point under Article 182(5). The Court noted this view but explained it was overturned or doubted by later Rangoon authority and by the Privy Council decision in Raja Shri Prakash Singh; it was therefore not followed.
Maung Tun Hlaing v. U. Aung Gyaw (Rangoon High Court) Held that the earlier single-judge view (Maung Law Sun) was "no longer good" after Raja Shri Prakash Singh (Privy Council). Used to show that the view that certification is a step-in-aid has been displaced by higher authority.
Raja Shri Prakash Singh v. Allahabad Bank, Limited (Privy Council) Interpreted the rules to require certification to be made within a reasonable time and indicated that certification by the decree-holder is not an application for which limitation is prescribed (i.e., it is not a step-in-aid that restarts limitation under Article 182(5)). The Court relied on this Privy Council authority as decisive against treating certification by the decree-holder as a step-in-aid of execution that would restart limitation.
Adya Prasad Singh v. Lal Girjesh Bahadur Followed the Full Bench view (Amarkrishna) that certification is not a step-in-aid of execution. Cited as an example of subsequent authority following Amarkrishna and the Privy Council line.
President, Union Board, Pentapadu v. Sreemath Thirumala Venkata Srinivasacharyulu Ayyavarlu (Madras) Madras decision that gave up the old view that certification is a step-in-aid in view of Raja Shri Prakash Singh. Noted as showing other High Courts have abandoned the view that certification by decree-holder restarts limitation.
Sheo Sahay v. Jamuna Prasad Singh In this Court an earlier decision considered some actions by the decree-holder to remove obstacles as steps-in-aid of execution. The Court observed other Courts have not always followed that approach and contrasted it with the later trend repudiated by Raja Shri Prakash Singh and Amarkrishna.
Jagdeo Narain Singh v. Rani Bhubaneshwari Kuer Considered the necessity (or lack thereof) that actions by the decree-holder be taken in the course of execution proceedings to attract Article 182(5). Referred to as an example of differing approaches in earlier decisions; not relied on to support the appellant.
Tarini Das Bandyopadhya v. Bishtoo Lal Mukhopadaya One of the origins of the view that certification by the decree-holder is a step-in-aid of execution (based on the idea of an arrangement between parties and the certificate's effect). Cited as tracing the historical origin of the older view, which subsequent higher authority has displaced.
Sujan Singh v. Hira Singh (Full Bench, Allahabad High Court) Full Bench followed the view that certification under Order XXI, rule 2(1) is an act by the decree-holder asserting enforcement of the decree and may have the effect of extending limitation in certain circumstances. Noted as part of the body of authorities advocating the old view that certification can affect limitation, but the Court explained that later authorities have rejected that categorical effect.
Fukeer Chand Bose v. Muddun Mohun Ghose (Full Bench) Observed that if the plaintiff certifies that he has been paid, he must be bound by it; highlighted the protective object of certification for the judgment-debtor. Used to underline the Court's reasoning on the purpose of certification and why the Legislature would not have intended certification alone to create a fresh limitation period.

Court's Reasoning and Analysis

The Court's analysis proceeded in several linked steps, each grounded in the statutory text and the authorities cited:

  1. Factual findings from the lower Court were accepted: a payment of Rs. 1,600 on 15 December 1937 was proved, but there was no evidence of (a) how the payment was appropriated by the decree-holder, and (b) any acknowledgment of the payment in the handwriting of, or signed by, the person who made it.
  2. Section 20 of the Limitation Act imposes specific conditions for payments made by the judgment-debtor to give rise to a fresh period of limitation, including that an acknowledgment of payment should appear in the judgment-debtor's handwriting or be signed by him. Because those conditions were not satisfied on the facts, the 1937 payment did not extend the limitation period under section 20.
  3. The Court examined whether certification by the decree-holder (in this case the decree-holder's certification of the payment in his execution petition of May 1940) could, by itself, be a "step-in-aid of execution" that restarts limitation under Article 182(5) (or analogous provisions).
  4. The Court surveyed the authorities and concluded that earlier decisions which treated certification by the decree-holder as a step-in-aid (and thus capable of restarting limitation) have been overtaken or rejected by later and higher authority — notably the Privy Council decision in Raja Shri Prakash Singh and the Full Bench decision in Amarkrishna Chaudhuri. The Court relied on the reasoning in those higher authorities that:
    • Certification by the decree-holder is intended for the protection of the judgment-debtor and facilitates the court's recognition of payments made out of court; it is not naturally an "application" to which a period of limitation attaches for the purposes of Article 182(5).
    • The Legislature's prescription in section 20 (requiring acknowledgment in the judgment-debtor's handwriting or signature) makes it improbable that certification by the decree-holder alone was intended to produce a fresh period of limitation in favour of the decree-holder.
    • The rules contemplate that certification should be made within a reasonable time and provide specific remedies for a judgment-debtor if the decree-holder fails to certify; given these safeguards, certification by the decree-holder is not the kind of "timely and proper application" envisaged by Article 182(5) for extending limitation.
  5. The Court thus concluded that the decree-holder's certification in May 1940 had no legal effect in saving limitation, even though the court would be bound to record a payment if properly certified. The certification did not transform the 15 December 1937 payment into an event restarting limitation because the statutory conditions of section 20 were not met and because certification is not a step-in-aid that restarts limitation.

Holding and Implications

Holding: The Court dismissed the appeal and held that the execution petition was time-barred. The Court concluded that the payment of 15 December 1937 did not satisfy section 20 of the Limitation Act and therefore did not extend the period of limitation, and that the decree-holder's certification in May 1940 did not save the petition from the time bar.

Direct consequences and costs: The appeal was dismissed with costs.

Implications: The decision applies established authority (notably the Privy Council in Raja Shri Prakash Singh and the Full Bench in Amarkrishna Chaudhuri) to confirm that:

  • Payments by a judgment-debtor will only give rise to a fresh period of limitation if they meet the conditions of section 20 (including the required acknowledgment), and mere certification by the decree-holder does not substitute for those conditions.
  • Certification by the decree-holder is not to be treated as a step-in-aid of execution that will itself restart or extend the limitation period under Article 182(5); certification is principally a mechanism for recording payment for the protection of the judgment-debtor and for the Court's record-keeping.
  • No novel legal principle was established by this judgment; the Court applied and followed existing higher authority to resolve the limitation question against the appellant on the facts found below.

This summary is confined strictly to matters stated in the provided opinion and does not add or infer facts or holdings beyond the text of the judgment.

    Ganjhoo Deo Mohan Singh v. Hari Sahu

    Dhavle, J.:— This is an appeal by a decree-holder from an order of the Subordinate Judge of Ranchi, upholding the judgment-debtor's objection that the application for execution made by the former was barred by time and accordingly dismissing that application.

    The appellant obtained a money decree for Rs. 7,056 and odd against the objector, respondent's father, on the 26th of June, 1936. He applied for execution of this decree on the 21st of May, 1940, and his contention was that this application was in time because on the 15th of December, 1937, the original judgment-debtor had made a part payment of Rs. 1,600. The lower Court has accepted the evidence given on behalf of the decree-holder in support of this payment, and has found that this payment exceeded the interest due up to that time, but that there was no proof by the decree-holder of how he bad appropriated the payment, nor any acknowledgment of the payment in the handwriting of or in a writing signed by the person who had made it. The payment, therefore, did not give rise to a fresh period of limitation under section 20 of the Limitation Act; and following the Full Bench decision in Amarkrishna Chaudhuri v. Jagatbandhu Biswas, the learned Subordinate Judge held that the decree-holder's certification of the payment in his execution petition was not a step-in-aid of execution. The learned advocate for the appellant has drawn attention to Sonya Bisoi v. Ananda Padhano, which was also referred to below, but it does not seem that anything was said in that case which can help the appellant. What was decided in that case was that it was open to the decree-holder, even after an execution petition of 1934, to prove a payment made by some of the judgment-debtors in 1929, which was supported by a receipt written by them and which saved the decree-holder's previous execution petition of 1932 from the time bar. This view was in accordance with the decision in Elahi Bux… v. Nawab Lall…., the case of an instalment decree with the usual provision for default. Execution was applied for in that case on the 27th of September, 1917, on the footing that the judgment-debtor had only defaulted in paying the instalment fixed for the 11th of April, 1915. The judgment-debtor, however, denied paying an earlier instalment that was due on the 11th of April, 1914, and contended that it was not open to the decree-holder to certify the alleged payment of the 11th of April, 1914, more than three years afterwards as he had done by his execution petition itself. This contention was overruled on the ground that no period of limitation is prescribed for certification by the decree-holder, and the learned Judges held that it is open to the decree-holder to make the certificate at any time after the alleged payment. There is nothing in this decision or in Sonya Bisoi's case in support of the contention that certification by the decree-holder is a step-in-aid of execution, or will by itself operate to save limitation. The learned advocate has cited Maung Law Sun v. Maung Po Thein, in which a single sitting Judge of the Rangoon High Court held upon certain Calcutta authorities that “an application to certify is a step-in-aid of execution” and that such an application may be made by the decree-holder under Article 181 of the Limitation Act, at any time within three years from the dates of payments if made by the judgment-debtor in time, and will afford the decree-holder a fresh starting point for limitation within the meaning of Article 182(5) of the Limitation Act. This view, however, was held by two learned Judges of the same High Court in Maung Tun Hlaing v. U. Aung Gyaw to be “no longer good in the face of the recent decision of their Lordships of the Privy Council in Raja Shri Prakash Singh v. Allahabad Bank, Limited.” The old view that certification by the decree-holder is a step-in-aid of execution and provides a fresh starting point for limitation was overruled for a similar reason by the Full Bench in Amarkrishna's case (already referred to), which was followed in Adya Prasad Singh v. Lal Girjesh Bahadur. President, Union Board, Pentapadu v. Sreemath Thirumala Venkata Srinivasacharyulu Ayyavarlu is a Madras decision in which the same old view was given up in view of the decision in Raja Shri Prakash Singh's case, and, so far as I am aware, no Court has since Ram Shri Prakash's case regarded certification by the decree-holder as a step-in-aid of execution giving rise to a fresh period of limitation. The learned advocate has not brought to our notice any decision, new or old, of this Court in which certification by the decree-holder was itself regarded as a step-in-aid of execution, though other Courts have not always regarded “any step taken by the decree-holder to remove an obstacle thrown by the judgment-debtor in the way of the execution of the decree” as a step-in-aid of execution, as was done in this Court in Sheo Sahay v. Jamuna Prasad Singh*, nor have they always considered it unnecessary, as was done in Jagdeo Narain Singh v. Rani Bhubaneshwari Kuer, in order to attract the operation of clause (5) of Article 182 of the Limitation Act, that the action taken by the decree-holder should be taken in the course of execution proceedings actually pending. The view that certification by the decree-holder is a step-in-aid of execution seems to have started with Tarini Das Bandyopadhya v. Bishtoo Lal Mukhopadaya, where it was rested on the ground that the judgment-creditor certifies in consequence of an arrangement as to payment between him and the judgment-debtor, because if he had not certified, the judgment-debtor could under the law compel him to do so, and that the effect of the certificate is to satisfy the decree so far as the sum certified is concerned. This was followed by a Full Bench of the Allahabad High Court in Sujan Singh v. Hira Singh in which Mahmood, J. considered that in certifying partial satisfaction under section 258 of the Civil Procedure Code [now Order XXI, rule 2(1)] the decree-holder “is taking a step by which he asserts enforcement of his decree in the exercise of those powers which are vested in him because he is a decree-holder. But even payments out of Court, such as may be made by the judgment-debtor to the decree-holder under Order XXI, rule 1(1)(b), do not per se advance execution, but operate—at any rate, primarily—to reduce the judgment-debtor's liability in execution, and this too, only if they are taken out of the bar imposed by Order XXI, rule 2(3), that is to say, if they are certified by the decree-holder under clause (1) of this rule, or if action is taken by the judgment-debtor under clause (2) of the same rule to have them “recorded as certified”. It is only in certain special circumstances that such payments operate to extend the ordinary period of limitation for execution. In instalment decrees, for instance, where the decree-holder is to take out execution only after one or more defaults, the payment of each instalment will postpone the starting point for limitation. Payments coming within section 20 of the Limitation Act will also entitle the decree-holder to a fresh period of limitation. But even in such cases Order XXI, rule 2(3), will apply, that is to say, the decree-holder will derive no advantage from such payments as regards limitation unless he certifies them to the executing Court. As was observed in Raja Shri Prakash Singh's case, the rules contemplate that the decree-holder, to whom a payment has been made by the judgment-debtor out of Court, should certify such payment to the Court within a reasonable time in order that it might be recorded by the Court, and the judgment-debtor is protected by the provision that in the event of the decree-holder failing to certify the payment to the Court, the judgment-debtor may apply to the Court for a notice to issue to the judgment-creditor to show cause why the payment should not be recorded as certified, provision being made by Article 174 of the Limitation Act that such application by the judgment-debtor must be made within 90 days of the time when payment was made; in view of these provisions, apparently, it was not thought necessary to provide any specific time within which the judgment-creditor must certify the payment under Order XXI, rule 2(1). section 20 of the Limitation Act which entitles the decree-holder to a fresh period of limitation from payments made by the judgment-debtor lays down several conditions for the protection of the judgment-debtor, and in particular, requires that an acknowledgment of such payment should appear in the hand-writing of the judgment-debtor or should be signed by him. This makes it highly improbable that the Legislature should have intended to let the decree-holder have a fresh period of limitation from his certification, while laying down no period of limitation at all for his doing so. The object of certification appears to have been the benefit of the judgment-debtor; as Peacock, C.J said in the Full Bench case of Fukeer Chand Bose v. Muddun Mohun Ghose, “if the plaintiff comes in at any time and certifies that he has been paid, he must be bound by it” and certification by the decree-holder or its equivalent when the judgment-debtor moves the court under clause (2) of Order XXI, rule 2, seems to be no more than the sine qua non for the recognition by the Court executing the decree of the payment in question. But even apart from this consideration, it can no longer be said, in view of the decision in Raja Shri Prakash Singh's case, that certification by the decree-holder involves any application by him for which any limitation is prescribed, while it is scarcely conceivable that an application for which no limitation is prescribed should come within Article 182(5) of the Limitation Act. As Rankin, C.J said in Amarkrishna Chaudhuri's case, the intention of this clause is “that if within the first period of three years (after a decree under execution) an application is made to the Court for execution or to take some step-in-aid of execution, another period of three years will become available (to the decree-holder): and if within that time another such application is made, then a further three years will become available, and so on. Each timely and proper application is to have the effect of an extension for three more years. It is to introduce an irrational surd into the process to attach this consequence to an act of the decree-holder which need not be done in any given time”.

    The result is that, in my opinion, the lower Court was right in holding that the appellant's execution petition was barred by time: the payment of the 15th of December, 1937, did not comply with the requirements of section 20 of the Limitation Act, and therefore, did not extend limitation, though the Court was bound to record it on certification by the decree-holder even after the expiry of three years from the decree but the certification of May, 1940, had no effect whatsoever in saving limitation. I would accordingly dismiss this appeal with costs.

    Harries, C.J:— I agree.

    S.A.K
    Appeal dismissed.

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    Comments

    Ganjhoo Deo Mohan Singh v. Hari Sahu
    (Feb 20, 1942)