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Smart Summary

Factual and Procedural Background

One Ram Narain was declared insolvent by the Court of Small Causes, Cawnpore, and the respondent was appointed receiver of his estate. On the respondent's application under section 37 of the Provincial Insolvency Act certain transfers made by the insolvent in favour of the applicant were set aside by an order dated 18 March 1911. The applicant (the transferee) presented an appeal to the District Judge on 26 April 1911.

The District Judge held, following Knox and Piggott, JJ., in Jugal Kishore v. Gur Narain, that the applicant was not entitled to the benefit of section 12 of the Limitation Act to deduct the time spent in obtaining a copy of the order of the court of first instance. Accordingly the District Judge dismissed the appeal. The matter before the present Court is an application for revision of the District Judge's order; it has been treated as an application under the proviso to section 46(1) of the Provincial Insolvency Act.

Legal Issues Presented

  1. Whether the applicant was entitled under section 12 of the Limitation Act to deduct the time taken in obtaining a copy of the order of the court of first instance for the purpose of computing limitation for an appeal under section 46 of the Provincial Insolvency Act.
  2. Whether the Provincial Insolvency Act is a "special law" within the meaning of section 29 of the Limitation Act.
  3. If the Provincial Insolvency Act is a "special law," whether the application of section 12 of the Limitation Act to an appeal under section 46 of the Insolvency Act would "affect or alter" the period of limitation prescribed for that appeal within the meaning of section 29 of the Limitation Act.

Arguments of the Parties

Applicant's Arguments

  • The Provincial Insolvency Act is not a "special law" within the meaning of section 29 of the Limitation Act, and therefore the general provisions of the Limitation Act (including section 12) apply to appeals under the Provincial Insolvency Act.
  • Even if the Provincial Insolvency Act is a "special law," applying section 12 of the Limitation Act to the appeal does not, within the meaning of section 29, "affect or alter" the period prescribed for an appeal under section 46 of the Provincial Insolvency Act; consequently the time spent procuring a copy of the order should be deducted in computing limitation.

Respondent's Arguments

The opinion does not contain a detailed account of the respondent's legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jugal Kishore v. Gur Narain (Knox & Piggott, JJ.) Held that the applicant was not entitled to benefit of section 12 of the Limitation Act in the context at issue. The District Judge had followed this decision to dismiss the applicant's appeal; the present Court considered this decision but found it conflicted with other authorities and declined to follow it.
Beni Prasad v. Dharaka Rai (Strachey, C.J., and Banerji, J.) Decision proceeded on a special line of reasoning; interpreted the applicability of general Limitation Act provisions to special Acts. The Court considered this decision relevant and noted Knox & Piggott distinguished it; the present Court treated the reasoning in Beni Prasad as supporting application of general Limitation Act provisions unless the special Act is a complete code.
Strachey, C.J. and Banerji, J., I.L.R. 23 All., 277 Held that section 5 of the Limitation Act of 1877 did not, within the meaning of section 6, "affect or alter" a period prescribed by the N.W.P. Rent Act of 1881; and that the Rent Act was not a complete code making general Limitation Act inapplicable. The Court relied on this construction to support the proposition that general Limitation Act provisions can apply to special Acts unless those Acts are complete codes.
Joti Sarup v. Ram Chandar Singh (Banerji, J.) Decision concerning construction of Limitation Act in relation to N.W.P. Rent Act 1881. The present Court noted this decision conflicted with Knox & Piggott and supported the view that general Limitation provisions apply unless the special Act is a complete code.
Poulson v. Modhdoosoodun Paul Chowdhry Full Bench of Calcutta held that Act X of 1859 (rent) was not governed by the general Limitation Act XIV of 1859 because Act X formed a special and complete code for its subject. The Court cited this history to illustrate situations where a special Act was held to be a complete code and thus excluded the general Limitation Act; used as contrast to determine whether Provincial Insolvency Act is a complete code.
Unnoda Persaud Mookerjee v. Krhto Coomar Moitro Referenced in relation to the Privy Council's approval of the Full Bench's view that Act X formed a special and complete code. Used as part of legislative and judicial history showing that some special Acts have been treated as complete codes and thereby insulated from the general Limitation Act provisions.
Nagendro Nath Mullick v. Mathura Mohan Parhi (Full Bench) Held section 14 of the Limitation Act of 1877 did not apply to suits under Act X of 1859 (special rent Act). Cited to exemplify a case where general Limitation Act provisions were held inapplicable because the special Act was a complete code.
Girija Nath Roy Bahadur v. Patani Bibee Mentioned alongside decisions treating the rent Act as special/complete for Limitation Act purposes. Referenced as part of the body of authority on the relation between special Acts and the general Limitation Act.
Behari Lall Mookerjee v. Mungolanath Mookerjee Section 12 of the Limitation Act of 1877 held to cover an application for review under the Bengal Rent Act of 1869. Used as authority supporting the proposition that general Limitation Act provisions may apply to proceedings under special Acts that are not complete codes.
Golap Chand Nowluckha v. Krishto Chunder Dass Biswas Section 5 of the Limitation Act of 1877 held to apply to a suit under the Bengal Rent Act of 1869. Supported the Court's view that general Limitation provisions were applicable in some cases under special Acts.
Nijabutoolla v. Wazir Ali Held that sections 5 and 14 of the Limitation Act of 1877 applied to suits under section 77 of the Registration Act. Cited as part of a line of authority holding general Limitation provisions applicable to certain special Act proceedings.
Khetter Mohun Chuckerbutty v. Dinabashy Shaha Held that sections 5 and 14 of the Limitation Act applied to suits under section 77 of the Registration Act. Also part of the authority supporting application of general Limitation provisions to proceedings under special Acts.
Guracharya v. The President of the Belgaum Town Municipalities (Bombay High Court) Approved and followed the decisions applying Limitation Act provisions to proceedings under other Acts (Registration Act related decisions). Referenced to show acceptance of the line of authority in Bombay.
Case reported in I.L.R., 10 Mad., 210 (reference to a Madras Forest Act decision) Held section 5 of the Limitation Act of 1877 applied to an appeal under the Madras Forest Act. Used to show that various high courts had applied general Limitation provisions to appeals under other Acts.
Kullayappa v. Lakshmipathi Held section 14 of the Limitation Act of 1877 applied to a suit under the Madras Rent Recovery Act, 1865. Another example cited where general Limitation provisions were applied to special Act proceedings.
Veeramma v. Abbiah (Muthusami Ayyar, J.) Held general provisions of the Limitation Act, 1877, applied to proceedings under other Acts prescribing special periods unless those Acts were complete codes. This view was relied upon by the present Court as a sound general principle and noted as accepted by other judges in later cases.
Abdul Hakim v. Latif-un-nessa Followed Veeramma in the conclusion that general Limitation provisions did not apply to certain Registration Act proceedings (as recorded). Cited as part of the divergent authority on application of Limitation Act provisions.
Suraj Bali Prasad v. Thomas Held that section 5 of the Limitation Act of 1877 applied to a suit under the Registration Act. Used to illustrate conflicting decisions on whether the Registration Act is a complete code or not.
Land acquisition case reported in I.L.R., 30 Bom., 275 (Chandavarkar, J.) Expressed that it was a moot question whether the general provisions of the Limitation Act could be applied to periods prescribed by other Acts; followed a previous Bombay decision. Cited to show that not all jurists accepted the view that general Limitation provisions always apply to special Acts.

Court's Reasoning and Analysis

The Court proceeded by first identifying the practical consequence: the applicant's appeal would be within time only if section 12 of the Limitation Act allowed deduction of the time taken to procure a copy of the order of the court of first instance. The District Judge had followed Knox & Piggott's decision in Jugal Kishore to deny that benefit; the present Court examined whether that approach was correct in law.

The Court examined the meaning of the phrase "special law" as used in section 29 of the Limitation Act. It observed that the Legislature had not defined "special law" for purposes of the Limitation Act (and that definitions in other statutes such as the Penal Code are not necessarily relevant). The Court concluded that, in ordinary understanding, a "special law" means an Act dealing with a particular subject, and found the Provincial Insolvency Act to be a special law because it creates special jurisdiction and deals with a specialised branch of the law.

Turning to the legislative history, the Court traced the evolution from Act XIV of 1859 through the Limitation Acts of 1871 and 1877 to the present Act (section 29). It noted a material change in language introduced in 1877: the provision referred to "special or local law" and used the words "affect or alter" the period so prescribed. The Court read this change as an intention to limit the operation of special or local laws to the periods prescribed by them, with the implication that the words "affect or alter" were meant to refer to the prescribed period itself rather than the manner of computing it.

The Court reviewed a substantial body of authority, identifying two competing lines of judicial thought:

  • A line holding that the general provisions of the Limitation Act apply to proceedings under other Acts prescribing special periods, unless those Acts constitute complete codes in themselves (Veeramma v. Abbiah; Beni Prasad; Joti Sarup; Behari Lall Mookerjee; Golap Chand Nowluckha; Nijabutoolla; Khetter Mohun; and others).
  • A contrary line expressing the view that applying the general provisions of the Limitation Act to periods fixed by other Acts would "affect or alter" those periods (Shephard, J. in I.L.R. 18 Mad. 99; Chandavarkar, J. in I.L.R. 30 Bom. 275), or treating certain special Acts as complete codes (Poulson and related Calcutta decisions approved by Privy Council) so as to render the general provisions inapplicable.

After weighing the authorities, the Court adopted the construction that the general provisions of the Limitation Act apply to cases under other Acts prescribing special periods of limitation unless those Acts are intended to be complete codes in themselves to which the general provisions could not be applied without incongruity. The Court found this construction supported by legislative history and by practical considerations: many special Acts adopt or make applicable the Code of Civil Procedure, which in practice requires an appellant to procure a copy of the decree or order, and it is reasonable to suppose the Legislature intended appellants reasonable time to procure such copies. The Court also emphasised that the general Limitation Act is founded on equitable considerations that equally apply to periods prescribed by special Acts.

The Court then applied that principle to the Provincial Insolvency Act. It concluded that the Provincial Insolvency Act is not a complete code: to determine procedure in original, appellate or revisional proceedings one must refer to the Code of Civil Procedure. The Court considered the object of section 47 of the Insolvency Act and read sub-section (4) of section 46 as not having been inserted for the purpose of rendering the general Limitation Act inapplicable.

Consequently, the Court held that section 12 of the Limitation Act applied to the appeal in question, that the appeal was within time when the period for procuring a copy was excluded under section 12, and that the District Judge's order dismissing the appeal on limitation grounds was therefore unsound.

Holding and Implications

Core Ruling: APPEAL ALLOWED. The Court held that section 12 of the Limitation Act applied to the appeal presented by the applicant to the District Judge and that, on that basis, the appeal was within time.

Direct consequences and immediate implications:

  • The Court set aside the order of the District Judge that had dismissed the appeal on limitation grounds.
  • The case was remitted to the District Judge to be disposed of according to law.
  • Costs in this Court were ordered to be costs in the cause.

The opinion reasons about and applies existing principles concerning the relationship between the general Limitation Act and special Acts; it does not assert that it is establishing a novel general rule beyond the specific application here. The Court's decision therefore directly affects the parties by restoring the applicant's right to have the District Judge deal with the appeal on its merits, and it clarifies (in this context) that the Provincial Insolvency Act is not to be read as a complete code excluding the operation of section 12 of the Limitation Act.

Appeal allowed.

    Dropadi (Petitioner) v. Hira Lal (Opposite Party).

    Richards, C.J and Karamat Husain and Chamier, JJ.:— One Ram Narain was declared to be insolvent by the Court of Small Causes, Cawnpore, and the respondent was appointed to be receiver of his estate. On the application of the respondent, under section 37 of the Provincial Insolvency Act, certain transfers made by the insolvent in favour of the applicant were set aside by an order dated the 18th of March, 1911. The applicant presented an appeal to the District Judge on the 26th of April, 1911. His appeal was within limitation only if he was entitled under section 12 of the Limitation Act to deduct the time spent by him in obtaining a copy of the order of the court of first instance. The District Judge, following the decision of Knox and Piggott, JJ., in Jugal Kishore v. Gur Narain, held that the applicant was not entitled to the benefit of section 12 of the Limitation Act. Accordingly he dismissed the appeal. This is an application for revision of the order of the District Judge. It has been treated by the office as a first appeal from an order, but it is an application under the proviso to section 46(1) of the Provincial Insolvency Act.

    In the course of their judgement in the case cited, Knox and Piggott, JJ., say that the only case in this Court bearing on the point of which they are aware, is that of Beni Prasad v. Dharaka Rai (the actual reference is to a case reported at page 270 of the same volume, but this was evidently a slip). They distinguished that case on the ground that it proceeded on a very special line of reasoning. It seems to us that the decision of Strachey, C.J, and Bankeji, J., in I.L.R, 23 All., 277, proceeded upon two grounds, namely, that section 5 of the Limitation Act of 1877 did not, within the meaning of section 6 of that Act, ‘affect or alter’ a period of limitation prescribed by the N.W.P Rent Act of 1881, and that the latter Act could not be considered a complete Code in it Self so as to render the general provisions of the Limitation Act inapplicable. Knox and Piggott, JJ., held that if section 12 of be Limitation Act were applied to an appeal under section 46 of the Insolvency Act, it would, within the meaning of section 29 of the present Limitation Act, ‘affect or alter’ the period of limitation prescribed for an appeal under the Insolvency Act. As the language of section 29 of the present Limitation Act is to all intents and purposes the same as that of section 6 of the Limitation Act of 1877, the decision of Knox and Piggott, JJ., conflicts with that of Strachey, C.J, and Banerji, J., upon a question of the correct construction of the Limitation Act, which is of considerable importance. It also conflicts with the decision of Banerji, J., in Joti Sarup v. Ram Chandar Singh, which was not brought to their notice.

    The question has been argued very fully before us, and our attention has been drawn to a large number of decisions bearing upon it. For the applicant it has been contended that the Provincial Insolvency Act is not a ‘special law’ within the meaning of section 29 of the Limitation Act, and that, even if it is a ‘special law,’ the application of section 12 of the Limitation Act to the appeal in this case does not, within the meaning of section 29 of that Act, ‘affect or alter’ the period prescribed for an appeal under section 46 of the Provincial Insolvency Act.

    So far as we are aware, the expression ‘special law’ has not been defined by the Legislature, except in the Penal Code, and it is not permissible to use the definition in that Code as a guide to the meaning of that expression in the Limitation Act. It may be that the expression was intended to cover only laws like the Bent Act X of 1859, which was held by the Privy Council to be a complete Code in itself, but it seems more likely that the words were intended to be understood in their ordinary sense as meaning an Act dealing with a particular subject. Even so the expression is not free from difficulty. The Code of Civil Procedure is a general law (see L.R, 3 I.A, 7), though it purports to deal only with procedure. The Forfeited Property Act of 1859 is obviously a special law. But what of such an Act as the Transfer of Property Act? The Registration Act has been held to be a special law, and we think rightly. The Provincial Insolvency Act, though it applies to a large part of British India, appears to us to be a special law, as it creates a special jurisdiction and deals with a very special branch of the law. We are of opinion that the Provincial Insolvency Act is a special law within the meaning of section 29 of the Limitation Act.

    We think the course of legislation on the subject throws some light upon the true meaning of section 29 of the present Limitation Act. Act XIV of 1859, section 3, provided that when by any law then or thereafter to be in force, a shorter period of limitation than that prescribed by that Act was specially prescribed for the institution of a particular suit, such shorter limitation should be applied notwithstanding that Act; and section 14 of that Act contained provisions similar to those contained in section 14 of the present Limitation Act. While the Act was in force, a question arose whether a suit for rent under Act X of 1859 was governed by Act XIV or not. A Full Bench of the Calcutta High Court answered this question in the negative, see Poulson v. Modhdoosoodun Paul Chowdhry, and this decision was approved in a later case by their Lordships of the Privy Council, who said that the special legislation contained in Act X was of such a special kind that according to the well-established rule for the construction of Statutes, it must be presumed that the Legislature did not intend by the general enactment in Act XIV to interfere with it. They pointed out that Act X was intended to form a special and complete Code of Procedure with regard to the trial of questions relating to rent and the occupancy of land in the mufassil—Unnoda Persaud Mookerjee v. Krhto Coomar Moitro. In accordance with that decision it was held by a Full Bench in Nagendro Nath Mullick v. Mathura Mohan Parhi that section 14 of the Limitation Act of 1877 did not apply to suits under Act X of 1859. See also Girija Nath Roy Bahadur v. Patani Bibee.

    section 6 of the Limitation Act of 1871 provided as follows:—“When by any law not mentioned in the schedule hereto annexed and now or hereafter to be in force, a period of limitation differing from that prescribed by this Act is especially prescribed for any suits, appeals or applications, nothing herein contained shall affect such law.” This was replaced in 1877 by section 6 of the Limitation Act of that year, which provided as follows: “When by any special or local law now or hereafter in force in British India, a period of limitation is specially prescribed for any suit, appeal or application, nothing herein contained shall affect or alter the period so prescribed.” The alteration in the language is noticeable and suggests an intention to limit the operation of special or local laws to the periods prescribed by them and to re-introduce the principle of section 3 of the Limitation Act of 1859, which limited the operation of other Acts to any shorter periods prescribed by them. This seems to have been the view taken in Behari Lall Mookerjee v. Mungolanath Mookerjee, where section 12 of the Limitation Act of 1877 was held to cover an application for review of judgement in a case under the Bengal Rent Act of 1869 and in Golap Chand Nowluckha v. Krishto Chunder Dass Biswas where section 5 of the Limitation Act of 1877 was held to apply to a suit under the Bengal Rent Act of 1869. Similarly in Nijabutoolla v. Wazir Ali, and in Khetter Mohun Chuckerbutty v. Dinabashy Shaha, it was held that sections 5 and 14 of the Limitation Act of 1877, applied to suits under section 77 of the Registration Act. The last three decisions were approved and followed by the Bombay High Court in Guracharya v. The President of the Belgaum, Town Municipalities. On the strength of three of the Calcutta decisions it was held in a reference under the Madras Forest Act of (1882) I.L.R, 10 Mad., 210, that section 5 of the Limitation Act of 1877 applied to an appeal under that Act, and in Kullayappa v. Lakshmipathi that section 14 of the Limitation Act of 1877 applied to a suit under the Madras Rent Recovery Act, 1865.

    After examining the cases mentioned above and others, Muthusami Ayyar, J., in Veeramma v. Abbiah came to the conclusion that the general provisions of the Limitation Act of 1877 were applicable to suits and other proceedings under Acts prescribing special periods of limitation, unless those Acts were complete Codes in themselves to which the general provisions of the Limitation Act could not be applied without incongruity. This view was accepted by Strachey, C.J, and Banerji, J., in Beni Prasad Kuari v. Dharaka Rai and by Banerji, J., in Joti Sarup v. Ram Chandar Singh, both cases under the N.W.P Rent Act, 1881.

    There is therefore authority for the proposition that the general provisions of the Limitation Act, 1877, are applicable to suits and other proceedings under other Acts which prescribe special periods of limitation, but which are not intended to be complete Codes in themselves, and that the words ‘affect or alter’ in section 6 of the Limitation Act of 1877 relate only to the period prescribed and not to the way in which that period is to be computed. The same words appear in section 29 of the present Limitation Act. It cannot, however, be said that this view has gone unchallenged Shephard, J., in the case reported in I.L.R, 18 Mad., 99, expressed the opinion that the application of the general provisions of the Limitation Act to periods of limitation prescribed by other Acts did ‘alter or affect’ those periods and Chandavarkar, J., in a land acquisition case in I.L.R, 30 Bom., 275, said it was a moot question whether the general provisions of the Limitation Act could be applied in this way, though he followed a previous decision of the Bombay High Court by which he considered himself bound.

    The question is one of considerable difficulty, and it must be admitted that at first sight it is straining the words to hold that the application of the general provisions of the Limitation Act to periods of limitation prescribed by other Acts does not ‘affect or alter’ those periods. In one sense it certainly does. But the construction accepted by Strachey, C.J, Banerji, J., and Muthtjsami Ayyar, J., seems to us to be correct. Apart from the history of this piece of legislation, we find it difficult to believe that when the Legislature introduced, as it has, into several Acts, provisions giving a right of appeal and prescribing periods within which the right may be exercised, it intended as a general rule that those provisions should be applied without reference to the general provisions contained in the general Limitation Act. In many, if not most, cases the Code of Civil Procedure is made applicable, with the result that an appellant must produce a copy of the order against which he is appealing. It is reasonable to suppose that the Legislature intended to give him time to procure a copy of the order. The general provisions of the Limitation Act are founded mainly upon equitable considerations which apply as much to periods of limitation prescribed by special Acts as to periods of limitation prescribed by the Limitation Act itself.

    Upon the question whether this or that Act is a complete Code in itself to which the Limitation Act should not be applied, there is considerable difference of opinion. In some of the cases already cited, the Calcutta High Court held that the general provisions of the Limitation Act, 1877, were applicable to suits under the Registration Act. But in Veeramma v. Abbiah three Judges held that they did not apply and that decision was followed in Abdul Hakim v. Latif-un-nessa. In Suraj Bali Prasad v. Thomas it was held that section 5 of the Limitation Act, 1877, did apply to a suit under the Registration Act. It is unnecessary to express any opinion on this point, but the soundness of one of the reasons given for holding that the general provisions of the Limitation Act do not apply to suits under the Registration Act, namely, that a suit to compel registration of a document might be delayed for many years under section 7 of the Limitation Act of 1877 (section 6 of the present Act), is open to question, for that section applies only to suits the period of limitation for which is prescribed by the schedule. The same reason was given by Knox and Piggott, JJ., for holding that the general provisions of the Limitation Act did not apply to proceedings under the Insolvency Act.

    There remains the question whether the Provincial Insolvency Act is a complete Code in itself. In our opinion it is not. In order to ascertain the procedure to be followed in original, appellate or revisional proceedings, one has to refer to the Code of Civil Procedure. It appears to us that the object of section 47 of the Act was to attract the provisions of the Code of Civil Procedure. There are several Acts, for example, the Succession Act, the Probate and Administration Act, and the Land Acquisition Act, which make the Code of Civil Procedure applicable to proceedings under the Act and give a right of appeal to the High Court, but do not prescribe any period of limitation for the appeal. It has always been assumed, probably rightly, that such appeals are appeals under the Code of Civil Procedure, governed by what is now article 156 of Schedule I to the Limitation Act and by the general provisions of the Act also. Sub-section (4) of section 46 of the Provincial Insolvency Act does not seem to have been required, but whether it was required or not, we do not think that it can have been inserted for the purpose of rendering the general provisions of the Limitation Act inapplicable.

    For the above reasons we are of opinion that section 12 of the Limitation Act applied to the appeal presented by the present applicant to the District Judge. In this view the appeal was within time. We set aside the order of the District Judge and remit the case to him to be disposed of according to law. Costs in this Court to be costs in the cause.

    Appeal allowed.

    Provincial Insolvency ActProvincial Insolvency Act
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    Comments

    Dropadi (Petitioner) v. Hira Lal (Opposite Party).
    (May 1, 1912)