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  • article 62 and not article 120 of the schedule to the Limitation Act
  • section 14 of the Limitation Act.Now, article 120
  • section 73 of the Code of Civil Procedure,
  • article 62 of the Limitation Act
  • SECTION 14 LIMITATION ACT
  • article 13 of the Limitation Act
  • section 295 of the Code of 1882,
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Citation Codes
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citation codes
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  • article 62 and not article 120 of the schedule to the Limitation Act
  • section 14 of the Limitation Act.Now, article 120
  • section 73 of the Code of Civil Procedure,
  • article 62 of the Limitation Act
  • SECTION 14 LIMITATION ACT
  • article 13 of the Limitation Act
  • section 295 of the Code of 1882,
Smart Summary

Factual and Procedural Background

The appellant (plaintiff) brought the present suit under section 73 of the Code of Civil Procedure seeking rateable distribution as against the defendant of certain assets in Court deposited by a third party (both parties had decrees against that third party). The District Court of North Arcot refused the plaintiff's application for rateable distribution on 18 October 1905. The defendant withdrew the money from Court on 19 October 1905. The plaintiff then filed a revision petition in the High Court on 21 December 1905 to set aside the District Court's order; the revision petition was dismissed on 12 December 1906. The present suit was filed on 11 December 1909.

Because different articles of the Limitation Act prescribe different limitation periods, three principal procedural questions were identified for the second appeal: (1) whether article 62 (and not article 120) of the Limitation Act applies; (2) whether, if article 62 applies, the plaintiff can claim an exclusion of time under section 14 of the Limitation Act so that the suit is still in time; and (3) whether the lower Courts should have permitted amendment of the plaint to raise the second point.

Legal Issues Presented

  1. Whether article 62 of the schedule to the Limitation Act, and not article 120, applies to a suit under section 73 of the Code of Civil Procedure for recovery of a portion of assets drawn from Court by a co-decree-holder.
  2. If article 62 applies, whether the plaintiff is entitled under section 14 of the Limitation Act to deduct (exclude) the period between the District Court's order disallowing the petition for rateable distribution and the disposal of his Revision Petition by the High Court (i.e., whether the exclusion covers 19 Oct 1905–12 Dec 1906 or only 21 Dec 1905–12 Dec 1906).
  3. Whether the lower Courts should have permitted amendment of the plaint to enable the plaintiff to raise the point about exclusion under section 14.

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that article 120 might apply (which would make the suit timely), or, if article 62 applies, that time should be excluded under section 14 of the Limitation Act so as to render the suit within time.
  • The appellant relied on authorities including Gurudas Pyne v. Ram Narain Sahu, Ramaswamy Chetty v. Harikrishna Chettyar, and Raj Kriskto Roy v. Beer Chunder Joobraj to support the contention that section 14 should permit exclusion of the period between the District Court order and the disposal of the revision petition (or entitle him to a broader deduction).

Respondent's Arguments

  • The respondent contended that article 62 of the Limitation Act is the proper article to apply to a suit under section 73, consistent with authorities treating such suits as "money had and received" for the plaintiff's use.
  • The respondent further contended that the plaintiff could not exclude the time between the District Court order and the presentation of the revision petition under section 14 because there is no fixed statutory period for presenting a revision petition and therefore the plaintiff was not "prosecuting a proceeding" during that interval; the respondent also relied on the proposition that the High Court will not exercise revisional jurisdiction where another remedy (here, a suit) is available, so the plaintiff could not be treated as prosecuting the revision petition in good faith for the purposes of section 14.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vishnu Bhikaji Phadke v. Achut Jagannath Ghate Authority that a suit under the earlier section 295 (corresponding to section 73) falls under article 62 as a suit for money received for the plaintiff's use. The Court regarded this as direct authority that suits under section 73 fall within article 62 (money had and received type suits).
Shankar Sarup v. Mejo Mal Consideration (by the Privy Council) of whether a suit under section 295 was a suit to set aside a Court order; approval of Vishnu Bhikaji Phadke on that point. The Privy Council held a suit under s.295 was not a suit to set aside an order and that article 13 would not apply; the Court noted the Privy Council did not opine on article 62 vs article 120, so the case is supportive only to the extent mentioned.
Mahomed Wahib v. Mahomed Ameer Discussion of the true nature of suits described in article 62 and citation of Blackstone's formulation of "money had and received". The Court relied on this case's treatment of article 62 to support the proposition that article 62 applies where defendant received money which in equity belongs to the plaintiff, and intention of defendant at receipt is not the test.
Shanmuga Pillai v. Minor Govindasami Statement by Sir Subrahmanya Ayyar agreeing with the Calcutta view on article 62's scope. The Court recorded agreement with the view that article 62 should apply where the circumstances render the defendant's receipt effectively for the plaintiff's use.
Baghwan (Bhagwan) Das v. Karam Husain Application of the Calcutta view on article 62 by the Allahabad High Court. The Court noted that the Allahabad High Court followed the Calcutta reasoning that article 62 applies where defendant has received money which in justice and equity belongs to the plaintiff.
Sankunni Menon v. Govinda Menon Earlier decision of this Court following the Calcutta view concerning article 62. The Court recorded that this Court had followed the Calcutta approach that article 62 applies in such cases.
Gurudas Pyne v. Ram Narain Sahu Authority relied on by the appellant concerning applicability of article 62 in particular factual circumstances. The Court observed that in that case the money received by the defendant did not belong to the plaintiff but to a third party and the plaintiff only had an equitable claim; the Court said the facts of that case differ from the present.
Ramaswamy Chetty v. Harikrishna Chettyar Authority relied on by the appellant where the plaintiff's suit to establish his rights as assignee had been dismissed when the defendant realized the money. The Court declined to follow that decision: here the plaintiff was eventually found entitled to share in the assets, and dismissal of the suit at the time of realization should not remove the case from article 62's purview.
Moses v. Macferlan English authority referenced as supporting the notion of actions for money had and received. The Court noted Moses v. Macferlan was referred to as authority for treating the suit as one for money received for the plaintiff's use.
Raj Kriskto Roy v. Beer Chunder Joobraj Authority concerning the allowance of time for appeal and the doctrine that taking an appeal within the fixed statutory period shows prosecution with due diligence. The Court held this case was not in point because it concerned appeals (with a fixed statutory period), whereas revision petitions have no fixed statutory period; thus the reasoning for exclusion of time under section 14 in that appeal context did not apply.

Court's Reasoning and Analysis

The Court proceeded in two main analytical steps corresponding to the first two issues identified.

1. Whether article 62 (and not article 120) applies

  • The Court observed that article 120 applies only when there is no other article of the Limitation Act applicable. It examined earlier authorities to determine whether suits under section 73 of the Code fall within article 62 (the class of suits described in article 62 being those for money received by the defendant for the plaintiff's use).
  • The Court treated Vishnu Bhikaji Phadke v. Achut Jagannath Ghate as a direct authority holding that a suit under the corresponding earlier provision (section 295) falls under article 62; Moses v. Macferlan was cited in that context as authority for the characterization of such suits as "money had and received" for the plaintiff's use.
  • The Court considered other authorities (Mahomed Wahib, Shanmuga Pillai) that analysed the true nature of suits within article 62 and concluded that article 62 applies wherever the defendant has received money which in justice and equity belongs to the plaintiff, in circumstances which render the receipt a receipt for the plaintiff's use. The Court accepted the view that the defendant's subjective intention at the time of receipt is not the test: the relevant question is whether justice and equity treat the receipt as for the plaintiff's use.
  • Applying that legal standard to the present facts (where, after readjustment, the plaintiff would be found entitled to a portion of assets paid to the defendant), the Court considered that the portion so paid must be regarded as received for the plaintiff's use, and thus article 62 governs.
  • The Court rejected the appellant's reliance on certain precedents (e.g., Gurudas Pyne and Ramaswamy Chetty) as distinguishable on their facts or not persuasive: in Gurudas Pyne the money did not belong to the plaintiff but to a third party; in Ramaswamy Chetty the Court earlier had held a defendant could not be said to have received money for the plaintiff's use because the plaintiff's suit to establish title had been dismissed at the time of realization — the present Court declined to follow that outcome because the plaintiff there was ultimately found entitled to share.

2. Whether section 14 of the Limitation Act allows exclusion of the period relied upon by the plaintiff

  • The Court analysed whether the time between the District Court order (19 October 1905) and the presentation of the revision petition (21 December 1905) could be excluded under section 14.
  • The plaintiff relied on Raj Kriskto Roy v. Beer Chunder Joobraj, where a party who appealed within the fixed statutory period was treated as proceeding with due diligence between the decision and the filing of the appeal. The Court held that case was inapplicable because it concerned appeals, where a fixed statutory period is provided; revision petitions have no fixed statutory period.
  • Because the law does not fix any period within which revision petitions must be brought, the Court concluded that the plaintiff could not be treated as "prosecuting a proceeding" during the interval while he was deciding to apply for revision; therefore the time from 19 October 1905 to 21 December 1905 could not be excluded under section 14.
  • Moreover, the Court held that even the period of the revision petition itself could not be relied upon for exclusion under section 14 because High Courts usually do not exercise revisional jurisdiction when another remedy is open — and here the plaintiff had a remedy by suit — so the revision petition was not being prosecuted in "good faith" within the meaning of section 14.

3. Amendment of the plaint

Having decided the preceding points against the appellant, the Court found it unnecessary to consider the third point about amendment of the plaint.

Holding and Implications

Final Disposition: Second appeal dismissed with costs.

Direct consequences as stated in the opinion:

  • The Court affirmed the lower Court's approach that article 62 of the Limitation Act applies to a suit under section 73 of the Code in the circumstances of this case (i.e., suits effectively for money had and received for the plaintiff's use).
  • The Court held that the plaintiff could not exclude the time between the District Court's order and the presentation of the revision petition under section 14 of the Limitation Act, and further that the plaintiff could not rely on section 14 by treating the revision petition as prosecuted in good faith because the High Court would not normally exercise revisional jurisdiction where another remedy (a suit) was available.
  • Because the relevant period could not be excluded, the suit was out of time under article 62 and the appeal was dismissed. The Court did not find it necessary to rule on the plaint amendment issue.

Broader implications: The opinion applies and endorses established authority about the scope of article 62 (suits of the "money had and received" kind) and about the limits of section 14's exclusion where revision petitions are concerned. The Court did not purport to lay down a novel precedent beyond applying and affirming the principles discussed in the cited authorities; the decision operates to uphold the lower Court's rulings in the particular facts of this case.

    Baiznath Lala v. Ramadoss

    Ayling and Hannay, JJ.:— The questions for decision in the second appeal are (1) whether the lower Courts are right in holding that article 62 and not article 120 of the schedule to the Limitation Act applies to the facts of this case, (2) whether even if article 62 applies the suit is still in time by virtue of a deduction to which the plaintiff claims to be entitled with reference to section 14 of the Limitation Act, and (3) whether the lower Courts should have allowed the plaint to be amended so as to enable plaintiff to raise the second point.

    The plaintiff, who is the appellant before us, brought the suit from which this second appeal arises under section 73 of the Code of Civil Procedure, his application for rateable distribution as against the defendant in respect of certain assets in Court deposited by a third party against whom both plaintiff and defendant had obtained decrees having been refused by the District Court of North Arcot on 18th October 1905. The defendant drew the money in question from Court on 19th October 1905. The plaintiff filed a revision petition in the High Court to set aside the order of the District Court on 21st December 1905. That petition was dismissed on 12th December 1906. The present suit was filed on 11th December 1909. If article 120 applies to the case the suit is in time in any view but if article 62 is to be applied it will be barred unless the plaintiff can show he is entitled to deduct the excess period by virtue of section 14 of the Limitation Act.

    Now, article 120 can only be applied when there is no other article of the Limitation Act applicable. In support of the view that article 62 is the proper one to apply, Vishnu Bhikaji Phadke v. Achut Jagannath Ghate(1), Shankar Sarup v. Mejo Mal(2), Mahomed Wahib v. Mahomed Ameer(3) and Shanmuga Pillai v. Minor Govindasami(4) have been relied on both here and in the lower Court. The first case is direct authority on the point. The suit in that case was brought under section 295 of the Code of 1882, which corresponds to section 73 of the present Code and it was held that such a suit falls under article 62, Moses v. Macferlan(5) being referred to evidently as authority for the position that the suit was one for money received for the plaintiff's use. The decision in Vishnu Bhikaji Phadke v. Achut Jagannath Ghate is referred to with approval by the Privy Council in Shankar Sarup v. Mejo Mal, upon the question whether a suit under section 295 is a suit to set aside the order of the Court, passed under that section and it was held that it was not such a suit and that therefore article 13 of the Limitation Act would not apply. It was only upon that point that the case was referred to and the decision of that point was sufficient for the purposes of the case. Their Lordships expressed no opinion as to whether the proper article to apply was article 62 or article 120 and the case (though so far as it goes it supports the lower Court's view) cannot be regarded as direct authority upon that point. Mahomed Wahib v. Mahomed Ameer and Shanmuga Pillai v. Minor Govindasami were not cases of suits under section 73 of the Code. But the true nature of the class of suits described in article 62 of the Limitation Act is considered in the former decision and Sir Subrahmanya Ayyar, J., in the latter case expresses his agreement with the views laid down by the learned Judges of the Calcutta High Court. The conclusion arrived at in the Calcutta case was that the description of the suits mentioned in article 62 as suits for money received by the defendant for the plaintiff's use pointed to the well-known English action in that form and that consequently the article ought to apply wherever the defendant has received money which in justice and equity belongs to the plaintiff in circumstances which in law render the receipt of it by the defendant a receipt for the use of the plaintiff. This view has been followed by the Allahabad High Court in Baghwan Das v. Karam Husain and by this Court in Sankunni Menon v. Govinda Menon. We agree with the opinion of Mr. Justice Mukherji in the Calcutta case that the intention of the defendant at the time of receipt of the money to receive it for himself and not for the plaintiff is not the test by which the question whether the money was in fact received for the plaintiff's use has to be decided. As observed by the Privy Council in Shankar Sarup v. Mejo Mal “the scheme of section 295 is rather to enable the Judge as a matter of administration to distribute the price according to what seem at the time to be the rights of the parties without this distribution importing a conclusive adjudication on those rights, which may be subsequently readjusted by such a suit as the present.” If on such a readjustment being made the plaintiff in a suit under section 73 is found to be entitled to a portion of the assets which have been paid to the defendant, we are of opinion that the latter must be regarded as having received the portion so paid to him “for the use of the plaintiff.” In this connection we may refer to the extract from Blackatone's commentaries cited by Mr. Justice Harrington in Mahomed Wahib v. Mahomed Ameer: “This species of action lies when one has had and received money belonging to another without any valuable consideration given on the receiver's part, for the law construes this to be money had and received for the use of the owner only.” We think these words fitly apply to the facts of the present case.

    The appellant relies upon Gurudas Pyne v. Ram Narain Sahu and Ramaswamy Chetty v. Harikrishna Chettyar. As regards the former it has been pointed out both in Mahomed Wahib v. Mahomed Ameer and Bhagwan Das v. Karam Husain that the money received by the defendant in that case did not belong to the plaintiff but a third party and that the plaintiff had a mere equitable claim to follow that money in the hands of the defendant. It was in these circumstances that article 62 was held in applicable by the Privy Council. It is plain that the facts of that case were quite different from the present, therefore. In the second case—Ramaswamy Chetty v. Harikrishna Chettyar—the plaintiff claimed as assignee of a decree but at the time when the money claimed by him was realized by the defendant, the plaintiff's suit to establish his rights as assignee had been dismissed. The Court in these circumstances held that as at the time when the defendant realizad the money, the plaintiff could not himself have collected the amount by reason of the dismissal of his suit to establish his title as assignee, the defendant could not be said to have received the money for his use in any sense. With all respect we are unable to follow that decision. The plaintiff in the case was eventually found entitled to share in the assets realized by the defendant and that being so, we do not see why the mere fact that the plaintiff's suit to establish his rights as assignee had been dismissed at the time when the money was realized by the defendant should suffice to take the case out of the purview of article 62.

    In the result, therefore, we think the lower Court was right in holding that article 62 should be applied to the facts of the present case.

    The second point depends upon the question whether the plaintiff would be entitled by virtue of section 14 of the Limitation. Act to deduct the time between the order of the District Court disallowing his petition for rateable distribution and the disposal of his Revision Petition by the High Court (i.e, from 19th October 1905 till 12th December 1906) or only the time from the presentation of the Revision Petition until its disposal (i.e, from 21st December 1905 till 12th December 1906). The plaintiff relies upon the decision in Raj Kriskto Roy v. Beer Chunder Joobraj in support of the first alternative. We think that case is not in point here. It was a case where the plaintiff's suit was dismissed for want of jurisdiction and the plaintiff then tried unsuccessfully to remedy his failure by appeal. In these circumstances it was held that as the law allows a fixed time for appeal in order to allow the unsuccessful party to consider whether he will appeal or no if a party appeals within the time so fixed, he ought to be considered as proceeding with due diligence between the decision of the suit and the filing of the appeal. Here there was no question of appeal. Though the plaintiff had a right of suit under section 73 of the Code, he elected to proceed by revision in the High Court and the law does not fix any period within which petitions for revision are required to be brought. In these circumstances it seems to us that the case cited is not in point and that it cannot be said that the plaintiff was prosecuting a proceeding at all while he was merely making up his mind to apply for revision. In this view the time which expired between the order of the District Court and the filing of the Revision Petition in the High Court (viz., from 19th October 1905 till 21st December 1905) cannot be excluded, as the plaintiff contends, under section 14 of the Limitation Act. It is conceded that if this period be not excluded, the suit is still out of time. We think, further, that the respondent is entitled; to rely upon the contention, that in any event plaintiff cannot be said to have prosecuted the Revision Petition in good faith within the meaning of section 14 of the Limitation Act inasmuch as it has been frequently held by this and other High Courts that the High Court will not exercise its revisional powers when there is any other remedy open. Here the plaintiff had his remedy by suit.

    It is unnecessary in these circumstances to consider the third point raised regarding amendment of the plaint.

    The second appeal is dismissed with costs.

    N.R

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    Baiznath Lala v. Ramadoss
    (Oct 21, 1914)