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M/S. Mahalaxmi Toys & Anr. vs Shri Jawahar Lal Goel & Ors.
2010 Latest Caselaw 1156 Del

Citation : 2010 Latest Caselaw 1156 Del
Judgement Date : 2 March, 2010

Delhi High Court
M/S. Mahalaxmi Toys & Anr. vs Shri Jawahar Lal Goel & Ors. on 2 March, 2010
Author: Aruna Suresh
* IN THE HIGH COURT OF DELHI AT NEW DELHI


+      RSA No.44/2010 & CM Nos.3882/2010 & 3883/2010

                                 Date of Decision: March 02, 2010


      M/S MAHALAXMI TOYS & ANR.              ..... Appellants
                   Through:  Mr.Javed Khan, Advocate.

                    Versus


      SHRI JAWAHAR LAL GOEL & ORS.                      ..... Respondents
                    Through:  None.

      %
      CORAM:
      HON'BLE MS. JUSTICE ARUNA SURESH

     (3) Whether reporters of local paper may be
         allowed to see the judgment?
     (2) To be referred to the reporter or not?
     (3) Whether the judgment should be reported
          in the Digest ?

                             JUDGMENT

ARUNA SURESH, J. (Oral)

1. Respondents filed a suit under the provisions of Order 37

CPC for recovery of Rs.2,50,000/- on the basis of two cheques bearing

No.514252 dated 6th September 2000, for a sum of Rs.1,75,000/- and

another cheque bearing No.514251 dated 30th September 2000, for a sum of

Rs.75,000/- respectively. These two cheques, on presentation, were

dishonoured by the concerned bankers vide memo dated 27 th March, 2001

on the ground „funds insufficient‟. However, appellants failed to pay the

said amount despite service of legal notice dated 12 th April 2001.

2. Appellants were granted leave to defend the suit. Trial Court

vide its order dated 20th October 2005, passed a decree for Rs.2,50,000/-

along with pendentelite and future interest at the rate of 12% per annum

from the date of filing of the suit till realization. Challenge to the said

judgment and decree by the appellants in the First Appellate Court also

failed.

3. This appeal has been filed by the appellants raising substantial

questions of law, as detailed in sub-paras I to L of Grounds for Appeal.

4. Learned counsel for the appellants has argued that the suit

was barred by period of limitation and therefore, judgment and decree of the

Trial Court is void ab initio. While awarding decree in favour of the

respondents, Trial Court did not properly appreciate evidence of the parties.

5. I find no force in the submission of learned counsel for the

appellants. It is not in dispute that appellants did not plead in their written

statement that the suit was barred by period of limitation. It is also admitted

by learned counsel for the appellants that question of limitation was never

raised before the Trial Court or before the Appellate Court. Learned

counsel has emphasised on the cross-examination of PW-1 Bhagat Swaroop

to say that loan of Rs.4,00,000/- was taken in 1992 by one of the partners of

respondent No.1 and therefore, apparently, the impugned cheques, which

were issued by the appellants in favour of the respondents in the year 2000,

in no manner, extend the period of limitation and the suit is barred under

law of limitation and therefore a substantial question of law needs

formulation and adjudication if the suit of respondent is barred by period of

limitation.

5. It has come in cross-examination of Bhagat Swaroop that at

the time of taking loan appellants had issued four cheques, however, all the

four cheques were taken away by the appellants and in lieu of the cheques

they had issued three cheques for a sum of Rs.3,50,000/-. On 3rd December

1995, appellants took away the said three cheques. Bhagat Swaroop has

deposed that appellants used to take back the earlier cheques and issue fresh

cheques in lieu of that on personal request and they used to issue cheques

only for the principal amount and interest was being paid in cash. It seems

that appellants had been issuing cheques from time to time and finally two

impugned cheques, one dated 6 th November, 2000 for Rs.1,75,000/- and

other dated 30th September, 2000 for Rs.75,000/- were issued by appellants

to pay off the loan of Rs.2,50,000/-.

6. Trial Court, while deciding issue No.1, made following

observations:-

"7. .....The present suit is under order 37 of CPC based on cheques which are within the period of limitation, therefore, in the considered opinion of this court the suit of the plaintiff is maintainable in the present form.".

7. Thus, it is clear that even though the issue of limitation was

not raised before the Trial Court, however, being a question of law, Trial

Court did consider this aspect of the matter and gave its findings. Findings

of the Trial Court, as above, were never under challenge before the

Appellate Court.

8. Defence which was raised by the appellants before the Trial

Court was that the amount as against the said two cheques stood duly paid

for which they also submitted a statement of accounts in para 1 (reply on

merits) on the written statement. Since appellants failed to substantiate

these payments as claimed and failed to prove the cash book in evidence,

Trial Court passed the impugned judgment and decree and upheld by the

Appellate Court.

9. Under these circumstances, no substantial question of law, as

suggested, needs formulation as no such question arises on the facts and

circumstances of this case. Not only that, appellants have to show that a

question of law needs adjudication, they have also to show that such

question of law is a substantial question of law and needs determination.

10. Since no substantial question of law arises in the appeal, I find

no merits in the same. It is dismissed accordingly.

CM Nos.3882/2010 (for stay) & 3883/2010 (for exemption)

11. With dismissal of the appeal, both these applications have

become infructuous. Hence, the same stand dismissed accordingly.

(ARUNA SURESH) JUDGE MARCH 02, 2010 sb

 
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