JIWANLAL ACHARIYA versus RAMESHWARLAL AGARWALLA

JIWANLAL ACHARIYA versus RAMESHWARLAL AGARWALLA

Section 4 of the Bihar Money-Lenders (Regulation of Transactions) Act, 1939 is not a bar to a suit for recovery based on a promissory note executed after registration, as 'loan' includes renewals of earlier advances. For limitation purposes, in the case of a post-dated cheque given as conditional payment, the effective date of payment under s. 20 of the Indian Limitation Act, 1908 is the date on the cheque, not the date of physical delivery.

Parties
Appellant/defendant: Jiwanlal Achariya; Respondent/plaintiff: Rameshwarlal Agarwalla
Jurisdiction
India
Judgment Date
26 August 1966
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal by Special Leave From Patna High Court Judgment Dated August 5, 1964
Outcome
Appeal dismissed (by majority); suit maintainable and within limitation.
Legal Topics
Promissory Notes as 'loans' Under Money Lenders Act, Renewal of Loan Agreements, Time Bar/law of Limitation in Context of Cheque Payments, Interpretation of Post Dated Cheques as Payment Under Limitation Act
Banking Law Contract Law Limitation Law Money Lending Law Promissory Notes as 'loans' Under Money Lenders Act Renewal of Loan Agreements Time Bar/law of Limitation in Context of Cheque Payments Interpretation of Post Dated Cheques as Payment Under Limitation Act

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Parties

Jiwanlal Achariya

Appellant/defendant

Rameshwarlal Agarwalla

Respondent/plaintiff

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal by Special Leave From Patna High Court Judgment Dated August 5, 1964

Legal Issues

  1. 1 Whether a promissory note executed in respect of a past loan is a 'loan' under s. 4 of the Bihar Money-Lenders (Regulation of Transactions) Act, 1939
  2. 2 Whether handing over a post-dated cheque constitutes payment for the purpose of extending limitation under s. 20 of Indian Limitation Act, 1908

Ratio Decidendi

Section 4 of the Bihar Money-Lenders (Regulation of Transactions) Act, 1939 is not a bar to a suit for recovery based on a promissory note executed after registration, as 'loan' includes renewals of earlier advances. For limitation purposes, in the case of a post-dated cheque given as conditional payment, the effective date of payment under s. 20 of the Indian Limitation Act, 1908 is the date on the cheque, not the date of physical delivery.

Court Disposition

Appeal dismissed (by majority); suit maintainable and within limitation.

Orders

  • Appeal dismissed. No order as to costs as respondent did not appear before Supreme Court.