LALA SHANTI SWARUP versus MUNSHI SINGH & ORS.

LALA SHANTI SWARUP versus MUNSHI SINGH & ORS.

The suit filed by the vendors for recovery of loss sustained owing to the purchaser’s failure to pay off the encumbrance was governed by Article 83 read with Article 116 of the Limitation Act, 1908, with the limitation period starting from the date of actual damnification—i.e., February 25, 1943, when the vendors were compelled to execute a self-liquidating mortgage. Thus, the suit was within time.

Parties
Appellant: Shanti Swarup; Respondents: Munshi Singh & Ors.
Jurisdiction
India
Judgment Date
03 January 1967
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated January 23, 1959 of Allahabad High Court in First Appeal No. 139 of 1946
Outcome
Appeal dismissed
Legal Topics
Implied Contract of Indemnity, Limitation Period for Indemnity Contracts, Sale of Mortgaged Property
Contract Law Limitation Law Implied Contract of Indemnity Limitation Period for Indemnity Contracts Sale of Mortgaged Property

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Parties

Shanti Swarup

Appellant

Munshi Singh & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated January 23, 1959 of Allahabad High Court in First Appeal No. 139 of 1946

Legal Issues

  1. 1 Whether the suit for indemnity was time-barred under the Limitation Act
  2. 2 Whether a covenant by the purchaser to pay off an encumbrance is an implied contract of indemnity

Ratio Decidendi

The suit filed by the vendors for recovery of loss sustained owing to the purchaser’s failure to pay off the encumbrance was governed by Article 83 read with Article 116 of the Limitation Act, 1908, with the limitation period starting from the date of actual damnification—i.e., February 25, 1943, when the vendors were compelled to execute a self-liquidating mortgage. Thus, the suit was within time.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs