Case Note & Summary
The revision petition was filed by Bharat Sanchar Nigam Limited (BSNL), a Government Company under Section 617 of the Companies Act, 1956, against the judgment and decree dated 27.06.2006 passed by the Principal Civil Judge (Sr.Dn.), Hubballi, in Small Cause Suit No.98/2003, whereby the suit for recovery of money was dismissed on the sole ground of limitation. The brief facts are that BSNL had provided telephone connection to the respondent, who failed to pay the bill amount of Rs. 3,000/-. The respondent sent a letter dated 25.02.2000 acknowledging the debt and requesting to pay the amount in installments. BSNL filed the suit on 24.04.2003. The trial court dismissed the suit as barred by limitation, holding that the cause of action arose in 1998 and the suit was filed beyond three years. The legal issue was whether the respondent's letter constituted an acknowledgment of debt under Section 18 of the Limitation Act, 1963, thereby extending the limitation period. The petitioner argued that the letter dated 25.02.2000 was an acknowledgment and the suit was within time. The respondent, though served, remained absent, and the court appointed an amicus curiae. The court analyzed that under Section 18 of the Limitation Act, an acknowledgment of liability in writing before the expiration of the limitation period extends the period of limitation. The respondent's letter clearly acknowledged the debt and requested installment payment, which was an unequivocal acknowledgment. The suit filed on 24.04.2003 was within three years from the date of acknowledgment. The court allowed the revision petition, set aside the trial court's judgment, and decreed the suit for Rs. 3,000/- with interest at 6% per annum from the date of suit till realization.
Headnote
A) Limitation Act - Acknowledgment of Debt - Section 18 - Extension of Limitation - The suit for recovery of telephone bill dues was dismissed by the trial court on the ground of limitation. The High Court held that the respondent's letter dated 25.02.2000 acknowledging the debt and requesting installment payment constituted an acknowledgment under Section 18 of the Limitation Act, 1963, thereby extending the limitation period. The suit filed on 24.04.2003 was within time. (Paras 3-5) B) Companies Act - Government Company - Section 617 - BSNL is a Government Company under Section 617 of the Companies Act, 1956, and is entitled to the benefit of Section 18 of the Limitation Act, 1963. (Para 2) C) Civil Procedure - Small Cause Suit - Revision under Section 18 of Small Cause Courts Act - The revision petition was allowed, setting aside the trial court's judgment and decree, and the suit was decreed in favor of BSNL for recovery of Rs. 3,000/- with interest at 6% per annum from the date of suit till realization. (Paras 5-6)
Issue of Consideration
Whether the suit filed by BSNL for recovery of telephone bill dues was barred by limitation, and whether an acknowledgment of debt by the respondent extended the limitation period under Section 18 of the Limitation Act, 1963.
Final Decision
Revision petition allowed. Judgment and decree dated 27.06.2006 passed in S.C.No.98/2003 by the Principal Civil Judge (Sr.Dn.), Hubballi, is set aside. Suit is decreed in favor of the petitioner/plaintiff for recovery of Rs. 3,000/- with interest at 6% per annum from the date of suit till realization. No order as to costs.
Law Points
- Limitation Act
- 1963
- Section 18
- acknowledgment of debt
- extension of limitation period
- government company
- Section 617 Companies Act
- 1956
- Small Cause Suit
- recovery of money
