ANUMUKONDA ANJANEYULU Vs. AGRICULTURAL TRADERS
HIGH COURT OF ANDHRA PRADESH
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(1.) The short but important question that arises in this Civil Revision Petition is, whether the account of the defendant in the books of the plaintiff giving rise to the suit claim, is a mutual, open and current account. It is conceded by both the parties that if the account is a mutual, open and current account, then, the suit is not barred by time under Art. 1 of the I Schedule to the Limitation Act ; but, if it is not a mutual open and current account within the meaning of the Article, then, the suit claim is barred by time.
(2.) The material facts giving rise to the above Civil Revision Petition may briefly stated. The respondent-plaintiff filed a suit against the petitioner-defendant for the recovery of an amount of Rs. 636-07 Ps. On Khata dealings. In the plaint the respondent averred that the defendant had opened a khata in his favour in the plaintiffs firm made payments to his credit and took goods when ever necessary. As per the statement of account filed the defendant owed the plaintiff a sum of Rs.636.07 ps it was an open mutual and current account, because there were suit Khata dealings between the plaintiff and the defendant, creating reciprocal demands against each other.
(3.) The petitioner-defendant resisted the suit. According to him, the account was not a mutual, open and current account. The transactions on either side were not independent of each other creating independent obligations. The transaction on one side created obligations and those on the other side, were either complete or partial discharges of such obligations, or payments towards the value of the goods to be supplied immediately in the near future. The defendant made payments towards the costs of goods supplied or to be supplied, but never as separate transactions. Article 1 of the first schedule to the Limitation Act did not apply to the account and hence the suit was barred by Limitation. The defendant also denied the last credit entry for Rs. 150.00- dated 13/07/1964.;
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