BENGAL SILK MILLS CO Vs. ISMAIL GOLAM HOSSAIN ARIFF
HIGH COURT OF CALCUTTA
BENGAL SILK MILLS CO.
ISMAIL GOLAM HOSSAIN ARIFF
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Bachawat, J. -
(1.) This is an appeal by the defendant from a decree passed by his Lordship Mr. Justice H.K. Bose in a Money Suit. The defendant is a limited company. During the years 1928 to 1036 one 'Golam Hossain Cassim Ariff lent and advanced various sums of moneys to the defendant company. The loans carried interest at the rate of 7 1/2 per cent per annum. The defendant company made various part payments. The balance due to Golam Hessain Cassim Ariff on November 30, 1936 was Rs. 2,77,010/10/7 pies. He died testate on January 1, 1937. The present plaintiff is the sole surviving executor to his will. Pending the suit the defendant company has gone in liquidation. Various defences were raised but the only outstanding defence is that of limitation. Apart from limitation it is not now disputed that the moneys claimed in the suit are justly due to the plaintiff.
(2.) The suit is for recovery of Rs. 2,77,010/10/7 pies being the balance due on November 30, 1936 for moneys lent up to that date. By Article 57 of the Indian Limitation Act the period of limitation is three years from the date when the loan was made. The suit was instituted on December 19, 1939. To save the suit from the bar of limitation the plaintiff relies upon the acknowledgments of liability 'contained in the balance-sheets of the defendant company for the years ended 30-11-1930, 30-11-1931, 30-11-1932, 30-11-1933, 30-11-1934, 30-14-1935 and 30-11-1936. Copies of these balance-sheets were tendered at the trial and were marked exhibits by consent of the parties.
(3.) During the relevant years a continuous and current account of the loans and part payments Was kept an the books of both Golam Hossain Cassim Ariff and tile defendant company. The books of account of the defendant are not available. The relevant books of G.H.C. Ariff have been made exhibits in the suit. If necessary adjustments are made and the balances are struck on November 30 of every year, the balances found to be due to G.H.C. Ariff from these books will tally with the balances shown as due to him in the balance sheets of the defendant company. Each of the balance-sheets is signed by the auditors as also by Messrs. Hashim Ariff Brothers and Co., the managing agents of the defendant company. Each of them shows the amount owed by the defendant company to G.H.C. Ariff as at the end of the previous year. The dates on which the balance-sheets were signed, the ends of their respective previous years and; the balance shown to be then due to G.H.C. Ariff are as follows :
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