SUBANAMMA NINAN Vs. GEORGE VEERAN

JUDGEMENT

(1.) A learned Judge of this Court while hearing this appeal on the question of commencement of period of limitation of a suit on a dishonoured cheque has doubted the correctness and sought reconsideration of decision reported in Sivaraman P.V. v. Shajan Antony [2017 (4) KHC 601] which held that limitation in such a suit started from the date of lending, after noticing the said decision being in conflict with an earlier decision of a Single Bench of this Court in Vasudeva Panicker v. Sayed Ummer Pookoya Thangal [1966 KLT 134] which, however, took a contrary view on the question to the effect that limitation in a similar suit ran only from the date of dishonour of cheque. We understand the law that the Division Bench answering the reference has also a duty to decide and dispose of on merits the proceedings from which the reference arose. We accordingly propose to consider the appeal before us on merits also.

(2.) The respondent in this appeal, who is the plaintiff, filed O.S. No. 16 of 2009 before the Sub Court, Thiruvalla, seeking a decree for recovery of plaint amount of Rs. 4,41,337/- with 12% interest per annum thereon, on the strength of five dishonoured cheques against the appellants, who are the legal heirs of the deceased Ninan @ Babu and obtained a decree on 28.06.2010 for the amount by sale of 21 Ares of plaint schedule property, owned by deceased Ninan and later inherited by the appellants. The defendants, who are his widow and two sons filed this appeal, challenging the impugned judgment and decree.

(3.) Sri Ninan, predecessor of the appellants was a friend of the respondent and they worked together in U.A.E. for sometime. Sri Ninan used to borrow amounts from him in connection with his business needs. The case of the respondent is that Sri Ninan borrowed Dirhams equal to Indian currency of Rs. 4,41,337/- at Abu Dhabi and issued in the name of the respondent Exts. A1 to A5 cheques drawn for different sums on Federal Bank Limited, Nedungadapalli branch in repayment of the amount borrowed. All the five cheques were postdated to 10.12.2007. The cheques on presentment through the bankers of the respondent were dishonoured for want of funds and on receipt of intimation of dishonour, he issued a lawyer's notice to Sri Ninan, calling upon him to discharge the debt. Sri Ninan replied to the notice denying his liability. Criminal prosecutions were also instituted against him under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the N.I. Act') before the Judicial First Class Magistrate, Thiruvalla. In the meantime, Sri Ninan died on 18.01.2009 and since the debt in favour of the respondent stood undischarged, he filed O.S. No. 16 of 2009 before the Sub Court, Thiruvalla.