LALCHAND MANAKCHAND AND SONS Vs. VIJAY ENTERPRISES

JUDGEMENT

(1.) A short but important question is involved in this First Appeal, as to whether the suit filed by the appellant-firm was within limitation on basis of open, mutual and current account of the respondent-firm after its dissolution.

(2.) IN order to appreciate this question we may refer to the facts of the case. For the sake of convenience, the appellant is referred as plaintiff, respondent No. 1- firm and respondents 2 to 5, who were its partners as defendants.

(3.) THE plaintiff filed suit on 29-4-1983 to recover certain amount due on the foot of the account for the period from accounting year 1977-78 to 1981-82. The plaintiff alleged that it maintains accounts of different firms in its account books. Advances made by the plaintiff to the defendants and repayments thereof, are debited and credited respectively in the accounts of the defendants in books of accounts maintained by the plaintiff. The balance, at the end of each accounting year was forwarded in the next year. According to the plaintiff, the account books of the defendants are open and running account and the amount received by the plaintiff from defendants was credited towards the general balance due at the end of the account and not towards any particular advance made to the defendants. The last advance made by the plaintiff to the defendants was on 15-1-1980 and the last payment received by the plaintiff from the defendant No. 5 towards the general balance due from the defendants was on 8-9-1981.