BAIJNATH MELARAM Vs. NAVINCHANDRA P. PATIL

JUDGEMENT

(1.) THE only short question involved in this Appeal by the Appellants (Original Defendants) is whether the suit claim is barred by limitation. The learned City Civil Court, Mumbai, having decided the question in favour of the Plaintiff, the aggrieved Defendants have come in Appeal. The facts, which are relevant for the purpose of deciding the said question, are undisputed and in brief, they are as under :

(2.) UNDER an agreement dated 7.1.1966, the Respondent (Original plaintiff) sold a ship called 'S.S. August Levers' to the defendants for a price of Rs. 3,47,500/ - and delivered the said ship to the defendants on 11th June, 1966. The agreement of sale contained a clause which put an obligation on the defendants to pay import duty, octroi, sales tax, etc, payable to the Government or any other authority. It further provided that in case any such tax or duty was charged, demanded or recovered by the Government or any authority from the plaintiff, then the defendants shall forthwith, on demand, pay or reimburse the Plaintiff for the same.

(3.) THE defendants resisted the suit and contended, inter alia, that Clause 7 in the agreement, which provided for reimbursement of sales tax paid by the vendor -plaintiff was not applicable and that it was voidable at his option. The Defendants also contended that the said clause was inserted in the agreement on account of misrepresentation. The main contention of the Defendants was, however, that the suit claim was barred by limitation.