RAYALASEEMA GRAMEENA BANK Vs. B YOHAN

JUDGEMENT

(1.) Plaintiff is the petitioner. On 31-3-1981 the 1st defendant borrowed a sum of Rs. 3,500/- from the plaintiff-bank for agricultural purposes. Defendants 2 and 3 stood sureties for the 1st defendant. All the defendants jointly executed a loan-agreement undertaking to repay the loan amount with interest in three yearly instalments, the due dates being 30-3-1982 31-3-1983 and 31-3-1984. The amount due towards the 1st instalment was paid as agreed to. However, the defendants failed to pay the balance-amount towards the other two instalments due on 31-3-1983 and 31-3-1984. Therefore on 31-3-1986 the suit was filed.

(2.) The lower-Court found that the limitation starts running from 30-3-1982 on which date the balance due towards the first instalment was paid and therefor the suit ought to have been filed on or before 30-3-1985. and since it was filed on 31-3-1986 long thereafter the same is barred by limitation. Accordingly it rejected the plaint. Hence this revision.

(3.) The learned Counsel for the petitioner submitted that as per Article 36 of the LIMITATION ACT, 1963 in cases where the amount is agreed to be repaid in instalments, it is the dale of expiration of the instalment due for' which default is committed that counts as the starting paint of limitation, and since in this case the defendants committed default in making payment of the 2nd instalment due on 31-3-1983 the limitation starts to run from 31-3-1983 and therefore the suit filed on 31-3-1986 is within the period of limitation.