KHERAPATI VANIJYA LIMITED Vs. LONGVIEW TEA CO. LIMITED

JUDGEMENT

(1.) The plaintiff is in appeal against the dismissal of its claim for recovery of balance loan and interest on the ground of limitation.

(2.) The receipt of the loan by way of an inter-corporate deposit in May, 1998 is not in dispute. The interest or the rate of interest payable on the deposit is also not in dispute. Between 1998 and October, 2001 the defendant repaid Rs.1 lakh out of the principal amount of Rs.25 lakh and paid the interest due till such date. No payment was made by the defendant from or about October 19, 2001 till or about January 29, 2006. According to the plaintiff, the defendant paid a further sum of Rs.24 lakh between January 29, 2006 and February 3, 2008 but failed to make any payment thereafter, leaving an unpaid balance of Rs.46,57,024/- as at December 31, 2010. The claim was on account of such sum and further interest.

(3.) According to the plaintiff, a demand notice was issued to the defendant on January 28, 2011, detailing the claim of the plaintiff. The plaint does not refer to any reply having been received to the notice. The suit was instituted on or about February 3, 2011.