BAL BROTHERS PVT LTD Vs. S TARA SINGH

JUDGEMENT

(1.) The plaintiff-appellant has filed this appeal against the judgment and decree of the Additional District Judge, Ludhiana, dated 19th October, 1968, whereby the judgment and decree of the trial Court dismissing the suit, have been maintained.

(2.) The plaintiff-appellant, a private limited company with its registered office at Ludhiana, filed a suit for the realization of Rs. 700/- on the basis of instalment bond dated 28th August, 1961. It was executed by Harbans Kaur, principal debtor and Tara Singh and Dalip Singh, the two sureties. By this bond they agreed to pay Rs. 5,000/- to the plaintiff in monthly instalments of Rs. 100/- each payable on 15th of each month. It also provided that in case of default in the payment of any instalment the whole amount then remaining due to the plaintiff shall be payable at once and the sureties will be liable jointly and severally to pay the same. Harbans Kaur paid upto November, 1963 by making the last payment on 7th December, 1963. In this way the default occurred on 1st January, 1964, but instead of filing suit for recovery of the remaining amount, the appellant instituted suit for realization of the amount of seven instalments which had fallen due from 15th November, 1964 to 15th May, 1965. Later on, the plaintiff withdrew the suit against Harbans Kaur and Harchand Singh and it was processed only against the sureties, who filed the written statement, which gave rise to 9 issues, including the two which were treated as preliminary by the trial Court. The said issues read thus :-

(3.) The only question to be decided in this appeal, is the interpretation of Article 37 of the Limitation Act, 1963, which is to the following effect :-