NAINI TAL HOTEL CO LTD Vs. MUNICIPAL BOARD

JUDGEMENT

(1.) This appeal raises an interesting question of limitation. The appellant is the Naini Tal Hotel Co. Ltd., while the respondent is the Municipal Board of Naini Tal. The Municipal Board sued the Hotel Co. for Rs. 6979-1-0 on account of electric energy (both for light and power) supplied to the Royal Hotel Annexe called Waverly Quarters between 1 September 1986 and 7 June 1941, incorrect bills having been submitted throughout this period owing to a mistake having been made by the meter reader.

(2.) In the Court below the defendant company did not admit that any mistake had occurred, but the finding on this issue was against the company and the finding has not been disputed before us. The mistake was said to, have occurred because the meter reader thought that the last digit was to be ignored and thus entered in his hand-book only one tenth of what should have been entered. There was this excuse for the mistake that the meters used by the Board varied and some showed decimal points before the last digit. What is surprising, however, is that no one should have noticed that the consumption at the Waverly Quarters throughout this long period was only a fraction of what it had been previously.

(3.) These being the now undisputed facts the only question for determination is whether the claim can be allowed for the whole period of nearly five years. The Civil Judge held that the case was covered by Art. 96, Limitation Act, and so no part of the claim was time-barred. He decreed the suit for the whole claim with costs and future interest at six per cent.