(1.) In this case the plaintiffs were mortgagees under a registered mortgage bond granted by the defendant. They raised action for the sum of Rs, 52,000 odd, said to be due under the mortgage. The defendant denied that the whole sum was due, as he said the plaintiffs had not given him credit for two sums of Rs. 11,000 odd and Rs. 8,000 odd, which he had paid, such payments having originally been endorsed on the bond, but the endorsations having been erased by the plaintiffs.
(2.) The Subordinate Judge gave effect to this contention, but made the ordinary preliminary decree for the sum of Rs. 19,000, being the sum due, with proper computation of interest, after allowing credit for the above-mentioned two sums. The date of this decree was February 22, 1915. The six months of grace for payment would, therefore, expire on August 22, 1915. The mortgagees appealed against the decree. The appeal was heard, and the appeal dismissed on May 21, 1917.
(3.) On February 21, 1919, application was made for a final decree. The defendants opposed the application on the ground that it was time-barred under Art. 181 of the Schedule to the Limitation Act, 1908. The terms of that Art. of the schedule are : "Applications for which no period of limitation is provided elsewhere in this Schedule; period of limitation three years; time from which period begins to run, when the right to apply accrues."