RADHA KISHUN Vs. HIRA LAL SAH

JUDGEMENT

(1.) The plaintiffs and defendants are respectively firms of Indian bankers who are close neighbours. They had business relations for a considerable period, the business beginning on the 5 Chait in the Fasli year 1309 and the relations ending on the 27 Katik in the Fasli year 1324.

(2.) The account is sometimes described as a mutual current account but as far as their Lordships have been permitted to see the papers, it was a one-sided account of loans made from time to time by the plaintiffs firm and payments from time to time in whole or partial discharge of the advances. But the question of mutuality is not a material one.

(3.) Plaintiffs sued for the balance of the account with compound interest at the rate of eight annas per cent, per mensem. The defendants claimed to reduce the rate of interest by one pie and dispute the claim of compound interest, and further pleaded that all the earlier items were barred by the Indian Limitation Act. The way in which they put their case as to limitation was this : they said that in the Fasli year 1321 they were in money difficulties, and that the plaintiffs refused to make them further advances; that there was an interval of about sixteen months and then a new arrangement was come to by which the plaintiffs agreed to make advances provided that the sums advanced never exceeded Rs. 5,000 and provided that each advance was repaid before another was made; and the defendants claimed to appropriate their payments made, since the new arrangement began, to the new advances.