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KHAN BAHADUR SHAPOOR FREDOOM MAZDA versus DURGA PROSAD CHAMARIA AND OTHERS

Citation: [1962] 1 S.C.R. 140 · Decided: 01-03-1961 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

Morch I. 
140 
SUPREME COURT REPORTS 
[1962] 
KHAN BAHADUR SHAPOOR FREDOOM 
MAZDA 
v. 
DURGA PROSAD CHAMARIA AND OTHERS 
(P. B. GAJENDRAGADKAR and K. N. WANCHOO, JJ.) 
Limitation-Computation of fresh period of limitation-Leiter 
written by mortgagor to mortgagee-If acknowledgment of liability-
Indian Limitation Act, 1908 (9 of 1908), s. 19. 
In a mortgage suit brought by him, the respondent I, the 
mortgagee, pleaded that limitation was saved by a letter written 
to him by the mortgagor, the respondent 2, which amounted to 
acknowledgment under s. rg of the Indian Limitation Act. There 
was a prior mortgage and before writing the letter in question 
the mortgagor had written another letter appealing to respon-
dent r to save the property from being sold at the instance of 
the prior mortgagee. Thereupon the respondent No. I paid the 
required amount and the threatened sale was averted. The pro-
perty was again advertised for sale and that was why the letter 
in question was written; it ran as follows,-
"Chandni Bazar is again advertised for sale on Friday the 
rrth instant. I am afraid it will go very cheap. I had a private 
offer of Rs. 2,75,000 a few days ago but as soon ·as they heard 
it was advertised by the Registrar they withdrew. As you are 
interested why do not you take up the whole. There is only 
about 70,000 due to the mortgagee-a payment of Rs. rn,ooo will 
stop the sale". 
The question was whether this letter amounted to an acknow-
ledgment of the respondent r"s right as mortgagee under s. rg of 
the Indian Limitation Act. The trial Judge he.Id that it did not, 
but the Court of appeal took the contrary view. The auction-
purchaser appealed to this Court. 
Held, that it was obvious that the interest mentioned in the 
letter in the context of the previous one was none other than 
that of respondent r· as a puisne mortgagee and the appeal to 
take up the whole meant the entirety of the mortgagee's interest 
including that of the prior mortgagee; 
Since admittedly the only subsisting relation between the 
parties at the date of the letter was that of mortgagee and mort-
gagor and the letter acknowledged the existence of that jural 
relationship, it clearly amounted to an acknowledgment under 
s. 19 of the Act. 
Held, further, that the essential requirement for sustaining 
a plea of acknowledgment under s. rg of the Act is that the 
statement on which it is sought to be founded must relate to a 
.. 
I-
• 
I S.C.R. SUPREME COURT REPORTS 
141 
subsisting liability, indicate the existence of the jural relation-
ship between the parties and must be intended, either expressly Kh 
8 h d 
or impliedly, to admit that i·ural relationship. 
Sh pan 
Fa ailur 
a oor 
te oom 
The words used in a particular statement must be construed 
Mazda 
in the light of its own tenor and according to the context and 
v. 
unless the words used are identical and the interest is similar, 
Durga Prosad 
previous decisions interpreting somewhat similar documents are Chaniaria & Ors. 
not of much help. 
Green v. Humphreys, (r884) 26 Ch. D. 474, referred to. 
Beti Maharani v. Collector of Etawah, (1894) LR. 22 I.A. 31, 
Sukhamoni Choudhrani v. lshan Chunder Roy, (1897) L.R. 25 I.A. 
95, Munshi Lal v. Hira Lal, I.LR. 1947 All. rt and Swaminatha 
Odayar v. Subbarama Ayyar, (1927) I.LR. 50 'llad. 548, considered. 
Dharma Vithal v. Gov\nd Sadvallwr, (1881) I.LR. 8 Born. 99, 
held inapplicable. 
CIVIL 
APPELLATE JURISDICTION: 
Civil 
Appeal 
No. 77 of 1957. 
Appeal from the judgment and decree dated the 
August 6, 1954, of the Calcutta High Court in Appeal 
from Original Decree No. 73 of 1952. 
M. C. Setalvad, Attorney-General for India, W. S. 
Barlingay and A. G. Ratnaparkhi, for the appellant. 
A. V. Viswanatha Sastri and P. K. Chatterjee, for 
respondent No. 1. 
1961. March 1. 
The Judgment of the Court was 
delivered by 
GAJENDRAGADKAR, J.-This appeal arises from a Gajenil,.gadkar J. 
suit filed by respondent 1 Durga Prosad Chamaria 
against respondent 2 the heirs of John Carapiet Gal-
staun and others in which he sought to recover 
Rs. 4,64,213-5-3 on the mortgages in suit. 
He had 
prayed for a preliminary mortgage decree according to 
0. XXXlV, r. 4 of the Code of Civil Procedure and 
had asked for the appointment of a receiver in that 
behalf. The said mortgages were created by delivery 
of documents of title to immovable properties by the 
mortgagor John Carapiet Galstaun who died pending 
the suit. The properties mortgaged consisted 

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