SYNDICATE BANK versus MR. PRABHA D. NAIK AND ANR. ETC.

Citation: [2001] 2 S.C.R. 714 · Decided: 26-03-2001 · Supreme Court of India · Bench: B.N. KIRPAL · Disposal: Dismissed

Cited by 3 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
SYNDICATE BANK 
v. 
MR. PRABHA D. NAIK AND ANR. ETC. 
MARCH 26, 2001 
B 
[B.N. KIRPAL, U.C. BANERJEE AND BRIJESH KUMAR, JJ.] 
limitation Act, 1963-Section 29(2)-Portuguese Civil Cod£-Article 
535-Default in repayment of loan granted by Bank in Goa-Suit for recov-
ery-Law of limitation-Dismissal of suit being barred by limitation under 
C 
limitation Act-Application of Portuguese Civil Code for limitation-Held, 
Civil Code has no application with regard to limitation as it has been impliedly 
repealed by two Central enactments, the Indian Contract Act, 1872 and 
Negotiable lnstruments Act, 1881-limitation Act rightly applied-Goa, Daman 
and Diu Administration, 1962-Section 5. 
D 
Interpretation of Statutes : 
Doctrine of implied repeal-Held, the doctrine is applied when there is 
no express repeal by way of special legislation. 
Respondent defaulted in repayment of loan granted by appellant· 
E 
Bank in Goa. The Bank filed a suit for recovery of amount with future 
interest before Trial Court. The suit was dismissed by the Trial Court as 
having barred by limitation under Limitation Act, 1963. High Court also 
dismissed the appeal on that ground. Hence the appeal. 
The Appellant-Bank contended that the law of limitation which is 
F 
applicable in Goa is the Portuguese Civil Code and not the Limitation Act, 
1963; that the Code continues to be operative as it has not been repealed by 
a specific legislation as required by Section 5 of Goa, Daman and Diu 
Administration, 1962; that the Portuguese Civil Code has not been ex· 
pressly repealed by any repealing statute; that the Limitation Act, 1963 
G 
expressly repeals the Limitation Act, 1908 and not the local laws like the 
Code; that. the common man in Goa continues to take guidance from the 
Code for bis day to day business and other personal obligations creating 
rights and liabilities. 
Respondents contended that the Limitation Act is applicable in Goa 
H 
as it extends to the whole of India except the State of Jammu and Kashmir 
714 
> 
SYNDICATE BANK v. MR. PRABHA D. NAIK 
as perSection 1 (2) of the Act. 
Dismissing the appeal, the Court 
715 
HELD : 1. Article 535 of the Portuguese Civil Code containing the 
provisions of limitation in Chapter ill regulating the contracts stands 
replaced by the Indian Contract Act. The prescribed period for limitation 
pertaining to the contracts being in the same Chapter under Contract Act 
cannot be said to be surviving as an independent provision rather than 
going along with the other provisions of the Contract which by reason of 
adaptation of Contract Act stands replaced. It is thus said to be an implied 
repeal. The necessity of having an express repeal was never felt by reason 
of the factum of adaptation of Indian Contract Act in so far as Chapter II 
is concerned. Either the Chapter survive in il• entirety or it peri•hes in its 
all spheres - it is one chapter dealing with contract and prescribed the 
period of enforcement of the same. No dissection is possible. [723-B-D] 
1.2. The cause of action of the suit viz. money lent and advanced in 
terms of the agreement stands squarely governed by the Contract Act read 
with the Negotiable Instrument Act by reason of the admitted execution of 
a Promissory Note and as such cannot he said to be governed by the Code. 
In the event the right to initiate the proceedings goes out of the ambit of the 
Code, the latter cannot govern its enforceability. The Civil Code is a 
complete Code in itself. Its applicability was not restrictive in any way 
whatsoever prior to the issuance of notification adapting into a State Law, 
the two statutes. The Portuguese Civil Code cannot he termed to he a 
statute of limitation, as such it can not have its operation extended to 
prevent the enforcement of independently existing rights of action. The 
Civil Code cannot but he ascribed to be a compilation of comprehensive 
law in the State which meets the need of the situation alongwith a specific 
period for extinguishment of the same. Either the Code applies in its 
entirety or it does not - there is no half way about it. (724-F-H; 725-A-B] 
2.1. By reason of the existence of right under Indian Law, i.e. Con-
tract Act and Negotiable Instrument Act, the extinction of remedy under 
the Portuguese Law cannot hut be deemed to he impliedly repealed. The 
doctrine of implied repeal has to take its place in the facts of the matter 
under consideration. The doctrine of implied repeal is not to be fav

Excerpt shown. Read the full judgment & AI analysis in Lexace.