Limitation under a declaratory decree turns on finality: appeal abatement can start the clock later than the decree date.

Under Article 2(b) of the Punjab Limitation (Custom) Act, 1920, limitation for a suit for possession runs from the later of the accrual of the right to sue or the date of the declaratory decree. Where an appeal against the declaratory decree later abates, the abatement gives finality to the litigation even though it is not a merits adjudication. On that basis, the decree becomes final only on the date of abatement, and that later date is the relevant starting point for limitation.

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Issues: Whether, for a suit for possession under Article 2(b) of the Punjab Limitation (Custom) Act, 1920, the period of limitation ran from the date of the earlier declaratory decree or from the later date when the second appeal abated.

Analysis: Article 2(b) provides two starting points for limitation, namely the date on which the right to sue accrues and the date on which the declaratory decree is obtained, whichever is later. An order of abatement, though not an adjudication on merits, gives finality to the litigation because the pending appeal comes to an end unless the abatement is set aside. The Court applied the principle that finality is not confined to a merits decision and held that the declaratory decree attained finality only when the second appeal abated. On that footing, the later date of abatement supplied the relevant starting point for limitation.

Conclusion: The suit was not barred by limitation; the limitation period began from the date of abatement, not from the date of the earlier declaratory decree, and the appeal succeeded.

Final Conclusion: The High Court's view on limitation was set aside and the appellants obtained possession-related relief because the later abatement order was treated as the point of finality for computing limitation.

Ratio Decidendi: Where a declaratory decree is followed by an appeal that later abates, the abatement gives finality to the decree and becomes the relevant date for computing limitation under a provision that ties limitation to the later of accrual of the right to sue or obtaining the declaratory decree.

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