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        1940 (9) TMI 20 - HC - Indian Laws

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        Limitation on administration bond suits runs from breach of condition; assignment does not create a fresh cause of action. A suit on an administration bond assigned under Section 292 of the Indian Succession Act was held to fall within Article 68 of the Limitation Act, 1908, ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Limitation on administration bond suits runs from breach of condition; assignment does not create a fresh cause of action.

                              A suit on an administration bond assigned under Section 292 of the Indian Succession Act was held to fall within Article 68 of the Limitation Act, 1908, which gives three years from breach of the bond's condition. An assignee under Section 292 acquires only the right to sue on the existing bond; the assignment does not create a fresh cause of action or postpone limitation. Limitation began at the latest on the death of the administratrix, when the condition was broken, not on the plaintiff's attainment of majority or on assignment. The suit, brought after that period, was time-barred.




                              Issues: Whether a suit on an administration bond assigned under Section 292 of the Indian Succession Act, 1925 was governed by Article 68 of the Limitation Act, 1908, and whether the assignment created a fresh cause of action or postponed the commencement of limitation.

                              Analysis: The bond was a bond subject to a condition within the meaning of the Limitation Act. Article 68 applied to suits on such bonds and prescribed a period of three years from the time when the condition was broken. The Court held that an assignee under Section 292 merely acquires the right to sue on the existing bond and does not obtain a new cause of action. The assignment is one of title and remedy, not a new substantive right for limitation purposes. The condition of the bond was broken at the latest on the death of the administratrix, and not when the plaintiff later attained majority or when the bond was assigned. The suit, filed more than three years after that date, was therefore barred.

                              Conclusion: The suit was barred by limitation under Article 68, and the assignment under Section 292 did not create a fresh starting point for limitation. The decision against the plaintiff was erroneous.

                              Final Conclusion: The appeal succeeded, the cross-appeal failed, and the claim on the administration bond was held time-barred.

                              Ratio Decidendi: An assignee of an administration bond under Section 292 of the Indian Succession Act, 1925 sues on the existing bond and does not acquire a fresh cause of action for limitation purposes; limitation runs from the breach of the bond's condition.


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