Mutual account requires reciprocal demands; advance payments under a supply contract do not make the account mutual.

Article 115 of the Jammu and Kashmir Limitation Act applies only where the dealings amount to a mutual, open and current account with reciprocal demands. Advance payments under a supply contract, and payments made towards goods delivered, do not by themselves create independent obligations on the seller or convert the account into mutual dealings. Delayed deliveries and delayed monthly payments did not alter the contractual character of the transactions. On that footing, the limitation provision was inapplicable and the suit for recovery of price was treated as time-barred.

---

---

Issues: Whether the suit for recovery of price was governed by Article 115 of the Jammu and Kashmir Limitation Act on the footing that the dealings between the parties constituted a mutual, open and current account with reciprocal demands.

Analysis: Article 115 applies only where there are reciprocal demands creating independent obligations on both sides. The account between the parties was not mutual. The buyer's payments were made either in advance under the contract or towards the price of goods delivered, and did not create any independent obligation on the sellers in favour of the buyer. The advance payment was merely part of the contractual machinery for payment of the price and was to be adjusted against future deliveries. Delayed deliveries and delayed monthly payments did not alter the nature of the contract or convert the transactions into mutual dealings.

Conclusion: Article 115 did not apply, and the suit was barred by limitation.

Final Conclusion: The appeal succeeded and the decree of the trial court dismissing the suit as time-barred was restored.

Ratio Decidendi: A mutual account requiring reciprocal demands arises only where each side creates independent obligations on the other; advance payments under a supply contract and payments towards delivered goods do not, by themselves, constitute such mutual dealings.

---