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Issues: (i) Whether the English Statute of Limitations applied to the territories under the government of the East India Company and whether the words "beyond the seas" included residence in India outside those territories. (ii) Whether, in a suit between Hindoo parties, the plea of limitation was maintainable consistently with the Bombay Charter.
Issue (i): Whether the English Statute of Limitations applied to the territories under the government of the East India Company and whether the words "beyond the seas" included residence in India outside those territories.
Analysis: The legal import of the words "beyond the seas" was examined by reference to earlier English authorities, statutory usage, and commentary. The expression had long been treated as synonymous with being "out of the realm" and, in legal effect, with being outside the territories to which the statute was meant to operate. On that construction, the statute could be applied to India without defeating the saving in section 7, because residence outside the East India Company's territories answered the statutory description.
Conclusion: The Statute of Limitations applied to India, and residence in India outside the East India Company's territories was within the saving expression "beyond the seas".
Issue (ii): Whether, in a suit between Hindoo parties, the plea of limitation was maintainable consistently with the Bombay Charter.
Analysis: The Charter required native law to govern matters of inheritance, succession, contract, and dealing, but it also required the Supreme Court to frame its own procedure and process. A law of limitation was treated as part of procedure and as a matter of lex fori, not as a rule governing substantive rights. Allowing the plea therefore did not alter the native law applicable to the underlying transaction and was consistent with the Charter's scheme.
Conclusion: The plea of limitation was maintainable against the Hindoo parties and was not inconsistent with the Charter.
Final Conclusion: The judgment of the Supreme Court was set aside, the appeal succeeded, and the matter was sent back in accordance with the Committee's opinion.
Ratio Decidendi: A statute of limitation concerns the remedy and local procedure rather than the substantive right, and its saving words must be construed according to their established legal meaning so as to preserve the statutory protection intended by the Legislature.