https://www.taxtmi.com/caselaws?id=300628 An account stated under Article 64 of Schedule 1, Limitation Act, 1908 is not limited to reciprocal money claims in a narrow sense. Where the parties mutually agree the items on both sides of a money account, treat them as discharging one another pro tanto, and strike a balance payable as a new debt, the settlement is bilateral and creates a fresh cause of action. Purely financial dealings between lender and borrower can support such a settlement, and the arrangement is not defeated merely because some items may be time-barred. The settlement was therefore treated as an account stated. en-us Mon, 14 May 1934 00:00:00 +0530 Wed, 16 Feb 2022 15:00:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=300628 An account stated under Article 64 of Schedule 1, Limitation Act, 1908 is not limited to reciprocal money claims in a narrow sense. Where the parties mutually agree the items on both sides of a money account, treat them as discharging one another pro tanto, and strike a balance payable as a new debt, the settlement is bilateral and creates a fresh cause of action. Purely financial dealings between lender and borrower can support such a settlement, and the arrangement is not defeated merely because some items may be time-barred. The settlement was therefore treated as an account stated. Case-Laws Indian Laws Mon, 14 May 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=300628