1969 (3) TMI 99

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....that a sum of ₹ 100 was sent by the respondent to the petitioner. On a consideration of the merits of the case, the lower appellate Court found that the sum of ₹ 100 was so sent towards the suit promissory note debt and not towards another loan as contended by the respondent. The appellate Court, however, found as a fact that the sum of ₹ 100 sent by money order by the respondent was received by the petitioner or 18th July, 1962 and therefore held that the payment should be deemed to have been made when the money order was received by the petitioner and hence the suit was dismissed as out of time. The lower appellate Court would not accept the contention that the payment made by a debtor in the post office will tantamount ....

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....928, an acknowledgment of the payment appears in the handwriting of, or in a writing signed by the person making the payment. Explanation.--For the purposes of this section (a) where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment; (b) 'debt' does not include money payable under a decree or order of a Court. 4. It has two distinct and separable limbs. The first one is that the payment should be on account of a debt and that such a payment should constitute an acknowledgment. The second is that there should appear by reason of such payment, an acknowledgment in the handwriting of the debtor or the person making the payment under authority. In thi....

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.... by the debtor to the creditor, as evidenced by the cheque, is to be deemed to take effect from the date when the cheque was drawn and posted by the debtor to the creditor. The date when the creditor realises the cheque is of no significance. If this is therefore the principle which has to be applied when payments area made by cheques, I do not see any reason why the same principle should not be made applicable to a case where money is sent through the media of post office. Every one is aware of the form prescribed for sending the money by money orders wherein a debtor subscribes his signature and also signifies therein his assent for the payment of the money so sent by him to the creditor named in that form. This writing in the money order....

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.... under consideration Rajamannar, C.J., would not agree with the opinion of a single Judge of the Patna High Court who was of the view that if an amount was sent by the debtor by money order but there was nothing in the money order coupon to say on what account the remittance was made, it would not amount to an acknowledgment as it did not appear on its face to be such. The learned Judges after quoting the words of Rowland, J., which stated: I think the acknowledgment must appear on its face to be on account of the debt or, at least on account of a debt, whereas in the money order coupon there is nothing at all to show on what account the remittance was made. observed that they would not agree with the view with respect and said that the....