: 1 : sj-51-09=.sxw USJ IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION SUMMONS FOR JUDGMENT NO. 51 OF 2009 IN SUMMARY SUIT NO. 1898 OF 2008 Parshram Gaurishankar Purohit .. Plaintiffs v/s. IPCA Laboratories Ltd. .. Defendants ......... Ms. Uma Shah for the plaintiffs Mr. Vishal Kanade i/by Shiralkar & Co. for the defendants ......... CORAM : R.Y.GANOO, J. DATE : 5th OCTOBER, 2010 P.C. : 1. The plaintiffs claim that they had supplied goods to M/s. Innotech Pharma Ltd. covered by the invoices which are subject matter of the present suit. It is a common ground that liability of said M/s. Innotech Pharma Ltd. was taken over by the present defendants and that is how the present defendants M/s. IPCA Laboratories have been brought on record by deleting the name of original defendant M/s. Innotech Pharma Ltd. : 2 : sj-51-09=.sxw 2. The suit goods are alleged to have been delivered between 1st August, 1997 to 16th October, 1997. M/s. Innotech Pharma Ltd. were covered by BIFR w.e.f. 13th September, 1999 and after merger with the present defendants, the present defendants came out from BIFR on 2nd August, 2005. Plaintiffs claim that they came to know of the said facts of defendants coming out of BIFR only in 2006 and thereafter the present suit has been filed. 3. The learned Counsel for the plaintiffs relied upon admission of liability made by one Mr. A.S. Desai on behalf of defendants. The said admission is purported to have been made on the letter dated NIL addressed to M/s. Innotech Pharma Ltd. calling upon them to make the payments in regard to four bills. Learned Counsel for the plaintiffs contended that on account of said admission, defendants are liable to pay the dues to the plaintiffs. Learned Counsel for the plaintiffs had to concede that the said admission was made by Chartered Accountant of the company by name Mr. Desai. 4. Learned Counsel for the defendants contended that the suit is beyond the period of limitation because for the purposes of calculating the period within which the suit ought to have been filed, period from : 3 : sj-51-09=.sxw 16th October, 1997 to 12th September, 1999 and period from 2005 till 2008 should be considered. He also submitted that the Chartered Accountant cannot bind the Limited Company, as no specific authority was given to anybody to admit the claim on behalf of the defendants. 5. I have considered the relevant dates. The period of practically 2 years elapsed from supply of the goods i.e. 16th October, 1997. Till such time, the defendants went into BIFR. Even if the stand of the plaintiffs is accepted for a moment that they came to know about defendants coming out of BIFR by end of 2006, still 1½ years elapsed up to the date of filing of the suit. This means that the institution of the suit is beyond the period of limitation. The argument advanced by learned Counsel for the plaintiffs that admission of the liability by the Chartered Accountant of the defendants cannot be accepted because there is nothing to show specifically that the Chartered Accountant had express authority to admit any liability of the defendants. It is pertinent to note that the said admission of liability is during the period when the company was under the spell of BIFR. Under normal circumstances, a company which is under the spell of BIFR would hardly accept any liability. Looking to the facts and circumstances and relevant dates, I am inclined to observe that the suit is beyond the period of limitation. So called liability of admission by the Chartered Accountant cannot bind : 4 : sj-51-09=.sxw the defendants. Hence, defendants are entitled to unconditional leave to defend. Hence, following order is passed to dispose of the summons for judgment. ORDER (i) Unconditional leave to defendant the suit is granted to the defendants. (ii) Defendants to file written statement directly in the office on or before 26th November 2010. Serve copy of the same upon the advocate for the plaintiffs within 10 days from the date of filing of the written statement in the office. (iii) There shall be no order as to costs. (iv) Suit to come up in usual course. (R.Y.GANOO, J.)