1927 JTR(SC) 9
1927 AIR(PC) 72 ; 1927 26 LW 134
Privy Council
Sir John Wallis, Salvesen, Justice Viscount Dunedin, JJ.
Punjab Cotton Press Co. Ltd. -Appellant
Versus
Secretary of State -Resopndent
Privy Council Appeals Nos. 41, 39 and 40 of 1925
Decided On : 11-02-1927
The shorter limitation period for acts in pursuance of an enactment applies only if the act was actually performed for the purpose specified in that enactment; a factual determination is required if the plaintiff's averments contradict the statutory purpose.
Act
Referred
:LIMITATION ACT: Art.36, Art.2
NORTHERN INDIA CANAL AND DRAINAGE ACT: S.15
(A) Limitation Act - Article 36 and Article 2 - Canal Act - Section 16 - Compensation for malfeasance, misfeasance or non-feasance - Limitation period of two years under Article 36 - Compensation for acts in pursuance of an enactment - Limitation period of ninety days under Article 2 - Where an act is performed to protect a railway embankment rather than to avoid accident to a canal, it may not fall under the specific statutory protection of the Canal Act, and thus the shorter limitation period under Article 2 may not apply.
(B) Limitation - Application of Articles - Where multiple suits are filed, those filed beyond the two-year period for general misfeasance are barred by Article 36, regardless of whether the lower court erroneously cited Article 2 as the ground for dismissal.
Facts of the case:
The government constructed irrigation canals to manage river floods. To divert spilt water and protect a railway embankment, officials created cuts in the canal, which allegedly caused damage to the plaintiffs' mills. Three suits were filed; one within two years of the incident and two after the expiry of two years.
Findings of Court:
The two suits filed after two years are barred by limitation under Article 36. Regarding the suit filed within two years, the application of the ninety-day limitation under Article 2 depends on whether the act was done in pursuance of an enactment (specifically to protect the canal). Since the plaintiffs aver the act was to protect a railway, the court cannot assume it was for the canal's protection without a factual determination.
Issues: Whether the suits were barred by limitation under Article 36 or Article 2 of the Limitation Act, and whether the actions taken by officials fell under the protections of the Canal Act.
Ratio Decidendi: A claim for compensation for an act alleged to be in pursuance of an enactment is subject to a ninety-day limitation period. However, if the facts averred by the plaintiff suggest the act was not for the purpose specified in the enactment, the court must determine the facts before applying the shorter limitation period.
Result: Case remanded.
(B) Limitation - Application of Articles - Where multiple suits are filed, those filed beyond the two-year period for general misfeasance are barred by Article 36, regardless of whether the lower court erroneously cited Article 2 as the ground for dismissal.
Facts of the case:
The government constructed irrigation canals to manage river floods. To divert spilt water and protect a railway embankment, officials created cuts in the canal, which allegedly caused damage to the plaintiffs' mills. Three suits were filed; one within two years of the incident and two after the expiry of two years.
Findings of Court:
The two suits filed after two years are barred by limitation under Article 36. Regarding the suit filed within two years, the application of the ninety-day limitation under Article 2 depends on whether the act was done in pursuance of an enactment (specifically to protect the canal). Since the plaintiffs aver the act was to protect a railway, the court cannot assume it was for the canal's protection without a factual determination.
Issues: Whether the suits were barred by limitation under Article 36 or Article 2 of the Limitation Act, and whether the actions taken by officials fell under the protections of the Canal Act.
Ratio Decidendi: A claim for compensation for an act alleged to be in pursuance of an enactment is subject to a ninety-day limitation period. However, if the facts averred by the plaintiff suggest the act was not for the purpose specified in the enactment, the court must determine the facts before applying the shorter limitation period.
Result: Case remanded.
Solicitor, India Office, S.L. Polak, S.L. Polak, K. Brown , A.M. Dunne, Dube , L.De Gruyther
Viscount Dunedin. -
These three suits have been consolidated and they have all been decided on the same plea by the learned Judges of the High Court at Lahore, but in truth they are in a different position, because the first suit was brought before the expiry of two years and the other two suits were not brought until the expiry of the two years, in other words, the first suit is not hit by the limitation of Art. 36 of the First Schedule of the Limitation Act, which reads as follows :
For compensation for any malfeasance, misfeasance or non feasance, independent of contract and not herein specially provided for, limitation two years.
But the two other suits are hit and therefore in so far as the two latter suits were dismissed, the judgment was right, although their Lordships do not think it went upon the right ground, be cause it was put upon Art. 2 of the Limitation Act, instead of upon Art. 36. The first suit, however, was brought within two years, and, therefore, so far as limitation is concerned, it is either hit under Art. 2 or not at all. Art. 2 is : For compensation for doing or for omitting to do an act alleged to be in pursuance of any enactment for the time being in British India.
and the period is ninety days.
What is complained of here is that the Government, who are the people in charge of the canals, constructed a vast set of irrigation canals in the neighbourhood of the Ravi river. The Ravi river was prone to frequent floods and these canals not only acted as irrigation canals, but they also acted to a certain extent as relievers of the river in flood; but the riyer had been apt to flood to an extent which the canals could not relieve, and accordingly spilt water came upon certain land on either side of the canal and, at a certain place, in order to deal with this spilt water and let it away to the ordinary level of the country, the officials, first of all, cut three cuts through the canal at a place marked M. on the map (not shown here). The result of that was to let water down from one side of the canal, namely, the side nearest the Ravi river, to the other side and then down the water tumbled; then there became a great accumulation of water lower down and, in order to let that water away, the configuration of ground being such that the Ravi River at this place was in a position well to left of the canal, looking the way that the water is flowing, they recently cut two other cuts, letting the water back again to its old side next the Ravi river. They cut at a place which is marked A on the plan, a cut quite close to where the railway passes on a high embankment, and they did so as alleged really because they were afraid, if this accumulation went on, the railway embankment and the railway might be injured. The result of that, as the plaintiffs' say, was to injure their mills. It is quite clear that, upon the plaintiffs' showing, this was an act which the defendants performed at their own hands, and which, so far as statutes were concerned, they do not seem on the statement contained in the plaint in a position to justify. No doubt, if they can show that what was done falls within the provisions of the Canal Act, that is to say, if they can show that it was really done, as S.16 (15 ?) of the Canal Act says, in order to avoid accident to the canal, then they will come straight within the clause already mentioned, Art. 2 of the Second Schedule. But their Lordships think the lower Court has strayed into an error, in that they have taken that as if it were proved against the averment of the plaintiffs. The plaintiffs' case as it stands does not show that the action was done for any purpose of protecting the canal, but only for the purpose of protecting the railway and letting the water away. Accordingly, a determination of it at this stage depending upon Article 2 cannot stand; but, at the same time, when the case goes back, the learned Judge of first instance having gone into the facts, if the High Court, on taking up those facts, consider that it is proved as a matter of fact that the operation was really for the protection of the canal and that, consequently, it falls within S. 16 (15 ?) of the Canal Act, no doubt the plea of limitation will apply. In other words, the judgment is not necessarily wrong in applying the plea of limitation under Article 2, but it is wrong, because it has applied it to a case which is contrary to what is averred by the plaintiffs before it has come to a determination on the facts. The case will, therefore have to go back, and their Lordships will humbly advise His Majesty accordingly. As there has been divided success, there will be no costs awarded to either party.
Case remanded.