THE HINDUSTAN FOREST COMPANY vs LAL CHAND AND OTHERS

The Supreme Court ruled that Article 115 of the Jammu and Kashmir Limitation Act, 1995, which allows for a six-year limitation period for suits based on mutual accounts with reciprocal demands, was not applicable in this case. The court held that the payments made by the buyer were not independent obligations but rather discharges of the buyer's obligations under the contract for goods delivered. Consequently, the suit filed by the sellers for the balance of the price due was barred by limitation as it did not meet the criteria for a mutual account.