LALA SHANTI SWARUP vs MUNSHI SINGH & ORS.

The Supreme Court held that under Article 83 of the Indian Limitation Act, 1908, a vendor has the right to sue for indemnity when a purchaser fails to discharge an encumbrance, with the limitation period commencing only upon actual damnification. In this case, the respondents' suit for recovery of losses due to the appellants' failure to pay off a mortgage was deemed timely as it was filed within six years from the date they were actually damnified, which was after the execution of a self-liquidating mortgage on February 25, 1943. The court ruled that the mere existence of a mortgage decree from 1937 did not trigger the limitation period, affirming the lower court's decision that the suit was not time-barred.