Syndicate Bank vs Channaveerappa Beleri & Ors

The Supreme Court ruled that the dismissal of the Bank's suit for recovery of dues was erroneous as it was based on the ground of limitation without considering the applicability of Section 18 of the Limitation Act, which allows for the extension of the limitation period upon acknowledgment of liability. The Court emphasized that the acknowledgment made by the respondents in their reply dated 31.10.1987 constituted a valid acknowledgment under the Limitation Act, thus resetting the limitation period. Consequently, the Court set aside the High Court's judgment and remanded the case for consideration on merits.