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Gannon Dunkerley & Co. Ltd vs Union Of India on 28 October, 1969

33. The trial court has relied upon the decision of the Supreme Court reported in AIR 1970 SC 1433 (GANNON DUNKERLEY & CO. v. UNION OF INDIA), where the Supreme Court applied Article 120 of the old Limitation Act in respect of claim based on enhancement of rate. Even applying ratio of the said decision and applying Article 113 of the Limitation Act, 1963, the suit was to be filed within three years from 13.1.1981 when the final bill was paid and received under protest.. The conclusion of the trial court that contract was kept alive till 6.11.1981, when the reply was given by the Advocate for the defendant cannot be accepted. If the amount claimed was on the basis of the work done as per the original contract, the date of final bill or payment would be the starting point of limitation. Even otherwise if the claim is for additional work, escalation, etc., which are not contemplated in the original contract, the cause of action obviously arose when notwithstanding the claim of the plaintiff for higher amount, lesser amount was paid on 13.1.1981, on which date the plaintiff had received the amount under protest according to the plaintiff's case and in full and final settlement according to the defendant's case. Even assuming that if it is not received as full and final settlement and it was received under protest on 13.1.1981, obviously that is the date on which the cause of action arose.
Supreme Court of India Cites 4 - Cited by 52 - J C Shah - Full Document
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