Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1963 - Art. 55 - Work contracts - Successive breaches - Extension· of contract - Claim for damages- Delay by appellant-State in handing over the site to respondent resulting in non-completion of work within the stipulated period by respondent - Extension of period from time to time though compensation sought by respondent denied by the appellant Limitation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Limitation Act, 1963 - Art. 55 - Work contracts -Successive breaches - Extension· of contract - Claim fordamages- Delay by appellant-State in handing over the siteto respondent resulting in non-completion of work within thestipulated period by respondent - Extension of period fromtime to time, though compensation sought by respondentdenied by the appellant - Final Bill signed under protest byrespondent- Issuance of notice u/s. 80 CPC by respondentto appellant claiming damages-After period of three years,respondent filing of suit for damages for additional costs -Grant of compensation with 12% interest from the date ofstatutory notice by trial court- In appeal, High Court grantedinterest for an extended period and held that since there weresuccessive breaches by appellant, and the date of the lastbreach was relevant, the suit was within limitation- On appeal,held: The suit claims are damages incurred due to theextension of the contract period and the resultant damagesare incurred by respondent, thus, suit would fall under Article55 and not Article 113, which is a residuary provision - Therewere successive or multiple breaches, rather than continuousbreach - Each breach was distinct and complete in itself andgave rise to a separate cause of action for which respondentcould have rescinded the contract- Suit was required to befiled within three years of the happening of each breach -Period of limitation did not commence at the termination ofthe contract period or the date of final payment - Suit wasfiled after the limitation period of three years for even thefinal breach - Respondent made claim for compensationon every occasion - Appellant granted the extensions butrejected the claims, thus, the cause of action for making theclaim for damages undoubtedly arose on each of thoseoccasions - Fresh contract would be deemed to have beenentered into between the parties on the grant of each of theextensions - Respondent should have initiated legal actionon each of these occasions - Having not done so, itabandoned the claim - The suit is for damages for additionalcosts incurred, not on account of a debt or of interest onlegacy, and thus s. 19 would not per se extend the period oflimitation - There could be no extension uls. 18 on accountof the acknowledgement in writing as each claim wasspecifically refuted by the Appellant- Notice perforce shouldhave been issued before the suit became time barred, andonly if so done would the period have been extended for afurther two months under s. 80 CPC - Thus, respondent failedto file the suit for damages within the period prescribed and the suit is dismissed |
Judge | Hon'ble Mr. Justice Vikramajit Sen |
Neutral Citation | 2015 INSC 788 |
Petitioner | State Of Gujarat |
Respondent | M/s Kothari And Associates |
SCR | [2015] 10 S.C.R. 133 |
Judgement Date | 2015-10-16 |
Case Number | 1770 |
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