Airen And Associates Vs Sanmar Engineering Services Limited (Supreme Court of India)
The Supreme Court considered whether M/s. Airen and Associates was entitled to the benefit of the extended period of limitation under Section 18 of the Limitation Act, 1963 for its entire suit claim. The appellant had undertaken work for the respondent and claimed to have completed it on 07.02.1991. By notice dated 14.03.1992, it sought recovery of ₹3,07,115.85. In reply dated 21.05.1992, the respondent disputed the claimed amount, stating that the total contract value was ₹1,55,223, that ₹1,00,000 had already been paid after deductions, and acknowledged that only ₹27,874.10 remained payable in full and final settlement, expressing willingness to pay that amount without prejudice.
The appellant subsequently instituted Civil Suit No. 21-B/1995 on 17.04.1995, seeking recovery of ₹3,07,115.85 together with interest at 18% per annum from 01.04.1991, aggregating to ₹5,28,238.89. The District Judge, Durg, by judgment dated 08.12.2003, held that the appellant was entitled to receive the claimed amount with interest but dismissed the suit as barred by limitation.
In First Appeal No. 34/2004, the High Court of Chhattisgarh, by judgment dated 12.06.2012, held that the appellant was entitled to the benefit of Section 18 of the Limitation Act, 1963, but only in respect of the liability acknowledged by the respondent. Consequently, the High Court limited the decree to ₹27,874.10, together with interest at 12% per annum from 01.04.1991 until actual payment.
