Case Note & Summary
The dispute arose from a construction contract between the appellants and the State of Goa for building a school auditorium. The appellants filed a suit for recovery of a balance amount due after partial payment, which was dismissed by the District Judge on grounds of limitation and non-compliance with Section 80 of the Civil Procedure Code. The High Court upheld the dismissal regarding limitation but found that notice was served. The appellants contended that the notice was given within the limitation period, and thus, the time for filing the suit should exclude the notice period as per Section 15(2) of the Limitation Act, 1963. The court analyzed the provisions of the Limitation Act and concluded that the High Court's interpretation was incorrect. It held that the notice period must be excluded from the limitation calculation, allowing the suit to proceed. The Supreme Court set aside the High Court's order, confirming that the suit was within the limitation period and directed the trial court to hear the case on merits without commenting on the substantive issues.
Headnote
A) Limitation Law - Computation of Limitation Period - Exclusion of Notice Period - Limitation Act, 1963, Section 15(2) - The court held that the notice under Section 80 was given within the limitation period, and thus, the period for filing the suit should exclude the notice period. The High Court's interpretation that the suit was barred by limitation was erroneous as it did not account for the exclusion mandated by Section 15(2) of the Act (Paras 12-16).
Issue of Consideration
Whether the suit was barred by limitation and if the notice under Section 80 of the Civil Procedure Code was properly served.
Final Decision
The Supreme Court set aside the High Court's order, holding that the suit was within the limitation period due to the exclusion of the notice period under Section 15(2) of the Limitation Act, 1963. The court directed that the suit be heard on merits by the trial court.
Law Points
- Limitation period
- Exclusion of time
- Notice under Section 80
- Civil Procedure Code
- 1908
- Interpretation of statutory provisions
