Case Note & Summary
The plaintiff, Hetal Enterprises, filed a summary suit against the defendant, New India Assurance Co. Ltd., for recovery of the price of stationery goods supplied between 16.12.2005 and 19.12.2005. The goods were delivered with due acknowledgment, and the agreement provided a grace period of 7 days, after which interest at 19.5% per annum was payable. The defendant did not dispute receipt of goods or quality but raised a limitation objection, arguing that the suit filed on 5.01.2009 was barred as the first delivery was on 16.12.2005. The court held that the limitation period of three years under Article 15 of the Limitation Act commenced after the 7-day grace period, i.e., from 23.12.2005, and expired during the Christmas vacation (up to 31.12.2008). Since the suit was filed on the reopening day (5.01.2009), it was within limitation. The court also noted that the defendant's acknowledgments of liability under Article 18 of the Limitation Act were sufficient to save limitation. The court allowed the summons for judgment, decreeing the principal amount of Rs. 1,00,000 with interest at 19.5% per annum from the date of delivery after the grace period until payment, along with costs.
Headnote
A) Limitation Act, 1963 - Article 15 - Suit for price of goods sold and delivered - Commencement of limitation after expiry of grace period - Where limitation expires during court vacation, suit filed on reopening day is within limitation (Paras 5-6). B) Limitation Act, 1963 - Article 18 - Acknowledgment of liability - Acknowledgment need not be accompanied by promise to pay; it is sufficient to save limitation (Para 4). C) Evidence Act, 1872 - Sections 35 and 39 - Maintainability of summary suit - Suit based on acknowledgments and receipts is maintainable (Para 4). D) Contract - Interest - Contractual rate of 19.5% per annum - Plaintiff entitled to interest at contractual rate from date of delivery after grace period (Para 7).
Issue of Consideration
Whether the summary suit is barred by limitation and whether the plaintiff is entitled to interest at 19.5% per annum.
Final Decision
Summons for Judgment is made absolute. The defendant is directed to pay the plaintiff the principal amount of Rs. 1,00,000 with interest at 19.5% per annum from the date of delivery after the grace period of 7 days until payment, along with costs.
Law Points
- Summary suit maintainable based on acknowledgment of liability
- Limitation period extended due to court vacation
- Interest at contractual rate allowed
