Case Note & Summary
The appellant, Alibag Nagar Parishad (Municipal Council), challenged the judgment and decree of the Civil Judge, Senior Division, Raigad at Alibag in Special Civil Suit No.39 of 1993, which decreed the suit filed by the respondent-contractor for recovery of Rs.4,21,000/- with interest at 15% per annum and costs. The respondent had been awarded a contract by the appellant through tenders and completed the work on 22.5.1990. He claimed a total sum of Rs.8,20,000/- was payable, out of which he had received Rs.5,50,000/-, leaving a balance. The appellant resisted the suit on several grounds, including limitation. The trial court framed Issue No.5 on limitation and decided it against the appellant, awarding the claim. In appeal, the appellant's counsel raised only two submissions: that the suit was barred by limitation under Article 18 of the Limitation Act, 1963, as the work was completed on 22.5.1990 and the suit was filed beyond three years, and that the cause of action arose on the date of completion. The High Court examined Article 18, which prescribes a three-year period for the price of work done by the plaintiff for the defendant at his request, where no time is fixed, and the period begins when the work is done. The court noted that the work was completed on 22.5.1990 and the suit was filed in 1993, which is within three years. The court held that the cause of action arises on the date of completion of work, not on the date of demand or refusal. Therefore, the suit was within limitation. The court found no merit in the appeal and dismissed it with no order as to costs.
Headnote
A) Limitation Act - Article 18 - Price of Work Done - Period of Limitation - The period of three years for filing a suit for the price of work done by the plaintiff for the defendant at his request, where no time is fixed, begins when the work is done. The court held that the cause of action arises on the date of completion of work, not on the date of demand or refusal. (Para 3) B) Limitation Act - Article 18 - Applicability to Contract Work - The suit for recovery of balance payment for construction work completed on 22.5.1990, filed in 1993, is within limitation as the work was completed within three years of filing. The trial court's finding on limitation was upheld. (Para 3)
Issue of Consideration
Whether the suit for recovery of balance payment for work done is barred by limitation under Article 18 of the Limitation Act, 1963, when the work was completed on 22.5.1990 and the suit was filed in 1993.
Final Decision
Appeal dismissed. The trial court's decree is upheld. No order as to costs.
Law Points
- Limitation period for recovery of price of work done runs from completion of work under Article 18 of Limitation Act
- 1963
- not from subsequent demand or refusal
