Judgment:-

S.B. Sinha, J.

1. Leave granted.

2. Whether the period spent on pursuing a writ petition should be excluded for the purpose of computing the period of limitation in filing a suit in terms of Section 14 of the Limitation Act, 1963 is the question involved in this appeal which arises out of a judgment and order dated 3.10.2007 passed by the High Court of Judicature at Patna in First Appeal No. 388 of 1997.

3. The basic fact of the matter is not in dispute. Appellant was a contractor of the State. It entered into a contract for supply of black pipes to the Minor Irrigation Department of the State of Bihar (for short "the Department") at the rate of Rs. 174.95 per meter. The said agreement contained a clause for escalation of price. On the premise that the price of steel had gone up from Rs. 10804 per MT to Rs. 13031 per MT, appellant, by its letter dated 18.06.1992, stated that as per the terms and conditions of the agreement supply would be made only at the escalated rate for which the additional price was calculated at Rs. 24.09 per meter.

4. Orders for seven lakh meters of supply of black pipes were placed on 16.07.1992. The State worked out the escalation and determined the total increase at Rs. 24.09 per meter. On or about 4.11.1992, `the Department, however, fixed the escalated rate of price of steel at Rs. 190.48 instead of Rs. 199.04.

5. On or about 18.03.1993, orders were placed for further supply of 50000 meters.

6. It is also not in dispute that 90% of the payment was to be made at the time of making supply and the rest 10% of the consideration was to be paid within a month thereafter.

7. Appellant, by its letter dated 4.06.1993, stated:

"We find that the escalation granted to us is not correct as it does not take into account the full impact of the price increase. The rates of HR Coils immediately before the increase on 19.05.92 were Rs. 10804/- and after the increase, these went upto Rs. 13031/-per MT. Thus there was an increase of Rs. 2227/- per MT. This, taken together with taxes on purchase of raw material and sale of pipes, gives a total impact of Rs. 2408.72 per MT or Rs. 24.09 per meter of pipe. As against this, we have been given an escalation of Rs. 15.53 per meter only. In support of the price of the HR Coils mentioned by us above, we are enclosing herewith copies of two invoices issued by SAIL. These clearly show that rates as have been mentioned by us above. We invite your attention to our letters dated 09.11.92 and 10.12.92 through which we have brought this mistake to your notice. We regret that despite it, you have not taken any action on the subject. As a result, our funds to the tune of about Rs. 35 lacs are lying unnecessarily blocked. This is causing severe financial problems for us. We, therefore, request you to please settle this matter quickly now, otherwise, we shall claim interest on this amount for the period of delay."

The said letter was not responded to.

8. Appellant filed a writ petition before the Patna High Court on or about 10.01.1994 praying inter alia for the following reliefs:

"(i) Issue rule NISI in the nature of mandamus commanding the respondents to pay the admitted dues which comes to Rs. 39,04,497.84 to the petitioner for the supply made by the petitioner in accordance with the provisions of law and upon return of the rule and after hearing of the parties make the rule absolute;

(ii) Issue rule NISI in the nature of mandamus commanding the respondents to pay interest to the petitioner on the supply made by the petitioner in accordance with the provisions of interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Ordinance, 1992 on account of delay in making payment of the price of the goods by the respondents and upon return of the rule and after hearing of the parties make the rule absolute;

(iii) Issue rule NISI commanding the respondents to perform statutory duty and obey and fulfill the provisions of the Act made by the Parliament and upon