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2015 Supreme(SC) 961

VIKRAMAJIT SEN, SHIVA KIRTI SINGH
STATE OF GUJARAT – Appellant
Versus
KOTHARI AND ASSOCIATES – Respondent


Judgement Key Points

The legal document emphasizes that the court must independently verify that a suit is not barred by limitation, regardless of whether the limitation defense has been raised by the parties (!) (!) . It clarifies that the limitation period is to be computed based on the date of each distinct breach, especially in cases involving successive or multiple breaches, rather than relying solely on the date of the final breach or last payment (!) (!) .

The document states that each delay or failure to perform constituting a breach gives rise to a separate and complete cause of action, which must be filed within a specified period from the date the breach occurs. If a suit is filed after this period, it is barred by limitation, even if the breach occurred earlier (!) (!) .

Furthermore, it discusses that extensions granted during the performance of a contract do not necessarily imply that claims for damages are waived or abandoned. The cause of action for damages arises at each breach, and the failure to initiate legal proceedings promptly can lead to presumption of abandonment of those claims (!) (!) .

The document also emphasizes that the effect of a notice under certain procedural provisions does not extend the limitation period for claims unrelated to debt or interest, such as damages for additional costs caused by delays (!) (!) .

Finally, it concludes that a suit filed after the expiry of the limitation period is liable to be dismissed, regardless of whether the limitation has been specifically raised as a defense. The court has a duty to ensure that the suit is within the prescribed time frame, and failure to do so results in dismissal of the claim (!) (!) (!) .


JUDGMENT :

VIKRAMAJIT SEN, J.

1. This Appeal lays siege to the decision of the Division Bench of the High Court of Gujarat at Ahmedabad which dismissed the appeal of the Appellant before us while allowing the cross-objection filed by the Plaintiff/Respondent by holding it to be entitled to claim interest for an extended period. For the reasons which will follow, we have set aside these concurrent findings against the Appellant State, principally on the ground that the claim of the Respondent stood barred by the principles of prescription as contained in the Limitation Act, 1963.

2. The Appellant State invited tenders for providing lining to the main canal line. The Respondent, a registered partnership, submitted a tender that was accepted by the Appellant State. Thereafter a regular agreement was entered into according to which the Respondent would have from 15th November to 14th June as its working period. Under the Work-Order dated 24.9.1976, the Respondent was required to complete the work within 18 months, i.e. on or before 23.3.1978. The case of the Respondent, which w













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