A counter claim must be filed within the limitation period applicable to plaints, and failure to do so results in rejection of the claim.

Judgment :

NINALA JAYASURYA, J.

The present appeal has been preferred against the orders of the learned Principal District Judge, Vizianagaram dated 19.04.2018 whereby the counter claim of the appellant / defendant filed in C.O.S.No.2 of 2017 was rejected.

2. For the sake of convenience, the parties herein are referred to as the claimant and the respondent.

3. The brief facts leading to the filing of the appeal may be stated thus:

4. The respondent herein, a Doctor, is the absolute owner of property bearing No.D.No.15-12-16 (A), Near Three Lamps junction, Vizianagaram. He along with his wife Dr.Padma Kumari are running a hospital with Pediatric and Gynecology streams and have good reputation in Vizianagaram, Visakhapatnam, Srikakulam and some parts of Orissa. The claimant, a Private Limited Company dealing with the administration, development of hospitals etc., offered to take the premises of the respondent on lease, inter alia for the purpose of making it as a multi specialty hospital. The respondent and the claimant accordingly entered into various agreements and deeds including Deed of Lease dated 01.04.2010, Professional Service Agreement dated 01.04.2010, Lease Agreement dated 01.04.2011, Lab and Service Agreements etc., acted upon as per the terms contained therein. However, the respondent raising certain disputes, filed A.O.P.No.524 of 2013 and A.O.P.No.590 of 2013 before the Court of Principal District Judge, Vizianagaram. During the pendency of the said O.Ps., the claimant approached the respondent to settle the issues agreeing to cancel all the agreements and deeds by paying the amounts payable to the respondent. Accordingly, the parties reduced the terms and conditions of the settlement into writing and in pursuance thereof, the lease was surrendered and the agreements and deeds were cancelled w.e.f., 01.02.2014. However, as the claimant failed to pay the amounts to the respondent in terms of the agreements arrived at, the respondent filed O.S.No.11 of 2016 (renumbered as C.O.S.No.2 of 2017), claiming a sum of Rs.1,16,39,298/- under various heads and Rs.36,48, 893/- towards interest thereon, till the date of filing of the suit. The respondent also claimed an amount of Rs.50,00,000/- towards compensation, damages sustained by him together with interest.

5. The claimant filed a written statement on 25.07.2016 denying the plaint averments and the amounts claimed by the respondent, that the claimant was lured by the respondent to invest monies in the hospital which was being run by the respondent and after making the investments by it, in order to evade the payments lawfully payable, the respondent indulged in litigation and instituted the suit. The claimant while reserving it’s right to make a counter claim inter alia stated that an amount of Rs.1,57,96,795.56 ps., is payable to the claimant by the respondent.

6. After filing of the written statement, on 27.04.2017 the claimant filed the counter claim stating that various agreements were entered into between the parties, including separate professional Service Agreement with the wife of the respondent, dt.01.03.2012, that the respondent had enjoyed the benefits and realized huge amounts from the claimant, that the respondent was not prompt in settlement of the amounts payable to the claimant and that differences arose between them. In the cause of action para, it referred to Minutes of Understanding on 24.01.2014 and stated that it was necked out from the Hospital and that the respondent had retained the entire machinery and equipment installed by the claimant in the hospital and is utilizing the same, making money out of it etc., that it is entitled for the written down value on the fixed assets which comes to Rs.65,02,209/- as also interest of Rs.28,21,785.6 ps., thereon. Apart from the same, it claimed an amount of Rs.12,75,000/-, Rs.1,94,980/-, Rs.6,63,420/-, 79,94,793/- towards hospital deposit, electricity deposit, primary stock and excess variable professional fee pai