IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Mini Pushkarna, JJ.
M/s. Cico Technologies Limited Through Its Authorized Representative Mr. Sandeep Chatterjee – Appellant
Versus
Ms Anita Agarwal Proprietor of M/s Shri Mahadev Industries – Respondent
RFA(COMM) 13 of 2023
Decided On : 21-08-2023
Limitation - Civil Procedure - The court allowed the appeal and remanded the matter back to the Trial Court for a fresh consideration on merits, highlighting the importance of considering the Supreme Court order on limitation even if not specifically referred to in the plaint.
Fact of the Case:
The appeal was filed challenging the dismissal of the suit on the ground of limitation. The Appellant-Plaintiff argued that the period of limitation should be calculated excluding the period mentioned in the Supreme Court order on limitation and also considering the non-starter report issued after a pre-institution mediation application.
Finding of the Court:
The Court found that the Trial Court failed to consider the Supreme Court order on limitation, and should have taken judicial notice of the widely circulated order. Consequently, the appeal was allowed and the matter was remanded back to the Trial Court for a fresh consideration on merits.
Issues: The issues revolved around the calculation of limitation period and the Trial Court's failure to consider the Supreme Court order on limitation.
Ratio Decidendi: The Trial Court should have taken judicial notice of the widely circulated Supreme Court order on limitation, even if not specifically referred to in the plaint.
Final Decision: The present appeal was allowed and the matter was remanded back to the Trial Court for a fresh consideration on merits. The Appellant-Plaintiff was entitled to a refund of the Court fees paid for filing the appeal.
JUDGMENT
Manmohan, J. (Oral)
1. Today, learned counsel for the Appellant-Plaintiff has handed over in Court an affidavit of service. In the said affidavit it has been stated that the Respondent has been served with summons by Post, WhatsApp and Email. The said affidavit is taken on record.
2. Consequently, this Court has no other option but to proceed ex-parte against the Respondent-Defendant.
3. It is pertinent to mention that the present appeal has been filed challenging the order dated 19th September, 2021 passed by the learned District Judge in CS (COMM) 378/2021, whereby the suit was dismissed on the ground of limitation.
4. Learned counsel for the Appellant-Plaintiff states that the Appellant- Plaintiff and the Respondent-Defendant were maintaining current, running and non-mutual account and the last transaction between the parties happened on 31st August, 2017 i.e. date of last delivery of products by the Appellant-Plaintiff to the Respondent-Defendant. She states that the period of limitation for filing the suit would start running from 1st January, 2018 and was supposed to end on 1st January, 2021. She, however, states that in view of the order of the Supreme Court in In Re: Cognizance for Extension of Limitation, Suo Moto Writ Petition (C) No. 3 of 2020 the period from 15th March, 2020 till 28th February, 2022 has to be excluded for calculating the limitation. She further states that the Appellant-Plaintiff had moved an application on 6th March, 2021 for pre-institution mediation where the Respondent-Defendant did not appear and the non-starter report dated 13th July, 2021 was issued. According to her, if this period is also excluded then the suit will be within limitation.
5. A perusal of the paper book reveals that the Appellant-Plaintiff had relied upon the Supreme Court order dated 23rd March, 2020 in Suo Moto Writ Petition (C) No. 3 of 2020 in its plaint. However, the said aspect has not been even referred to, leave alone, dealt with by the learned District Judge, Commercial Court, South-East District, Saket Courts, New Delhi in the impugned order.
6. This Court is also of the view that even if the aforesaid Supreme Court order had not been referred to in the plaint, the Trial Court should have taken judicial notice of the same as it is a very widely circulated order.
7. Consequently, the present appeal is allowed and the matter is remanded back to the Trial Court for a fresh consideration on merits. The Appellant-Plaintiff shall be entitled to refund of the Court fees paid for filing the present appeal.
The delay in filing an appeal is not condoned when insufficient diligence is shown, and limitation is calculated based on the last payment, confirming the applicability of Articles 1 and 113 of the L....
The rejection of a plaint on the ground of limitation should be based on the allegations in the plaint and should be decided after trial and not at the threshold.
The requirement to produce documentary evidence to support a claim of acknowledgment of liability under Section 18 of the Limitation Act, 1963, and the Commercial Courts Act, 2015.
Limitation is a mixed question of fact and law, requiring evidence for determination; dismissal under Order VII Rule 11 CPC cannot occur without proper pleadings.
The judgment emphasizes that when computing limitation periods, it is crucial to consider exclusions and extensions as directed by higher courts or specific laws.
(1) Preliminary issue – When issues of both law and facts arise in same suit, Court may dispose suit by trying issue of law first.(2) Money suit – Issue as to whether claim of appellant is barred by ....
Liability can only be acknowledged based on documentary evidence; mere assertions in balance sheets are insufficient to extend the limitation period under the Limitation Act.
The issue of limitation in civil suits is a mixed question of law and fact requiring trial for resolution.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.