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2024 Supreme(Guj) 662

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
DEVAN M. DESAI, J.
Food Corporation Of India – Appellants
Versus
Sadhana Transport Co. & Ors. – Respondents
R/First Appeal No. 1048 of 2003
Decided on : 18-04-2024

Advocates:
Advocate Appeared:
For the Appellant : MS ARCHANA U AMIN

Headnote:

Limitation - Recovery of Damages - Code of Civil Procedure, 1908 - Articles 23, 55, 112, 113 - The court discussed the applicability of Articles 23, 55, 112, and 113 of the Limitation Act, 1963 in the context of a suit for recovery of damages. The court held that the right to sue for damages accrued on the date of the breach of contract, and the suit should have been filed within the prescribed period of limitation from that date. The court rejected the appellant's argument regarding the applicability of Article 112 and upheld the trial court's decision on limitation.

Fact of the Case:

The appellant filed a suit for recovery of damages from the respondent for breach of contract. The trial court held that the suit was time-barred based on the application of the Limitation Act, 1963.

Finding of the Court:

The court found that the right to sue for damages accrued on the date of the breach of contract, and the suit should have been filed within the prescribed period of limitation from that date. The court rejected the appellant's argument regarding the applicability of Article 112 and upheld the trial court's decision on limitation.

Issues: The main issue was whether the suit for recovery of damages was time-barred under the Limitation Act, 1963.

Ratio Decidendi: The court held that the right to sue for damages accrued on the date of the breach of contract, and the suit should have been filed within the prescribed period of limitation from that date. The court rejected the appellant's argument regarding the applicability of Article 112 and upheld the trial court's decision on limitation.

Final Decision: The appeal was dismissed as meritless, and the court upheld the trial court's decision on limitation. No order as to costs was made, and the record and proceedings were to be sent back to the court below.

JUDGMENT :

1. Heard learned advocate Ms. Archana Amin for the appellant. Though served, none appeared for the respondent/s. Perused the record.

2. This appeal is filed under Section 96 of the Code of Civil Procedure, 1908 (for short, hereinafter referred to as `the Code’), whereby, a challenge is made against the judgment and order dated 30.3.2002 passed by the learned Civil Judge (Senior Division), Nadiad in Special Civil Suit No.59 of 1996.

3. The facts in brief are as under:

    * The appellant – original plaintiff filed a Special Civil Suit No.59 of 1996 before the learned Senior Civil Judge, Nadiad for recovery of Rs.15,54,588-84 Paisa towards damages from the respondent – original defendant. The defendant no.1 was a successful bidder and a contract was entered into for transfer of food products and fertilizers from Nadiad Railway Station to Hatani and Sundhana. A security deposit of Rs.60,000/- was deposited with the plaintiff. The period of contract was for 2 years commencing from 18.6.1985 to 17.6.1987. The period of contract was extended upto 11.8.1987. The defendant started transporting from 18.6.1985 but thereafter, the defendants failed to perform their part of contract. Resultantly, the plaintiff had incurred losses by way of demurrages, wharfage, re-booking charges etc. The liability of the defendant as per the terms of the tender agreement was fixed by the competent authority of the plaintiffs on 8.4.1993.

* A letter dated 17.7.1993 was issued to the defendants calling upon the defendants to pay the amount of damages of Rs.15,54,588-84 Paisa. Defendants appeared and filed Written Statement at Exh.21. The learned trial Court framed issues vide Exh.28. The defendants resisted the suit on the ground of limitation. It was the case of the defendants that the suit of the plaintiffs is time barred. It is also the case of the defendants that the claim of Rs.15,54,588-84 Paisa towards damages etc. is unreasonable and unjustified. It was the case made out by the defendants that the contract was not terminated by the plaintiffs and the account was not settled though huge amount is due and payable by the plaintiffs to the defendants under the contract.

* A counter claim was also raised by the defendants alongwith Written Statement Exh.21. The counter claim was replied to, by the plaintiffs vide Exh.26. Plaintiff had examined Ashokbhai Ramchandra Karnik at Exh.34 and also examined three witnesses namely; Aasardas Trikamdas Golani, Girishbhai Shantighar Bhatt and Sanjay Kuldev Prasad vide Exhs.60, 66 and 85 respectively. The plaintiff also produced various documentary evidence. Defendant examined Vijaybhai Natvarlal Dantani at Exh.95 and a witness Krishnakumar Anant Wade at Exh.123. Defendant also produced various documents in support of their contention.

4. Learned advocate for the appellant submitted that out of all the issues, only issue no.8 which pertains to the limitation was held against plaintiffs. However, other issues were decided in favour of the plaintiffs. It is submitted that the learned trial Court has committed an error by relying upon Articles 23 and 55 of the Limitation Act, 1963 (for short, hereinafter referred to as `the Act’). Learned advocate for the appellant submitted that Articles 23 and 55 of the Act are not applicable in the present set of facts. Article 112 of the Act is applicable.

5. Learned advocate for the appellant has referred and relied upon Article 112 of the Act which is reproduced hereunder for the sake of convenience.

Description of Suit

Period of Limitation

Time from which period begins to run

112. Any suit (except a suit before the Supreme Court in the exercise of its original jurisdiction) by or on behalf of the Central Government or any State Government, including the Government of the State of Jammu and Kashmir.

Thirty years.

When the period of limitation would begin to run under this Act against a like suit by a private person.

6. Learned advocate for the appell

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