Advocates:
Advocate Appeared:
For the Appellant :Mr. N.K. Manchanda, Advocate
For the Respondent:Mr. Ranjit Singh Kalra, Advocate

Based on the provided legal document, the key points relevant to the issue of limitation in the recovery suit are as follows:

1. The limitation period for initiating a suit for recovery is counted from the date when the extent of the loss is determined through an inquiry, not from the issuance of the charge-sheet or initial complaint (!) .

2. In this case, although the charge-sheet was issued in December 2017, the quantification of losses was finalized only after an inquiry and an order dated 02.09.2020. Therefore, the limitation period begins from this date, not from the charge-sheet issuance (!) .

3. The suit was filed within the limitation period, as it was initiated on 31.08.2023, which is within five years from the date of the final order determining the loss (!) .

4. When considering application under Order 7 Rule 11 CPC for rejection of the plaint on the ground of limitation, only the averments made in the plaint are relevant. The court does not examine evidence or merits at this stage; it only assesses whether the plaint itself discloses that the suit is barred by law (!) (!) .

5. The court emphasized that limitation is a mixed question of law and fact, but at the stage of rejection under Order 7 Rule 11, the focus remains solely on the statements in the plaint, without delving into evidence or defence (!) .

6. The court dismissed the petition challenging the maintainability of the suit on the ground of limitation, holding that the suit was filed within the permissible period from the date of the final order quantifying the loss (!) .

In summary, the court clarified that the limitation clock begins from the date when the loss is finally quantified, and only the allegations in the plaint are relevant for determining whether the suit is barred by limitation at this stage.

JUDGMENT :

Nidhi Gupta, J.

Present petition has been filed by the defendant against the order dated 24.03.2025 (Annexure P4) whereby application (Annexure P1) filed by the petitioner under Order 7 Rule 11 CPC for rejection of plaint, has been dismissed by the learned trial Court.

2. Learned counsel for the petitioner submits that the respondent/plaintiff Corporation had filed a suit against the petitioner for recovery of Rs.3,34,576/- based on alleged losses caused to the plaintiff during wheat procurement in the crop year 2017-18. It is submitted that for the said alleged losses, charge-sheet was issued to the petitioner in December, 2017; however, the suit for recovery was filed almost six years thereafter on 31.08.2023. It is contended that accordingly, suit of the plaintiff was barred by limitation; and therefore, deserved to be rejected under Order 7 Rule 11(d) CPC on ground of limitati