AI Overview...
Limitation for Government to Recover Excess Amount Paid to Contractor
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Notice and Cause of Action - The right to recover excess payments arises from the date of the notice demanding repayment, and the cause of action accrues at that point. If the government or relevant authority issues a notice demanding repayment, the limitation period begins from that date, regardless of whether the amount is paid or not. Steel Authority Of India LTD. VS J. C. Budharaja, Government And Mining Contractor - Supreme Court
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Limitation Periods Vary by Claim Type:
- Claims based on final bills or contractual decisions are subject to limitation starting from the government’s decision or intimation to the contractor. For instance, claims in final bills are barred if not filed within the prescribed limitation period from the date of government’s decision. M. L. DALMIYA VS UNION OF INDIA - Calcutta
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Claims for recovery of excess payments or statutory contributions (e.g., ESI, sales tax) have specific limitation periods, often around five years, starting from the date the claim was made or the date of the relevant legal or contractual decision. Anglo French Textiles, a Unit of Pondicherry Textiles Corporation VS Presiding Officer, Employees State Insurance Court cum II Additional District Court, Pondicherry - Madras, BRITANIA BUILDINGS AND IRON CO. LTD. VS STATE OF ORISSA - Orissa, ROSHAN LAL VOHRA & SONS VS EAST MUNICIPAL CORPORATION OF DELHI - Delhi
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Legal Principles on Limitation:
- The law generally does not bar claims for recovery if the government’s notice demanding repayment is issued within the limitation period. Once the notice is issued, the limitation clock begins, and failure to act within this period can bar recovery. However, if the government or contractor acts outside this window, the claim may become barred. Steel Authority Of India LTD. VS J. C. Budharaja, Government And Mining Contractor - Supreme Court, Anglo French Textiles, a Unit of Pondicherry Textiles Corporation VS Presiding Officer, Employees State Insurance Court cum II Additional District Court, Pondicherry - Madras
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For claims based on mistaken payments or taxes paid under law, limitation periods are often three to five years from the date of knowledge or the relevant legal declaration. Mahabir Kishore VS State Of M. P. - Supreme Court, M. E. S. Builders Association of India, Shillong Branch VS Union of India - Gauhati
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Statutory and Contractual Restrictions:
- Some claims, especially those involving statutory contributions or taxes, are governed by specific statutory limitation periods, and claims made beyond these are generally barred unless law provides otherwise. Anglo French Textiles, a Unit of Pondicherry Textiles Corporation VS Presiding Officer, Employees State Insurance Court cum II Additional District Court, Pondicherry - Madras, BRITANIA BUILDINGS AND IRON CO. LTD. VS STATE OF ORISSA - Orissa
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The contractual clauses and standard conditions (e.g., Indian Railway Standard Conditions) may specify limitation periods for recovery, but these are subject to overarching legal principles. Ms. Concrete Products and Construction Company and Another VS Union of India and Others - Madras
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Judicial View:
- Courts have emphasized that the right to recover excess payments or statutory dues is subject to limitation, and claims beyond the prescribed period are typically barred unless there are exceptional circumstances. M. E. S. Builders Association of India, Shillong Branch VS Union of India - Gauhati, AMBIKA TOBACCO COMPANY, GONDIA VS LABOUR COURT, NAGPUR - Bombay
Analysis and Conclusion
The government’s ability to recover excess amounts paid to contractors is primarily constrained by limitation periods that commence from the date of the demand notice or government’s decision. The key points are: - Recovery rights arise upon issuance of a notice demanding repayment. - Limitation periods vary depending on the type of claim but generally range from three to five years. - Claims beyond the limitation period are usually barred, unless law or contractual provisions specify otherwise. - Proper legal procedures and timely notices are crucial to preserve the government’s right to recover excess payments.
References:
- Steel Authority Of India LTD. VS J. C. Budharaja, Government And Mining Contractor - Supreme Court, M. L. DALMIYA VS UNION OF INDIA - Calcutta, Ms. Concrete Products and Construction Company and Another VS Union of India and Others - Madras, Anglo French Textiles, a Unit of Pondicherry Textiles Corporation VS Presiding Officer, Employees State Insurance Court cum II Additional District Court, Pondicherry - Madras, ROSHAN LAL VOHRA & SONS VS EAST MUNICIPAL CORPORATION OF DELHI - Delhi, BRITANIA BUILDINGS AND IRON CO. LTD. VS STATE OF ORISSA - Orissa, M. E. S. Builders Association of India, Shillong Branch VS Union of India - Gauhati, Mahabir Kishore VS State Of M. P. - Supreme Court, AMBIKA TOBACCO COMPANY, GONDIA VS LABOUR COURT, NAGPUR - Bombay
Search Results for "Limitation for Government to Recover Excess Amount Paid to Contractor"
1999 8 Supreme 319 • India - Supreme Court
D.P.WADHWA, M.B.SHAH
gave a notice demanding the amount and there was no response from the appellant and the amount was not paid. ... Supplementary agreement nowhere provides that so-called right of the contractor to recover damages was in any manner saved. ... The cause of action for recovery of the said amount arose from the date of the notice. ... a notice demanding the amount....
1961 0 Supreme(Cal) 52 • India - Calcutta
P.C.MALLICK
The Government contended that some of the claims were barred by limitation. ... Fact of the Case: The contractor, M. L. ... Claims in Final Bill: - Limitation begins from the date of intimation to the contractor of the Government's decision on the final ... The Government is given the right under the contract to recover this amount from any #HL_START....
2001 0 Supreme(Mad) 1254 • India - Madras
P.D.DINAKARAN
The respondent Railway administration proposed to recover the alleged excess payment from the petitioners, leading to the withholding ... Recovery of Excess Payment - Non-Statutory Contract - Indian Railway Standard Conditions of Contract - Violation of Principles ... of a substantial amount from the petitioners' supply bills. ... State of Kerala, reported in 1999 (2) KLJ 678; ... (e) the power to #HL_STA....
2018 0 Supreme(Mad) 4519 • India - Madras
S.RAMATHILAGAM
the 2nd respondent Corporation to claim contribution and recover from any employer who grossly violated the payment towards ESI contribution ... the alleged date of contribution due also cannot acceptable since it is settled position of law that there is no limitation for ... The next contention that the claim is barred by limitation since admittedly, the claim was made beyond the period of five years from ... to the workers, then the #HL_S....
2016 0 Supreme(Del) 1543 • India - Delhi
RAJIV SAHAI ENDLAW
amount claimed by it to have been received by the petitioners in excess than due under the contract - Maintainability of a writ petition ... Writ - Money - Recovery - Writ - Maintainability of - Entitlement of the EDMC as State to determine the ... - Enforcement of a money claim under a contract - Direction sought for recovery of money claims from dues under other contracts ... shall be liable to refund the amoun....
1961 0 Supreme(Ori) 2 • India - Orissa
R.K.DASH, G.C.DAS
The plaintiff company paid sales tax and sought to recover the same from the State Government. ... CONTRACT - GOVERNMENT - LIABILITY - SALES TAX - SUPERINTENDING ENGINEER - AUTHORITY - RATIFICATION - LIMITATION. ... Whether the State Government had ratified the contracts and was therefore liable to pay back the sales tax paid by the plaintiff ... amount#HL_END....
2009 0 Supreme(Gau) 651 • India - Gauhati
TINLIANTHANG VAIPHEI, B.D.AGARWAL
rate of 12.5% only from taxable turnover of the value of works contract of all petitioners of these 13 (thirteen) writ petitions - Excess ... - Members of this society are undertaking construction works on behalf of Garrison Engineer under Ministry of Defence Government ... A-32 - It is also registered as a dealer with the Sales Tax Authority of the Government as well as under Central Sales Tax Authority ... Then, Rule 42 of the Rules provi....
1989 0 Supreme(SC) 370 • India - Supreme Court
K.N.SAIKIA, G.L.OZA
113-suit for refund of money paid as tax under mistake-limitation is three years. [Para 29 ... )-tax paid under mistake of law-limitation starts from date of knowledge-judgment declaring such law to be unconstitutional-date ... not take plea of limitation to defeat the same. ... Ultimately on 17-10-1961 Government decided not to recover the extra amount#HL_EN....
1967 0 Supreme(Bom) 152 • India - Bombay
N.L.ABHYANKAR, D.B.PADHYE
claim was for a benefit which was capable of being computed in terms of money, and the labour court had the power to determine the amount ... and the minimum wages fixed by the State Government. ... Whether the claim of the respondents was barred by limitation? 3. ... ten rupees, and the authority may direct payment of such compensation in cases where the excess or the amount due is paid....
2025 Supreme(Online)(Ker) 54975 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
VIJU ABRAHAM, J
receive amount for tender excess and security deposit after completion. ... (Paras 1-6) ... ... (B) Construction contracts - Entitlement to payment - Contractor entitled to ... ... ... Ratio Decidendi: The court found that the petitioner is entitled to payment for completed work, tender excess, and GST refunds ... HLL and CET, Trivandrum and KSRTC had to entrust some other contractor for the construct....
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