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2015 (10) TMI 2806 - SC - Indian LawsClaim of interest for an extended period - repeated and consecutive delays in handing over the site due to which the Respondent could not complete the work within the stipulated time - price escalation clause - the claim of the Respondent stood barred by the principles of prescription as contained in the Limitation Act, 1963 - HELD THAT:- The payment of the Final Bill and Security Deposit could not be construed to accept or acknowledge the damages raised by the Respondent and therefore Section 19 would not per se extend the period of limitation. Furthermore, there could be no extension Under Section 18 on account of the acknowledgement in writing, as at each point that the Respondent raised a claim for damages, it was specifically refuted by the Appellant State, and the amounts that were accepted by the Appellant State were limited to the liabilities within the contract, not fresh liabilities for damages. The Respondent has also argued that since notice Under Section 80 of the Code of Civil Procedure was served to the Appellant State claiming damages on 7.8.1983, a period of two months from the date of the notice would have to be excluded when calculating the period of limitation, as per Section 15(2) of the Limitation Act - It is thus clear that the Respondent failed to file the suit for damages within the period prescribed in the Limitation Act. The suit is required to be dismissed on this ground alone. Appeal allowed - decided in favor of appellant.
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