Full Judgment Text
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CASE NO.:
Appeal (civil) 1101 of 2002
PETITIONER:
GOVIND PRASAD AGARWAL
RESPONDENT:
STATE OF JHARKHAND & ANR
DATE OF JUDGMENT: 14/02/2008
BENCH:
H.K. SEMA & MARKANDEY KATJU
JUDGMENT:
JUDGMENT
O R D E R
CIVIL APPEAL NO. 1101 OF 2002
This appeal is directed against the judgment and order of the High Court dismissing
the claim of the appellant being barred by limitation.
Briefly stated the facts are as follows.
A contract was entered into between the appellant and the respondent sometimes in
the year 1981. Work order was issued to the appellant on 27/3/1981. The period for
completion of the work was, however, extended upto 30/6/1985. On 10/12/1985, the
appellant made a claim for payment of certain amount. The respondents did not reply to
the claim. Ultimately, on 10/4/1991, the appellant filed an application under Section 20
of the Arbitration Act, 1940. The High Court in these circumstances held that under
Article 137 of the Limitation Act 1963, the period of limitation provided is for three
years from the time when the right to apply accrues and, therefore, the application was
barred by time.
.......2.
- 2 -
In the present case, undisputedly, the right to apply accrued on 10/12/1985. Sectio
n
20 application was filed on 10/4/1991. In our view, therefore, it is clearly barred by the
limitation under Article 137 of the Limitation Act which prescribes for three years.
This apart, the question raised in the present dispute is squarely covered by the
decision of this court rendered in Steel Authority of India Ltd. Vs. J.C. Budharaja,
Government and Mining Contractor, (1999) 8 SCC 122, particularly paragraph 27 of the
judgment.
Learned counsel for the respondent referred to a decision rendered by this Court in
Union of India & Ors. Vs. M/s. L.K. Ahuja & Co., AIR 1988 SC 1172. Learned counsel
for the appellant referred to paragraph 8 of the judgment. The facts of this case is not
applicable in the facts of the present case. In that case, the claim for reference was made
within three years commencing from 16/4/1976 and the application was filed under
Section 20 on 18/12/1976, i.e. within eight months.
In the result, this appeal, being devoid of merit, is, accordingly, dismissed. No c
osts.