Limitation act section 18 - conditional payment
Aditya Dev
(Querist) 30 June 2017
This query is : Resolved
I am a contractor employed by my employer. I sub-contract the work to a third party. Now the work is completed and we have to pay them. The work was completed on 2014 - December. Now the sub-contractor is demanding payment as the limitation is almost at its end. So I (Contractor) release part of the total amount and send a letter tot he subcontractor which says that we will pay the rest of the amount when the employer pays to us. Therefore our making payment to subcontractor is conditional upon we getting paid by the employer.
What i want is the opinion on:
1 - Whether can we be covered under section 18 of the Limitaion Act?
2 - Is there any way to get out of the scope of this provision?
3- Is there any judgement which accepts such condition?
because there are judgements where the courts have accepted the conditions but then the conditions are related to arbitration or when one party wants to check the accounts. I found no judgement which allows the release of payment from the employer as a condition.
Any and all replies would be appreciated.
Thank you.
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Advocate Bhartesh goyal
(Expert) 30 June 2017
18. Effect of acknowledgement in writing.-
(1) Where, before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgement of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he derives his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgement was so signed.
[1]yes as per sec 18 of limitation Act,making part payment and acknowledgment of balance payment in writing within limitation extends the limitation.
[2]NO
[3]search judgments on google
Rajendra K Goyal
(Expert) 30 June 2017
Agree with the expert Advocate Bhartesh goyal.
Kumar Doab
(Expert) 30 June 2017
Agreed with Mr. Bhartesh goyal.
Kumar Doab
(Expert) 01 July 2017
Consider it for a moment; If you want to pay the vendors for the job work that they have completed, You can pay anytime.
Limitation shall not trouble the payment.
