Article 1, 14 & 3 of limiation act
AAK
(Querist) 19 December 2011
This query is : Resolved
Dear Experts,
Need your help
My client is running a small ad-agency. It is transacting with one newspaper publication from several year (since 2001) in respect advertisement. Ad-ageny use to place the ad of its customer to the newspaper on commission basis. The newspaper publication has created an account in the name of ad-agency. The ad-agency has placed ads on credit basis. There is no written agreement between ad-agency and newpaper publication. Once in a while ad-agency use to make part payments and the remaining balance will be carried forward & continued in the ledger accounts of newspaper publication. There is continuous transaction with the said news paper agency till 27-03-2009. The last order placed by Ad-agency was on 27-03-2009. Total outstanding balance as on today as per newspapers ledger account is Rs.250000/-.
My question is
whether I can claim that the transactions from 2009 onwards are only within time and other transactions are barred by time ? (Article 14 of Limitation Act)
Do ad-agency need to pay whole amount as it is hit by Article 1 of limitation act? (can the said transaction be called mutual open, running account ?)
OR
Its Article 3 & 4 of limitation ? ( Principal – agent relation? )
I am totally confused???
Dear Experts pls guide me. (If possible with citation)
Raj Kumar Makkad
(Expert) 19 December 2011
The aforesaid transaction/outstanding amount pertaining to 27.03.2009 is within limitation for the purpose of recovery under Article 14 of Limitation Act.
Ad agency is duly liable to pay the entire amount as it was confirmed on last transaction and limitation starts from the day of confirmation till next 3 years.
AAK
(Querist) 20 December 2011
But Mr.Makkad, Article 14 states that The time from which period begins to runs is from the date of the delivery of the goods. So if we count the date from the date of delivery (i.e.in my case its date of publication), many of the transactions are barred by time.
