Period of limitation
Rama Devi
(Querist) 10 October 2019
This query is : Resolved
"A" is a Manufacturer has supplied material to his customer on credit basis and lastly supplied the material on 12/06/2015. The said customer has paid an amount of Rs.56,000/- lastly on 05.09.2016 and finally he is owning a debt balance amount of Rs.4,23,100/-. No notice was served as of this day by the Manufacturer to its customer for filing of the suit. Now the Manufacturer wants to file a suit against its customer. If so, the claim of Manufacturer is within the limitation or not?. Plz. suggust me suitably.
Isaac Gabriel
(Expert) 11 October 2019
How long have you in business ? Issue notice and file suit for recovery. Ther you can talk about Limitaion.
PARDEEP KUMAR
(Expert) 11 October 2019
Unless condoned, Period of limitation is 3 years, so its time barred. However issue him a legal notice of demand, citing running business account, see his reply, it might revive your cause of action.
Dr J C Vashista
(Expert) 11 October 2019
1. Whether the customer has admitted balance of amount ? If so, when, how and where?
2. Is there any proof of delivery of goods to the customer such as e-way bill, C certificate, GST, invoice etc.if so, what is the document?
3. During the intervening period what action has been taken by manufacturer to recover his/her amount outstanding?
4. Whether the manufacturer has reconciled his/her accounts with customer, if so when and how?
5. What is your locus standi and concern to the question?
6. It would be better to consult a local prudent lawyer with relevant records for appreciaition of facts, guidance and proceeding.
7. However, if you are located in Delhi/NCR and feel so, may contact me (on appointment) at : Chamber No 647, Lawyer's Chamber Block, Dwarka Courts Complex, Sector 10, Dwarka, New Delhi-110075 Cell # 98912152939 email: majjagdish@yahoo.com or visit: vakil-saab.com
R.K Nanda
(Expert) 11 October 2019
manufacturer case is time barred by limitation but he can send legal notice to claim outstanding amount from customer.
RAVI K GOUD
(Expert) 11 October 2019
1. Just send a reminder letter of request to pay the outstanding, to create further cause of action, if there is no written agreement or contract with limitation clause.
2. Depending on the reply received you choose to send a legal notice and then file a recovery suit.
P. Venu
(Expert) 11 October 2019
There is no provision for condoning the delay in filing the suit. Of course, you can serve the legal notice and also the means available in getting over the constraint in getting over the period of limitation.
Rama Devi
(Querist) 12 October 2019
Thanks for the experts. Secondly, what would i have to do, in case if the customer not turns,after issuing legal notice. Can I have right to file recovery suit, after issuing notice?
P. Venu
(Expert) 12 October 2019
In my understanding, you should find out some means to bring the cause of action within the period of limitation.
RAVI K GOUD
(Expert) 15 October 2019
In my opinion, for normal business transactions where there is no averment in the agreement/contract or no specific provision in the law with respect to limitation, then we can entertain the last transaction/communication between the parties as the cause of action to come within purview of the limitation point. So normal request for the payment of outstanding is suffice before giving the legal notice of demand. Then the suit for recovery can be filed.
All that presumption is available when there is no specific agreement/contract with regards to nature of business and its financials. How ever it is good to suggest that visit the legal practitioner with your file for further action.
All the best.
