HI Friends,
I would like to have your legal opinion on following :
The Company has entered into a contract wtih the client in year 2007. The contractual terms got over by March 2009. However, the Project completed by March 2010 by contractor due to some delay in work. The contractual term provides the liquidated damages clauses which is around 1% of the contract. The Contractor has paid by the Client the amount under the contract except 1% of contractual amount of Rs.40.00 crores. So, the amount retained by client is Rs.40.00 lacs. The contractos states that LD(Liquidated damges are not payable as delay not attributable because of contractor and shown/submitted the calculations ot the client accordingly. Contractos has raise the bill of rs.40 lacs in the March 2010 itself and following for payment till date. Now, as regard to client, even client orally states that they are looking into the matter and taken will govt.Company Sr. managenent. But, no rejection nor any communication in this regard by Client till date from the date of raising of an invoice of rs.40.00 lacs. Contractor following continuously but client given false oral iassurancences and nothing in writing.
Now, Contractor wants to send arbitration notice to the client under the contract, but the hitch is of limitation period, my query tomy all fellowlegal fraternity is
a) Considering the project completed by March 2010 & bill raising for remaining balance of Rs.40.00 lacs in April 2010, the limitation starts from the said date. So, whether the claim is TIME-BARRED UNDER LIMITATION ACT as it exceeds 3 years (from invoking contractual provisions)??
b) considering the client has not acceptaed nor refused the liability in writing since 2010( u/s18 of LImitation act), whether limitation period starts from raising of invoice by contractor to the client i.e. in march 2010- and then, is it time-barred?
c) whether condonation of delay can be given, mentioning the reaons that from last 4-5 years even though no acceptance / rejection from client in writing, client is looking into the matter, when the COURT will condone the delay for contractual delay under limitation??
Your early reply is appreciated.
Thanks in advance.
Sujit S. Bhalekar
advocate.
