recovery of money suit
lalitkumar bhandari
(Querist) 28 September 2010
This query is : Resolved
we are dealer of the one company and becuase of the mistake of accountant of dealer there was payment of Rs.12 lakhs done to the compnay without purchase of goods from said company this happens in 1999. the dealer got the knowledge of said mistake in the year 2001 and he send letters to the compnay to rectify the mistake at that time the company agreed to rectify the mistake orally and promised to dealer they will supplying the goods instead of repayment.the dealer was also agreed fot the same but company not supplied the goods not repaid the amount.after that the dealer send various letters and reminders to the company to settle the issue but compnay has given oral promise to settle the issue nad prolonged the issue till June 2010 and now company informed to dealer that you have right to take the legal action against us you period of claiming the money is lapsed.can i file ths recovery of money suit against the compnay?can this suit will barred by limitaion?if yes what is other remedies?can i apply the provision of section 17 &18 of limitation Act. Act?
R.Ramachandran
(Expert) 28 September 2010
Dear Lalitkumar,
The limitation for suit for recovery of money is only 3 years.
You say that the mistake took place in 1999 and it was detected in the year 2001. The limitation period under sec. 17 would start running from 2001, and three year period had lapsed in 2004 itself.
Since there is no written acknowledgement from the other party admitting its liability, where is the question of invoking the provisios of Section 18 of the Limitation Act?
Y V Vishweshwar Rao
(Expert) 28 September 2010
Is it a continuing/ Running Account between the Parties - Company and dealer - final accounts to be made and settled
s.subramanian
(Expert) 28 September 2010
I agree with Mr.Y.V.Rao. But for that the transactions between yourself and that compnay should have continued all these years. If yes,file a suit on accounts for which your claim will be within time.
Chanchal Nag Chowdhury
(Expert) 28 September 2010
The suggestion given by Mr. Rao is your only hope. It is advised U consult a good local lawyer with your correspondence.There lies the key.U may also try to plead quasi-trust.
