PARRY AND CO LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT Vs. SOUTHERN ROOFINGS PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT

JUDGEMENT

(1.) PLAINTIFF is the appellant herein. The averments in the plaint briefly stated are as follows: The defendant entrusted to the plaintiff, the work of electrical installation in their factory at Mudichur. The plaintiff carried out the electrical installation and in respect of the said work of supplying materials, installing and commissioning 250 K.V.A. Transformer Sub-station complete with medium pressure installation, a sum of Rs.44,118.45 had become due from the defendant. The transformer was energised in 1974 and the factory of the defendant started production. The entire amount due to the plaintiff was however not paid inspite of repeated demands. A statement of account as on 30.6.1975 was sent to the defendant after adjusting the credits and it was found, that a sum of Rs.38,907.55 was due by the defendant. The defendant acknowledged their liability and undertook to pay the amount in instalments on account of the financial difficulty faced by them. No payment was however made by the defendant. A notice calling upon the defendant to pay the entire arrears at Rs.38,907.55 with interest at 12% p.a. was sent to the defendant. The defendant is liable to pay interest at 13% per annum from 23.2.1977, the date on which the liability was acknowledged. A total sum of Rs.45,910.81 is due by the defendant.

(2.) THE defendant in his written statement stated as follows: THE claim with regard to the first 3 items are barred by limitation. THE plaintiff has not set out correctly the amount due by the defendant. THE letter dated 23.2.1977 does not amount to an acknowledgement of liability. THE first two items have become barred by limitation even prior to 23.2.1977. THE defendant is not liable to pay interest as there was no stipulation for the payment of interest.

(3.) THE learned counsel appearing for the appellant/ plaintiff has argued that this appeal is only against the decree granting amount of Rs.15,394.45 which was not the entire amount prayed for. THEre was no decree passed by the learned Judge on the ground of limitation and it is erroneous in view of Sec.25 of the Indian Contract Act.