27 December 2021, Monday

2 years ago

Part-payment of an invoice does not extend the limitation period towards other unpaid invoices if the payments had always been made against specific invoices rather than on a running account basis: Delhi High Court

07 December 2021 | Marsons Electrical Industries v. Fedders Lloyd Corporation Ltd. | OMP (Comm.) No. 2/2020 | Vibhu Bakhru J | Delhi High Court | 2021 SCC OnLine Del 5238

The High Court of Delhi has ruled, considering an award that had rejected some claims as time-barred, that where the buyer used to make payments against specific invoices, the period of limitation would not stand extended because of part payment in respect of any other invoice. It also said that the payments could not be considered a running account.

Moreover, it added, the tribunal’s decision on facts was final.

Considering rejection of another claim towards loss of profit, business opportunity, goodwill, etcetera, the court said that the award could not be faulted because there was no material to substantiate the claim. On this point, the court was “of the view that … the award of damages [if had been made] without the claimant establishing the same by cogent evidence would be patently illegal and also fall foul of the Public Policy of India”.

Read the decision here.


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