Sarvesh Security Services Pvt Ltd vs Centre For Development Of ...
2018 Latest Caselaw 7003 Del

*            IN THE HIGH COURT OF DELHI AT NEW DELHI

+                         RFA No. 462/2017

%                                                27th November, 2018

SARVESH SECURITY SERVICES PVT LTD

                                                         ..... Appellant

                          Through:       Ms. Sheha Singh, Advocate
                                         (Mobile No. 9999151328).

                          versus

CENTRE FOR DEVELOPMENT OF TELEMATICS

                                                       ..... Respondent

                          Through:       Mr. Balaparameshwari          K.,
                                         Advocate     (Mobile          No.
                                         9810818668).

CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

To be referred to the Reporter or not?

VALMIKI J. MEHTA, J (ORAL)

1. This Regular First Appeal under Section 96 of the Code

of Civil Procedure, 1908 (CPC) is filed by the plaintiff in the suit

impugning the Judgment of the trial court dated 16.01.2017 by which

the trial court has rejected the suit plaint as time barred under Order

VII Rule 11 CPC. In fact, when a suit is dismissed as time barred, the

judgment would actually be under Order XII Rule 6 CPC and not

under Order VII Rule 11 CPC vide Prem Lata Nahata and Another v.

Chandi Prasad Sikaria, (2007) 2 SCC 551.

2. The subject suit was filed by the appellant/plaintiff for

recovery of Rs. 28,46,758/- claiming that the appellant/plaintiff

provided security services to the respondent/defendant in terms of the

Agreement dated 01.11.2007, and that payment for the security

services rendered from 01.02.2010 to 18.05.2010 has not been paid,

and hence the subject suit was filed.

3. The trial court has held that since the amount claimed is

for the period from 01.02.2010 to 18.5.2010, the suit could have been

filed at best within three years from 18.05.2010, but the suit filed in

August, 2014 i.e. after a period of three years, and therefore the suit

plaint was rejected as time barred.

4. I do not find any error in the impugned judgment because

the suit was filed on 04.08.2014 and the entitlement to claim security

services charges for 01.02.2010 to 18.05.2010 arose in the month of

March to June, 2010, and therefore suit could have been only filed till

June, 2013, but the suit has been filed much later in August, 2014, and

therefore the suit has been rightly dismissed as time barred.

5. The ld. counsel for the appellant/plaintiff argued by

placing reliance upon the letter dated 19.09.2012 of the

respondent/defendant that the same constitutes an acknowledgment of

debt under Section 18 of the Limitation Act, 1963 and for this purpose

reliance is placed upon the judgment of the Supreme Court in the case

of Food Corporation of India v. Assam State Cooperative Marketing

and Consumer Federation Ltd. and Ors., (2004) 12 SCC 360.

Reliance is also placed upon the judgment of the Supreme Court in the

case of Lakshmirattan Cotton Mills Co. Ltd. and Ors. v. The

Aluminium Corporation of India Ltd., (1971) 1 SCC 67.

6. There is no dispute to the proposition of law as laid down

in the aforesaid two judgments but before an acknowledgment of debt

is an acknowledgment of debt there must be an admission of the

liability, though the acknowledgement may dispute the payment, but

in any case there must be an acknowledgment of a jural relationship of

debtor and creditor. In my opinion, the letter dated 19.09.2012 issued

by the respondent does not in any manner admit any liability towards

the appellant/plaintiff or in the same in no manner admits that the

respondent/defendant is the debtor of the appellant/plaintiff. The letter

dated 19.09.2012 reads as under:-

"19.09.2012 To, M/s Sarvesh Security Services Pvt. Ltd. 419, Pocket E, Mayur Vihar, Phase II, New Delhi-110091

Sub: Regarding non-remittance of EPF and ESI

Sir,

Please refer to our various letters written to you regarding non-payment of PF/ESI to the security staff engaged by you in C-DOT during the contract period from 01.11.2007 to 18.05.2010.

Our CAG Auditors, DOT Performance Auditors and Internal Audit Reports have observed that PF has not been credited to the account though payment has been released by C-DOT fulfilling the responsibility of the principal Employer. However you have not remitted the EPF and ESI contribution though mentioned in the payment sheets. You have left C-DOT rather fled C-DOT with EPF and ESI contribution of more than 30 lacs besides non-payment to labourers.

You are hereby directed to remit the amount to C-DOT within fifteen days of receipt of this letter failing which the matter will be reported to the appropriate authorities for flouting the statutory requirement.

Sd/-

Manager (Admin)"

7. In view of the aforesaid position, in my opinion, suit has

been rightly dismissed as time barred as the suit was not filed within

limitation period of three years and the letter of the

respondent/defendant dated 19.09.2012 does not fall under the

acknowledgment of liability under Section 18 of the Limitation Act.

8. There is no merit in this appeal. Dismissed.

NOVEMBER 27, 2018                           VALMIKI J. MEHTA, J
AK