HC: Document 'created', imposes cost on TN firm

A city-based private firm, involved in sales and servicing of earthmover machines and vehicles, moved the Madras High Court to get it's due' to the tune of Rs 1.28 crore from a client. After finding that a document has been 'created' only for the purpose of bringing the suit within the limitation period, the court dismissed it after slapping a cost of Rs 1.50 lakh on that company. An engineering firm, the plaintiff, represented by its director had filed a civil suit in the High Court to recover 'outstanding amount' from another company, the defendant in this matter. The plaintiff company was for recovery of due together with interest at the rate of 24 percent per annum from 2015. Justice N Anand Venkatesh dismissed the suit recently holding that the suit was 'hopelessly barred by limitation. The judge, after considering the conduct of the plaintiff and the facts and circumstances of the case, also imposed a Rs 1.5 lakh cost on the plaintiff payable to the defendant company.

''On a cumulative reading of the facts and circumstances of the case, this court comes to a conclusion that an exhibit produced by the plaintiff in support of its claim, is inadmissible in evidence and this document has been created only for the purpose of bringing the suit within the limitation period,'' the judge noted.

If that exhibit cannot be considered as evidence, the suit is barred by limitation, since the last sales invoice was dated August 30, 2011, and the suit was filed only on December 1, 2014, beyond the limitation period of three years, the judge said.

''In view of the above discussion, this court holds that the suit filed by the plaintiff is hopelessly barred by limitation,'' the judge said. In view of the fact that the suit is barred by law of limitation, there is no requirement for this court to go into the merits of the case and answer the other issues, the judge added and dismissed the suit with cost. The Limitation Act specifies a time limit to file suits and if a plea was filed after that, it becomes barred by law.

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