- (1.) THIS is an appeal by the State of Rajasthan against the judgment and decree dated 31st March 1967, of the District Judge Kota by which plaintiff's suit was decreed for a sum of Rs. 10940/ -.
(2.) THE only point which has been canvassed on behalf of the appellant is that the suit of the plaintiff was barred by limitation. Learned Deputy Government advocate contends that the suit is governed by Article 18 of the Limitation Act of 1963 and having been filed after the expiry of three years from the date of the completion of the work was beyond time.
(3.) PLAINTIFF respondent was given a contract for terrazzo and cement flooring in the maharao Bhim Singh Hospital Kota on 25th February. 1957, and for the construction of a road inside the same hospital on 30th March, 1957 at an estimated cost of Rs. 96,119 and Rs. 15,238/- respectively. In terms of the agreement, the plaintiff was required to deposit security and if it was not deposited in advance, it was provided that 10 per cent, shall be deducted from his bills. Clause 1 (b) of the agreement provides that : the persons whose tender may be accepted that is the contractor shall permit Government at the time of making any payment to him for work done under the contracts to deduct such sum as will (with the earnest money deposited by him) amount to per cent of all money so payable, such deductions to be held by Government by way of security deposit. Plaintiff's case is that he completed the work to the entire satisfaction of the engineer in-charge on 27th January, 1958. The State deducted the amount equal to 10 per cent, on his running bills as his security deposit for due performance of the contract to the extent of Rs. 10,580/ -. In spite of repeated demands, this amount for security deposit was not refunded to the plaintiff. " The plaintiff served a notice under Sec. 80 Civil Procedure Code on 14th November, 1963, but still the amount was not paid. So he had to institute the present suit for the refund of Rs. 10580/- plus Rs. 3636/-as interest on the said amount at the rate of 6 per cent, per annum.;