Refund of contractual security deposit follows residuary limitation, with time running from contract completion.

A claim for refund of a contractual security deposit retained by deduction from running bills is not governed by Article 18 or by Articles 22, 24 or 55 of the Limitation Act, 1963. The Court treated the retained sum as a refundable security deposit rather than a mere price payment, and reasoned that the claim is not based on breach of a promise to repay but on the refundable character of the deposit after completion of the contract. In the absence of a specific article, Article 113 applied, and limitation began to run from the date of completion of the contract. The suit was therefore within time.

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Issues: Whether a suit for refund of security deposit deducted from running bills after completion of the contract is governed by any specific article of limitation, or by the residuary article.

Analysis: The amount retained by the Government by deduction from running bills was held to assume the character of a security deposit and not merely a price payment. The Court rejected the applicability of Article 18 of the Limitation Act, 1963, and also found that Articles 22, 24 and 55 of that Act did not fit the nature of the claim. It further held that the corresponding provisions of the Limitation Act, 1908 relied on by prior decisions did not alter the position, because a suit for refund of a security deposit is not founded on breach of a promise to repay, but on the refundable nature of the deposit itself after completion of the contract. In the absence of a specific article, the residuary Article 113 of the Limitation Act, 1963 applied, and time began to run from the date of completion of the contract.

Conclusion: The suit was within time under the residuary limitation provision and was not barred.

Final Conclusion: The appeal failed because the claim for refund of the security deposit was governed by the residuary limitation article and the suit was instituted in time.

Ratio Decidendi: A claim for refund of a contractual security deposit, including one retained by deduction from running bills, is governed by the residuary limitation article where no specific article applies, and limitation runs from completion of the contract.

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