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Issues: Whether the claim for price of goods supplied was barred by limitation, and whether a cheque payment subsequently adjusted by the claimant against selected invoices could extend limitation for the remaining invoices.
Analysis: The claim arose from successive invoices carrying a credit period of 45 days, so limitation ran separately from the expiry of credit under each invoice. The claimant itself pleaded and proved that the part payment of Rs. 50 lakhs was appropriated under the rule of appropriation against four identified invoices, three of which were fully adjusted and one partly adjusted. Having elected to apply the payment to those invoices under the law of appropriation, the claimant could not later treat the same payment as a general acknowledgment of liability for all other invoices. Any later email or payment could not revive a claim that had already become time-barred. The limited scope of interference under Section 37 also barred reappreciation of the concurrent findings on limitation.
Conclusion: The claim for the remaining invoices was held to be time-barred, and the award as affirmed by the Single Judge was not interfered with.