On what date the payment was made because the limitation for filling the suit for recovery of the amount is three years from the date of the contract. It can further be from the date of supply of the machine, which ever is later. The limitation can also start afresh if any part payment is made. Then three years period is to be constructed from the last payment. In your case it appears that no payment has been made. So please file the recovery suit immediately if it is within time. If the guarantee period have expired the hospital can not claim the replacement of the machine.
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