Suit is barred by limitation

I has been publishing a weekly newspaper, disclosing modusoperandi adopted by the officials of the BSES (DISCOM) to harass the public at large. More particularly, in the month of January and February 2005, various articles were published by me in respect of theft of electricity being done by certain persons in connivance with the officials of the BSES. The immediately on publication of the news, one official of the BSES contacted me in my office who suggested to settle the matter on the table and proposed to oblige me in terms of various insentivs to be given to me. Simultaniously, threatened me at the same time to face dire consequences in case his proposal is not accepted by me. I intimated the said incidence to the CEO of the BSES by Regd. Post. I was much surprised to receive a letter dated [deleted] from the office of the BSES suggesting me for OUT OF COURT SETTLEMENT. I sent a reply to the BSES asking them to intimate particulars of the dispute/court case for which out of court settlement has been suggested as I had no dispute with the BSES. I also sent a letter to the CEO of the BSES to investigate the matter properly as I was smelling some conspiracy in the matter. On 12 May 2005, I personally visited to the office of the BSES, there I came to know that a case of electricity theft was made against me at House no. 30/32 Delhi, I strongly objected the said fictitous raid and theft bill which was raised in my name. As per their (BSES) record shown to me, the photographs of the raided premises/seized material bears address 30/31 Delhi and the address was malafiedly writtened 30/32 Delhi, which is mine premises. After arguments for the same with the higher officials of the BSES, they regretted to have sent such letter and handed over me a duplicate bill in the name of Rajiv who is the real owner of the raided premises i.e. 30/31 Delhi, stating that my name was inadvertetently mentioned in the letter aforesaid. And the matter came to an end on the same day i.e. 12 May 2005. Surprisingly, after eight years, the officials of the BSES visited my premises on 25 FEB. 2013 and disconnected the supply of electricity in the same matter. Thereafter, I filed a suit for Declaration and Permanent injunction. During the trial of the case (after cross examination of both sides) they (BSES) filed written submissions for arguments.They had given only one submission that, "That the suit of plaintiff is clearly barred by Law of Limitation. The plaintiff was obliged to file the suit with in three years of the raising of the theft bill and the inspection in question" I have only two query in this regard from this reputed forum/group. 1. Cause of action to file the present suit occures on Feb. 2005 or Feb. 2013 (when the supply was disconnected)? In which year cause of action arouse? 2. Plz. suggest me if the suit is barred by limitation. 3. Any specific cietation/case in support the limitation law.