// Example sketch showing how to request time from controller.
// Created by Henrik Ekblad <henrik.ekblad@mysensors.org>

#include <SPI.h>
#include <MySensor.h> 
#include <Time.h> 

MySensor gw;
boolean timeReceived = false;
unsigned long lastUpdate=0, lastRequest=0;

void setup() 
{ 
  gw.begin();
  // Send the sketch version information to the gateway and Controller
  gw.sendSketchInfo("Clock", "1.0");
  // Request time from controller.
  gw.requestTime(receiveTime); 
}

// This is called when a new time value was received
void receiveTime(unsigned long time) {
  // Ok, set incoming time
  Serial.print("Got Time");
  Serial.println(time);
  setTime(time);
  timeReceived = true;
}
 
void loop()    
{    
  unsigned long now = millis();
  gw.process();
 
   // If no time has been received yet, request it every 10 second from controller
  // When time has been received, request update every hour
  if ((!timeReceived && now-lastRequest > 20*100)
    || (timeReceived && now-lastRequest > 60*1000*60)) {
    // Request time from controller.
    Serial.println("requesting time");
    gw.requestTime(receiveTime); 
    lastRequest = now;
  }
 
  // Print time every second
  if (timeReceived && now-lastUpdate > 1000) {
    Serial.print(hour());
    printDigits(minute());
    printDigits(second());
    Serial.print(" ");
    Serial.print(day());
    Serial.print(" ");
    Serial.print(month());
    Serial.print(" ");
    Serial.print(year());
    Serial.println();
    lastUpdate = now;
  }
}

void printDigits(int digits){
  // utility function for digital clock display: prints preceding colon and leading 0
  Serial.print(":");
  if(digits < 10)
    Serial.print('0');
  Serial.print(digits);
}

Here is the serial monitor output.

sensor started, id 5
send: 5-5-0-0 s=255,c=0,t=17,pt=0,l=3,st=ok:1.4
send: 5-5-0-0 s=255,c=3,t=6,pt=1,l=1,st=ok:0
read: 0-0-5 s=255,c=3,t=6,pt=0,l=1:I
send: 5-5-0-0 s=255,c=3,t=11,pt=0,l=5,st=ok:Clock
send: 5-5-0-0 s=255,c=3,t=12,pt=0,l=3,st=ok:1.0
send: 5-5-0-0 s=255,c=3,t=1,pt=0,l=3,st=ok:1.0
requesting time
send: 5-5-0-0 s=255,c=3,t=1,pt=0,l=3,st=ok:1.0
read: 0-0-5 s=255,c=3,t=4,pt=0,l=10:1411246677
requesting time
send: 5-5-0-0 s=255,c=3,t=1,pt=0,l=10,st=ok:1411246677
read: 0-0-5 s=255,c=3,t=4,pt=0,l=10:1411246679
requesting time
send: 5-5-0-0 s=255,c=3,t=1,pt=0,l=10,st=ok:1411246679
read: 0-0-5 s=255,c=3,t=4,pt=0,l=10:1411246681

It seems like the sensor starts sending the time back to the controller but timeReceived never gets set to true so the current time is not printed to the serial monitor every second. Any suggestions?