A wide range of civil actions in India are time-barred if not initiated within the specific periods prescribed by the Limitation Act, 1963; notably, execution of most civil decrees must be filed within 12 years from when the decree becomes enforceable, while perpetual injunction decrees have no limitation for enforcement. For banking and recovery practitioners, mapping common categories—contracts, mortgages, acknowledgments, and execution—ensures both timely filings and robust limitation computations, including exclusions and extensions recognized by the statute and courts.
Introduction
The Limitation Act, 1963 prescribes definitive time frames for suits, appeals, and applications, with a comprehensive Schedule specifying both the period and the point of commencement for each category, thereby balancing repose with diligence in civil litigation and enforcement. For execution of decrees and orders of civil courts, Article 136 governs with a 12‑year period from when the decree or order becomes enforceable, subject to special rules for mandatory and perpetual injunctions, and statutory exclusions of time under Section 15, which are particularly relevant when stays or prior sanctions intervene.
Core execution rules
- Article 136: Execution of any decree or order (other than a decree granting a mandatory injunction) must be filed within 12 years from when the decree or order becomes enforceable; if payment or delivery is scheduled at a certain date or recurring periods, time runs from the first relevant default for which execution is sought.
- Perpetual injunctions: The proviso to Article 136 states there is no limitation period to enforce a decree granting a perpetual injunction, reflecting the continuing nature of such relief.
- Mandatory injunctions: Article 135 prescribes a 3‑year limitation from the date of the decree, or where a date is fixed for performance, from that date, for enforcement of decrees granting mandatory injunctions.
- Commencement of enforceability: The Supreme Court has clarified that limitation for execution commences when the decree becomes enforceable in fact and law; where enforceability is contingent on subsequent events or final determination, the 12‑year clock runs from that enforceable point, not merely from the date of a compromise or earlier stage.
Exclusions and extensions affecting execution
- Section 15(1): Exclude the time during which execution is stayed by an injunction or order, including the day it is issued and the day it is withdrawn, when computing the limitation for execution applications.
- Section 15(2): Where prior notice, consent, or sanction is required before instituting a suit, exclude the time taken for such procedural preconditions, counting both the application date and receipt date of the order, with analogous principles informing diligence in execution contexts where statutory preconditions exist.
- Section 15(3): For execution by a receiver or liquidator appointed in insolvency or company winding‑up, exclude the period from commencement of such proceedings until three months after appointment when computing limitation.
- Section 14 (general principle): Time spent prosecuting with due diligence in a court without jurisdiction can be excluded when limitation is computed, a doctrine often invoked when execution was mistakenly pursued in a wrong forum, subject to good faith and due diligence.
Common limitation periods relevant to banking and recovery
- Suits on contracts and accounts: Generally 3 years, running from when the right to sue accrues (e.g., breach or default), per multiple articles in the Schedule; practitioners typically pair this with Section 18 acknowledgments to refresh limitation.
- Mortgage enforcement: To enforce payment of money secured by mortgage or charge on immovable property, 12 years from when the money becomes due; foreclosure by a mortgagee is 30 years, from when the money becomes due, reflecting longer repose for proprietary security rights.
- Delivery to auction purchaser: Application for delivery of possession by a purchaser at a sale in execution of a decree is 1 year from when the sale becomes absolute, emphasizing the need for swift post‑sale steps.
- Set aside execution sale: Application to set aside a sale in execution is 60 days from the date of sale, underscoring the short window to challenge sale regularity.
Acknowledgment and part‑payment
- Section 18: A written acknowledgment signed before expiry of the prescribed period starts a fresh limitation from the time of acknowledgment, which is frequently leveraged in banking recovery via balance confirmations or revival letters.
- Section 19: Part‑payment before limitation expiry, endorsed in the debtor’s handwriting or signed acknowledgment of payment, similarly extends limitation, aiding preservation of rights in loan recoveries.
Practical points for execution of money decrees
- Start date discipline: Identify precisely when the decree became enforceable; where obligations are staged or contingent, compute from the relevant default for which execution is sought, per Article 136’s second limb and the Supreme Court’s enforceability test.
- Track stays and wrong‑forum time: Maintain a docket of all intervening stays to claim Section 15(1) exclusion, and document good‑faith prosecution if Section 14 exclusion is to be invoked for time lost in a forum lacking jurisdiction.
- Injunction decrees: Distinguish perpetual from mandatory injunctions—no limitation for enforcing perpetual injunctions, but a 3‑year cap for mandatory injunction decrees, requiring calendar control for compliance steps.
Useful schedule extracts (illustrative)
- Article 136: Execution of any decree or order of a civil court (other than mandatory injunction) — 12 years from enforceability; recurring obligations run from default in respect of which execution is sought; perpetual injunction enforcement not time‑barred.
- Article 135: Enforcement of a decree granting a mandatory injunction — 3 years from decree, or fixed performance date.
- Article 134: Delivery of possession by a purchaser in execution sale — 1 year from when sale becomes absolute
- Articles on mortgage and charge enforcement: 12 years to enforce payment secured by mortgage or charge, from when money becomes due; mortgagee foreclosure: 30 years.
Recent judicial emphasis on enforceability
The Supreme Court has reiterated that limitation for execution begins when the decree is truly enforceable, particularly where a compromise clause becomes executory only after later dispossession or final adjudication; thus, in such cases, computing 12 years from that later enforceable date preserves timely execution. This approach aligns with Article 136’s text and guards against premature or futile execution attempts before crystallization of enforceable rights.
Drafting checklist for bankers and decree‑holders
- Map the decree terms to identify the enforceable trigger and any staged or recurring obligations, then compute the first actionable default’s date for the specific relief sought in execution.
- Record all periods covered by stays, injunctions, insolvency/winding‑up, and similar bars to claim statutory exclusions under Section 15, with supporting orders and dates to the day.
- Secure timely acknowledgments or part‑payments during the suit period to keep underlying money claims alive, and preserve limitation extensions for derivative proceedings where applicable.
Disclaimer
This article provides a practitioner‑oriented overview for educational purposes and should not be treated as legal advice; readers should consult the Limitation Act, 1963 and authoritative case law for matter‑specific application and updates
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