The Law of Limitation, primarily governed by the Limitation Act, 1963, prescribes time limits for filing suits, appeals, and applications, and lays down detailed rules for computing these periods to balance finality with fairness.
Core definitions
- Period of limitation and prescribed period: “Period of limitation” is the time set in the Schedule for a suit, appeal, or application; “prescribed period” is that period computed under the Act’s provisions, especially sections 2(j), 3–24, and the Schedule.
- Suit, application, acknowledgment, payment: A suit excludes appeals/applications; “application” includes a petition; written acknowledgment (section 18) and part-payment (section 19) are defined triggers affecting computation; key commercial instruments like “bill of exchange,” “promissory note,” and “bond” are also defined for schedule mapping.
Limitation and its computation
- Bar of limitation: Every suit, appeal, or application filed after the prescribed period must be dismissed, even if limitation isn’t pleaded, subject to sections 4–24 exceptions (e.g., court closure, condonation).
- Continuous running of time: Time runs continuously once it begins, except as interrupted or extended by specific statutory grounds (e.g., disability, acknowledgment, fraud) under sections 6–9 and 12–24.
Computation of the period
- Exclusions: Time to obtain copies of decrees/orders for appeals, or time spent prosecuting with due diligence before a court lacking jurisdiction, is excluded under sections 12 and 14; other exclusions include injunction stays and notice periods under section 15.
- Condonation and closure: If the court is closed on the last day, filing on the next opening day is valid (section 4); delays may be condoned for sufficient cause in appeals/applications (section 5), but generally not for suits.
Acts giving rise to a fresh period
- Acknowledgment in writing: A written, signed acknowledgment of liability made before expiry of limitation starts a fresh limitation period from the date of acknowledgment (section 18).
- Part‑payment: Payment on account of a debt or of interest on a legacy, made before expiry and acknowledged in writing by the payer, gives a fresh period from the date of payment (section 19).
- By another person: Acknowledgment or payment by an agent/partner/surety may bind others as specified in section 20, aligning with agency and partnership principles.
Special interruption or start rules
- Fraud and mistake: Limitation starts when fraud is discovered or could, with reasonable diligence, be discovered; similarly for mistakes (section 17).
- Disability: Where the person entitled is under legal disability (minority, insanity), limitation begins when the disability ceases; multiple disabilities are handled by sections 6–8.
- Death and parties: Sections 16 and 21 address accrual around death, and effects of adding or substituting parties on limitation, with safeguards against prejudice and misuse.
Key schedule highlights
- Contracts and accounts: Typical periods are three years for suits on contracts, promissory notes, bills of exchange, price of goods, and money lent, generally running from breach, due date, demand, or delivery as provided by the specific Article.
- Decrees and instruments: Suits for execution of decrees, cancellation/rectification/rescission of instruments, or enforcement of mortgages carry distinct periods; for redemption/foreclosure, the Act reduced some earlier long periods to 30 years in specified cases.
- Property and adverse possession: For possession of immovable property, Articles 64 and 65 prescribe 12 years, with section 27 extinguishing the right to property upon expiry—an exception where not just the remedy but the right itself is lost.
- Torts and miscellaneous: Injury to person or property, defamation, and other civil wrongs generally see shorter periods (often one to three years), beginning from the date of the act or discovery where the Article so provides; continuing breaches and torts are addressed by section 22.
Practical pointers
- Calendar early: Identify the exact Schedule Article and start date; diarize interim steps like notice requirements or certified copy procurement to benefit from sections 12, 14, and 15.
- Secure acknowledgments: Before expiry, obtain signed acknowledgments or record part‑payments to refresh limitation under sections 18–19; maintain clear documentary trails.
- Mind exceptions: Use section 5 for appeals/applications with sufficient cause; for suits, rely on statutory exclusions (e.g., section 14 bona fide prosecution without jurisdiction) rather than equitable pleas.
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