The Limitation Act, 1963

Dr. Manoj Sharma

History of Limitation Statute

 In England, James Statute 1623

 In India, Hindu Law – No Law of limitation
 The first enactment – 1859 Act
 Act of 1871
 Act XV of 1877
 Act IX of 1908
 Act 36 of 1963
Object of Law of Limitation

 To Quiet long possessions

 To extinguish stale demands
Law of Limitation

 Limitation Act not applicable to criminal

proceedings
 Limitation bars remedy not right
 Law of Limitation based on public policy
 Limitation Act, 1963 deals with Limitation and
Prescription both – Procedural as well as
substantive law
Limitation Act, 1963

 Applicable to Whole of India except the state

of Jammu & Kashmir
 Applicable from 01-01-1964
Definitions – s. 2

 “easement” – 2(f)
 “period of limitation” and “prescribed period”
– 2(j)
Bar of Limitation – Section 3
 Duty of the court
 Period can not be waived by the parties; can not be contracted out by
parties
 Every Suit, appeal and application after prescribed period – shall be
dismissed – even though limitation not set up as defence
 Suit is instituted –
– when valid plaint presented to proper officer of the court;
– in case of pauper- when application for leave to sue as a pauper filed
– Set off – from the date of suit
– Counter claim – from the date when counter claim is pleaded
 Appeals – if presented after limitation period – to be accompanied by
application and affidavit – Order XLI (3A) {State of M.P. v. Pradeep
Kumar (2000) 7 SCC 372 – defect curable}
When court is closed – s. 4

 When court is closed on the day when prescribed

period expires, suit, appeal or application can be
filed on the next day when court reopens
 Court is deemed to be closed, if it remains closed
only for a part of a day
 When a particular business can not be transacted, it
is deemed to be closed for that purpose
 Court in section 4 means proper court and not wrong
court
Condonation of delay in certain cases
– s. 5

 Section 5 applicable to
– Appeals
– Applications other than Order 21 applications
– „Court”
 Section 5 exception to section 3
 Section vests discretion on the court to do
substantial justice
 Discretion to be exercised when condition precedent
is satisfied i.e. court is satisfied that sufficient cause
exists
 Written application not required u/s 5
 “within such period” – period of delay to be explained
– Ram Lal v. Rewa Coalfields Ltd., AIR, 1962 SC
361 {The expression "within such period" does not
mean during such period and the failure of the
appellant to account for his non-diligence during the
whole period of limitation does not disqualify him
from praying for condonation of delay. In showing
sufficient cause for condoning the delay the
appellant has to explain the whole of the delay
covered by the period between the last day of
limitation and the date on which the appeal was
actually filed.
 Each day‟s delay to be explained
 Illness of the applicant/appellant
 Rights vested in the respondent can not be lightly
taken away
 Mistaken Legal Advise ( State of W.B. v. Howrah
Municipality, AIR 1972 SC 749)
 Unsettled law
 Appellant misled by order, practice or judgment of
High Court
 Applicant bonafidely in wrong court – s. 14
 Delay of few days vis-à-vis inordinate delay
 No special protection/favour for
applications/appeals by Government
 Reasons to be recorded
 Liberal interpretation to advance substantial
justice
Collector v. Mst. Katiji & others, AIR
1987 SC 1353

 Ordinarily a litigant does not stand to benefit by lodging an

appeal late.
 Refusing to condone delay can result in a meritorious matter
being thrown out at the very threshold and cause of justice
being defeated. As against this when delay is con-doned the
highest that can happen is that a cause would be decided on
merits after hearing the parties.
 "Every day's delay must be explained“ does not mean that a
pedantic approach should be made. Why not every hour's
delay, every second's delay? The doctrine must be
applied in a rational common sense pragmatic manner.
 When substantial justice and technical considerations are pitted
against each other, cause of substantial justice deserves to
be preferred for the other side cannot claim to have vested
right in injustice being done because of a non-deliberate delay.
 There is no presumption that delay is occasioned deliberately,
or on account of culpable negligence, or on account of
malafides. A litigant does not stand to benefit by resorting to
delay. In fact he runs a serious risk.
 It must be grasped that judiciary is respected not on account
of its power to legalize injustice on technical grounds
but because it is capable of removing injustice and is expected
to do so.
Legal Disability – s. 6

 Applicable to
– Suits
– Applications under Order XXI
 Not applicable to Pre-Emption suits – s. 8
 Insanity, Minority or idiocy at the time from which prescribed
period is to start
 Period of limitation will start after the legal disability has ceased
 If more than one disability, period will start after all disabilities
ceased
 If before one disability ceases, he is afflicted by another – after
all disabilities ceased
 If disability continues upto death – suit can
be filed by representatives – same period
 If on the date of death, representative is
suffering from such disability – after his
disability ceases
 After the ceasation of disability/death –
maximum period available is 3 years i.e. the
period of limitation can not be extended
beyond 3 years after ceasation – section 8
Disability of one of several persons –
s. 7

 Persons jointly entitled to file a suit or application

under order 21
 One of them under disability
 If valid discharge can be given by others without the
consent of person under disability – limitation period
will start
 If valid discharge can not be given by others –
limitation will not start till the disability ceases
Continuous running of time – s. 9

 Once limitation period starts, no subsequent

disability or inability stops it – s. 9
 Where a person dies after ceasation of
disability – legal representatives can file suit
in the balance limitation period – s. 6(5)
Suits against trustees – s. 10

 Property vested in trust for a specific purpose

 Suit against
– that person or
– his legal representatives or
– Assigns (not for valuable consideration)
 Suit for the purpose of following trust property,
proceeds of such property or account of such
property
 No period of limitation
Suits on contracts made outside India
– s. 11

 Lex Loci Contractus

 Lex Fori
 Suit instituted in India on the basis of contracts entered into in J
& K or in foreign country – governed by Limitation Act, 1963
 If a suit dismissed in foreign country on the ground of limitation,
fresh suit can be filed in India, if limitation Act permits
 However, law of limitation of a foreign country is good defence
if both the conditions are satisfied
– Foreign law of limitation not only bars remedy but also right
– Parties were domiciled at that place during limitation period
Computation of Limitation Period

 Starting day to be excluded – s. 12

 In appeals, revision, review – day of judgment and
time required for obtaining a copy of decree to be
excluded
 Time required for obtaining copy of judgment to be
excluded
 In case of application to set aside an award – time
requisite for obtaining copy of award to be excluded
Suit or appeal by pauper – s. 13

 Where application for leave to sue/appeal as

a pauper filed and rejected
 Time during which applicant prosecuting in
good faith to be excluded
Suit filed in a wrong court – s. 14
 Applicable to
– Suits
– Applications
 Plaintiff or applicant prosecuting previous suit in wrong court –
court of first instance, appellate court or revisional court
 Wrong court – want of jurisdiction or other cause of like nature
– misjoinder of parties or causes of action
 previous suit prosecuted with due diligence
 Suit filed in good faith
 Matter in issue in previous and new suit are same
 The said period to be excluded – day on which suit filed and
day upto the day on which decided
Exclusion of time in other cases – s. 15

 Suit or application for execution

 Whose institution or execution stayed
 Time during which stayed to be excluded
 In case of a suit where notice is required, consent of government is
required – period of notice/consent to be excluded
 Where receiver/liquidator appointed in insolvency/winding up
proceedings and any suit/application for application by them to be filed
– time starting with date of institution of proceedings for their
appointment to date of appointment plus three months - to be excluded
 In case of suit for possession by auction purchaser – period during
which application for setting aside sale – to be excluded
 In case of suits - period during which defendant absent from India – to
be excluded
Effect of death – s. 16

 Applicable to
– Suits
– Applications
 Not applicable to
– Pre- emption suits
– Suits for possession of immovable property or hereditary
office
 Person dies before accrual of cause of action
 Period of limitation will start when there is a legal
representative of the deceased
Effect of fraud or mistake – s. 17

 Applicable to
– Suits
– Applications
 Fraud of the defendant/respondent or his agent or
 Information regarding right/title concealed by fraud
 Document concealed by fraud
 Suit for relief from the consequences of mistake
 Period of limitation will start when such fraud
discovered or could have been discovered with
reasonable diligence
 Section does not enable any suit to be instituted for recovery of
property or for setting aside any transaction where
– The property has been purchased for valuable consideration
– By a person without being party to such fraud/concealment
– Person had no knowledge or no reason to believe regarding
fraud/mistake/concealment
 In case of execution – where execution prevented by force or
fraud, decree holder/judgment creditor can make an applicable
after the expiry of limitation – such application can be made
within one year of detection of fraud or cessation of force
Effect of Acknowledgment in Writing-
s. 18

 Acknowledgment is admission of truth of one‟s

liability
 Acknowledgment of Debt under Indian Stamp Act,
1899
 Acknowledgment u/s 17(1)(c) of Registration Act,
1908
 Acknowledgement should be in writing and signed
 Need not be in handwriting of the person
acknowledging
Who can make acknowledgment

 Party
 Person through whom party derives title
 Duly authorised agent
 Pleader
 Receiver
 Official Assignee
 Executor
 Acknowledgment must be made before expiry of period of limitation
 Need not be a promise to pay
 Liability must be in existence on the day of acknowledgment
 Acknowledgment in written statement in previous suit is good acknowledgment
 Entry in schedule of creditors during insolvency amounts to acknowledgment of
liability
 Acknowledgment does not create a new contract or a new right
 Need not be addressed to any party
 Conditional acknowledgment
 Time for payment has not come or acknowledgment coupled with claim for set
off or acknowledgment coupled with refusal to pay – sufficient
 Acknowledgment by minor
 BOP
Part Payment of Debt or interest on
legacy – s. 19

 Part payment or payment of interest on legacy

 Must be made before expiration of period of
limitation
 Fresh period of limitation if
– Acknowledgment of payment in the handwriting of the
person paying or signed by the person paying
 Payment and acknowledgment need not be
simultaneous
 More than one debt
Who can make payment

 Party
 Duly authorised agent
 Pleader
 Receiver
 Surety
Acknowledgment by other persons –s .
20

 In case of persons under legal disability -acknowledgment by duly

authorised agent
 Agent includes
– Lawful guardian
– Committee
– Manager
 Acknowledgement by
– Joint Contractors
– Mortgagees
– Executors
– Partners
– Limited owner of property – valid against reversioner
– Karta
– Principle & Surety
Effect of substitution or addition of
plaintiff or defendant –s . 21

 Limitation period starts from the date when the party

is joined/substituted
 O. I, r. 10 of CPC
 Assignment or devolution of interest – from the date
of institution of suit
 Amendment of pleadings
 Applicable to suits not to appeals, applications
 Appeals – O. 41(20)
 Suits by firm
 Suits by minor
Continuing Breaches and torts –s .22

 Ubi Jus Ibi Remedium

 Fresh period of limitation
Suits for compensation of acts not
actionable without special damages –
s. 23

 From the date of injury

Easement – s. 25-26
 S. 25 not exhaustive – „other easements‟
 Right to light, air, way, use of water, watercourse
 Twenty years
 Peaceably enjoyed
 Openly enjoyed
 As of right
 Without interruption
 20 years/ 30 years
 Twenty years period to be reckoned which expired within two years
 Section 25 not applicable where Easement Act is applicable
 Easement Act is applicable in Madras, Bombay, A.P., Kerala, Agra,
Oudh, Coorg, Punjab {Indian Easements (Punjab Extension) Act, 1961
Exclusions – s. 26

 When property was with limited owner or intt.

For life or for period more than 3 years
 Such period to be excluded from twenty
years
 If easement is resisted within 3 years from
the conclusion of such interest by
reversioners
 Mortgagee in possession
Extinguishment of right to property – s.
27

 Exception to general principle

 Any property
 Suit for possession barred not suit for
specific performance
 Adverse possession
 Applicable to suits only
Savings – s. 29

 S. 25 of Indian Contract Act, 1872

 Local or special laws
 S. 25-26 not applicable where Indian
Easements Act, 1882 applicable
Period of limitation under the act of
1908 – s. 30

 If Act of 1963 prescribes shorter period –

then 7 years or period under the old Act
whichever is less
 If 7 years + already expired period is less
than the period prescribed under 1963 Act,
the 1963 Act applicable
 Appeal or application – 90 days or period
under the old Act whichever is less