LIMITATION ACT, 1963 — IMPORTANT CONCEPTS & SECTIONS

 

LIMITATION ACT, 1963 — IMPORTANT CONCEPTS & SECTIONS

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1. Limitation of Suits, Appeals and Applications

Sections 3 – 11

• Section 3 – Bar of Limitation
  Any suit, appeal or application filed after the prescribed limitation period shall be dismissed, even if limitation is not pleaded.
• Section 4 – Expiry when courthouse closed
  If limitation expires on a day when the court is closed, filing may be done on the next working day.
• Section 5 – Extension of prescribed period for appeals/applications
  Delay may be condoned if sufficient cause is shown (NOT applicable to suits).
• Section 6–8 – Legal disability
  Deals with minors, insane or disabled persons and extension of limitation.
• Section 9 – Continuous running of time
  Once time begins to run, it runs continuously unless stopped by a disability or statute.
• Section 10 – Suits against trustees
  No limitation for suits for trust property.
• Section 11 – Suits on foreign contracts
  If foreign law prescribes a shorter limitation, that applies.

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2. Period of Limitation

Sections 12 – 24; Schedule I

• The period of limitation for all suits, appeals, and applications is prescribed in the Schedule (varies case by case).
• Section 12 – Exclusion of time for obtaining copies of decrees/orders.
• Section 13 – Exclusion when leave to sue or appeal as pauper is applied.
• Section 14 – Exclusion of time spent in proceedings prosecuted in good faith before a defective jurisdiction.
• Section 15 – Exclusion of time when institution is stayed by injunction or order.
• Section 16 – Effect of death on the right to sue.
• Section 17 – Effect of fraud or mistake.
• Section 18 – Acknowledgment in writing (fresh limitation).
• Section 19 – Part-payment acknowledges debt.
• Section 20 – Acknowledgment by agent.
• Section 21 – Adding or substituting parties.
• Section 22 – Continuing breaches and torts.
• Section 24 – Case of set-off or counterclaim.

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3. Continuous Running of Time

Section 9

• Once limitation begins, it runs continuously.
• It is not suspended by events like change of ownership, insolvency, etc.
• Time stops only if statute provides (e.g., legal disability).

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4. Effect of Sufficient Cause (Condonation of Delay)

Section 5

• Delay in appeals and applications may be condoned if the applicant shows sufficient cause.
• Does NOT apply to suits.
• Court has discretionary power.

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5. Legal Disability

Sections 6, 7 & 8

• Section 6 – If the person entitled to sue/appeal/apply is a minor, insane, or idiot, the limitation begins when disability ceases.
• Section 7 – If several persons jointly entitled, time begins when one is free from disability.
• Section 8 – Maximum extension = 3 years even after disability ceases.

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6. Computation of Period of Limitation

Sections 12 – 24

Important provisions:

• Section 12 – Excludes time required to obtain certified copies.
• Sections 14 & 15 – Excludes time spent in wrong courts or when suit stayed.
• Sections 16–20 – Effects of death, fraud, acknowledgement, etc.
• Section 22 – Continuing breaches: fresh limitation every day.

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7. Execution of Decrees / Limitation in Execution

Articles 135–137 (Schedule I); Section 3

• Execution of a decree must be filed within the period in the Schedule (usually 12 years for decree of immovable property; 3 years for others).
• Governed by Section 3 which bars delayed applications.

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8. Effect of Death

Section 16

• If the person dies before the right to sue accrues, limitation starts when there is a legal representative.
• If death occurs after right accrues, normal limitation applies.

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9. Fraud or Mistake

Section 17

• If a suit/appeal/application is based on:
• fraud,
• concealment, or
• mistake,
  the limitation begins from the date when:
• fraud is discovered, or
• mistake becomes known.

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10. Acknowledgment in Writing

Section 18

• A written and signed acknowledgment made before expiry of limitation resets the limitation period.
• Must be clear and made to the creditor/claimant.

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11. Part-Payment / Acknowledgement via Payment

Section 19

• Part-payment of debt or interest, before limitation expires, starts a new limitation period.
• Must be acknowledged in the handwriting or signed by debtor or agent.

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12. Acquisition of Ownership by Possession

Section 27

• At the expiry of the limitation period for recovering possession of property (usually 12 years), the right of the original owner gets extinguished.
• This is the legal basis of adverse possession.

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Summary Table (Topic → Section)

Topic	Sections
Limitation of suits, appeals, applications	3–11
Period of Limitation	Schedule I, Sections 12–24
Continuous running of time	9
Sufficient cause for delay	5
Legal disability	6, 7, 8
Computation of limitation	12–24
Execution of decrees	Articles 135–137 (Schedule), Section 3
Effect of death	16
Fraud / mistake	17
Acknowledgement in writing	18
Part-payment	19
Acquisition by possession (adverse possession)	27