Limitationact 1963bysubhanbande 170802165639

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THE LIMITATION ACT - 1963

Video Lecture
SUBHAN BANDE
ADVOCATE
KADAPA
subhanbande@gmail.com
Adv. Subhan Bande, Kadapa. subhanbande@gmail.com
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The Concept of ‘Limitation’
 Limitation means a prescribed time limit according to statute.
 The concept of limitation is related with the fixing or prescribing of period for barring
legal actions.
 Delay defeats equity and ‘Visilantibus non dormientibus jura subveniunt’ i.e. the law
assists those that are vigilant with their rights, and not those that sleep thereupon.
 Limitation periods impose time limits within which a party must bring a claim, or give
notice of a claim to the other party. They are imposed by statute, primarily the
Limitation Act -1963.
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Objective of Limitation Act-1963
 “Interest republicae ut sit finis litium” = in the interest of the State, there must be an end
to litigation.
 The object of the Statutes of Limitations to compel a person to exercise his rights of
action within a reasonable time as also to discourage and suppress stale, fake or
fraudulent claims. (AIR 1972 SC 1935).
 The purpose of the statute of limitation is not to destroy the rights but it is founded on
public policy fixing a life span for the legal remedy for the general welfare. (AIR 2001
Orissa 158).
BASIC STRUCTURE OF LIMITATION ACT- 1963
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LIMITATION OF RULES FOR ACQUISITION OF
PRILIMINARY MISCELLANEOUS
SUITS, APPEALS & COMPUTATION OF OWNERSHIP BY
PROVISIONS PROVISIONS
APPLICATIONS PERIOD OF LIMITATION POSSESSION
Sec-1 & 2 Sec-28 to 32
Sec-3 to 11 Sec-12 to 24 Sec-25 to 27
Sec-3: Bar of Limitation Sec-25 & 26:

Sec-10: Suit against Trustee
A. Exclusion of Time in Counting the Period of Limitation
Sec-9: Presence of Letter of Administration
Prescription
(exception to Sec-3)
Sec-4: Closure of Court Sec-12: Exclusion of Times Easements
Sec-5: Delay Condoned Sec-13: Reason for ‘Pauperism’
Sec-6 to 8: Legal Disability Sec-14: Effect of Bonafide Litigation in the Wrong Court Sec-27:
Sec-9: Running of Time Sec-15: Other Cases Adverse
Sec-11: Suit on Foreign Contract B. Effect of Certain Causes on Period of Limitation Possession
Sec-16: Death
SCHEDULE Sec-17: Fraud or Mistake
Sec-18: Written Acknowledgement
Division-I: Suits (Articles 1 to 113)
Sec-19: Payment of Debt or Interest
• Min:1Year Max: 30 Years Sec-20: Acknowledgement or payment by another person
Division-II: Appeals (Articles 114 to 117) Sec-21: New Plaintiff/Defendant joining as a Party
• Min: 30 Days Max: 90 Days
Division-III: Applications (Articles 118 to 137) C. Other Rules
Sec-22: Continuous Beaches and Torts
• Applications U/O-21 CPC: (Art. 134, 135 & 136) –
Sec-23: Suit not actionable per se
1, 3 & 12 years respectively
Sec-24: Computation of time mentioned in Instruments.
• Other Applications – (Art.118 to 133)
Min: 10 Days Max: 90 Days
I. Preliminary Provisions 5
(Sections 1 & 2)
Extent (Sec-1)
 The Limitation Act-1963 extends to whole of India except the State of Jammu and
Kashmir (Sec-1).
Important Definitions (Sec-2)

 Period of Limitation means the period of limitation prescribed for any suit, appeal or
application by the Schedule, and
 ‘prescribed period’ means the period of limitation computed in accordance with the
provisions of the Act (Section-2 (j)).
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II. Limitation of Suits, Appeals & Applications
(Sections 3 to 11)
 Sec-3: Bar of Limitation Subject to the provisions contained in Sections 4 to 24…
 Sec-4: Closure of Court
Suit instituted
 Sec-5: Delay Condoned Every (plaint / pauper / claim against company / set-off / counter claim)
 Sec-6 to 8: Legal Disability Appeal preferred &

Application made..
 Sec-9: Running of Time
 Sec-11: Suit on Foreign Contract after the prescribed period shall be dismissed.
 The Act only bars the remedy and not the right.
Exceptions
Suits against Trustees, Hindu, Muslim or Buddhist Religious or Charitable Endowments (Sec-10) – No bar of limitation
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(Sections 3 to 11)
 Sec-3: Bar of Limitation
 Expiry of Prescribed Period when Court is closed:
Where the prescribed period for any suit, appeal or
 Sec-5: Delay Condoned application expires on a day when the Court is closed…
 Sec-6 to 8: Legal Disability
The Suit, Appeal or Application may be instituted on the day
 Sec-9: Running of Time when the Court reopens.
 Sec-11: Suit on Foreign Contract
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(Sections 3 to 11)
 Extension of Prescribed Period in Certain Cases
 Sec-4: Closure of Court or
 Sec-5: Delay Condoned Extension of Limitation Period in Certain
Circumstances:
If the appellant or applicant satisfies the Court that he
 Sec-9: Running of Time had sufficient cause for not preferring the appeal or
 Sec-11: Suit on Foreign Contract making the application, may be admitted even after the
Sufficient Cause prescribed period of limitation.
• The Court must be satisfied with a sufficient cause for
the delay. #AIR 1994 SC 466; AIR 2002 SC 2545.
• Examples of Sufficient Cause Exceptions to Sec-5:
o Illness X Suits
o Death of the blood-related X Application under any provisions of Order-21 of CPC
o Loss of Court Documents (Execution Applications)
o Solitary Confinement
o Counsel’s mistaken advice etc..
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(Sections 3 to 11)
 Sec-3: Bar of Limitation  Legal Disability (Sec-6)
 Sec-4: Closure of Court The following persons are legally recognized as legally
disabled persons under Sec-6.
 Sec-5: Delay Condoned 1. Minor 2. Insane 3. Idiot
 Sec-6 to 8: Legal Disability i. One Legal Disability – They may institute a suit or make an
application after the disability has ceased (within the same
 Sec-9: Running of Time period).
ii. Two Legal Disabilities – after both disabilities have ceased (within
 Sec-11: Suit on Foreign Contract the same period).
NOTE: iii. Legal Disability up to the Death – His legal representative may
institute the suit or make the application after the death (within
• For the purpose of this Section, ‘minor’
the same period).
includes a child in womb. iv. Legal Disability to Legal Representative (iii) – Where the LR, at the
• When there is no next friend / where the next date of death of the person whom he represents, affected by any
friend himself is the wrongdoer / where the such disability, Rule-I & ii shall apply.
next friend has not filed the suit under Order- v. Death of Legal Disabled Person after the Disability ceases but
32 of CPC, the victim can invoke Sec-6 of the Within the Period of Limitation – His LR may institute the suit or make
Limitation Act. the application within the same period after the death.
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(Sections 3 to 11)
 Legal Disability of ONE of Several Persons (Sec-7)
 Sec-4: Closure of Court Where one of several persons jointly entitled to institute a suit or make
an application for execution of decree is under any such disability…
 Sec-5: Delay Condoned
 Sec-6 to 8: Legal Disabilityo Where a discharge can be given without the concurrence of such
person, time will run against them all.
 Sec-9: Running of Time o Where no discharge can be given, time will not run as against any of
them until one of them becomes capable of giving such discharge
without the concurrence of the others or until the disability has
ceased.
 Special Exceptions (Sec-8)

The parties (Sec-6 or 7) shall make the Suit or Application within THREE
YEARS from cessation of the disability. The same rule is applicable in
case of Right of pre-emption.
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(Sections 3 to 11)
 Continuous Running of Time (Sec-9):
When once period of limitation stats running……..
 Sec-5: Delay Condoned no subsequent disability or inability stops it.
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(Sections 3 to 11)
 Suit on Foreign Contract (Sec-11):
Suits instituted on contracts in J&K or in a foreign country shall
 Sec-5: Delay Condoned be subject to the Limitation Act-1963.
III. Rules for Computation of Period of Limitation
(Sections-12 to 24) 13
Exclusion of Time in Counting Effect of Certain Causes on

Other Rules
the Period of Limitation Period of Limitation
 Continuous
 Presence of Letter of Administration  Death
Beaches and Torts
(S-9) (S-16)
(S-22)
 Exclusion of Times  Fraud or Mistake
 Suit not actionable
(S-12) (S-17)
per se
 Reason for ‘Pauperism’  Written Acknowledgement
(S-23)
(S-13) (S-18)
 Computation of
 Effect of Bonafide Litigation in the  Payment of Debt or Interest
time mentioned in
Wrong Court (S-19)
Instruments
(S-14)  Acknowledgement or payment by
(S-24)
 Other Cases another person
(S-15) (S-20)
 New Plaintiff/Defendant joining as a
Party
(S-21)
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 Presence of Letter of Administration (S-9)
Sec-9:
 Exclusion of Times (S-12)
 Reason for ‘Pauperism’ (S-13) Where Letters of Administration to the estate
of a creditor have been granted to his
 Effect of Bonafide Litigation in the Wrong Court (S-14) debtor……
 Other Cases (S-15)
The running of period of limitation for a suit to
Letters of Administration recover the debt shall be suspended while
the LOA continues.
• LOA are granted by a Civil Court to appoint appropriate
people to deal with a deceased person’s estate where
property will pass under Intestacy Rules.
• According to Schedule VII of Indian Succession Act 1925…
An application can be made to competent Court within
14 days after the death. On satisfaction, the Court may
grant LOA.
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Exclusion of Time in Legal proceedings (Sec-12):
In computing the period of limitation for any suit, appeal or
 Reason for ‘Pauperism’ (S-13) application……
 Effect of Bonafide Litigation in the Wrong Court (S-14)
 First day (the day from which such period is to be
 Other Cases (S-15) reckoned) shall be excluded [S-12(1)].
 Day of judgment shall be excluded [Sec-12(2)]
 Time for obtaining a copy of the decree, sentence or order
(against which appeal or application has to be filed) shall
be excluded [S-12(2&3)].
 Time for obtaining a copy of the award (against which an
application to set aside an award) shall be excluded [Sec-
12(4)].

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Exclusion of Time in Cases where leave to sue or
 Exclusion of Times (S-12) appeal as ‘Pauper’ is applied for (Sec-13):
 Reason for ‘Pauperism’ (S-13)
In computing the period of limitation for any suit,
 Effect of Bonafide Litigation in the Wrong Court (S-14) appeal or application for leave to sue or appeal as a
pauper has been made and rejected……
 Time Duration - between the date when the
pauper has been made and the date when it is
rejected’ shall be excluded.

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 Reason for ‘Pauperism’ (S-13)
 Effect of Bonafide Litigation in the Wrong Court (S-14)
Exclusion of Time of proceeding Bonafide in Court without Jurisdiction (Sec-14):
In computing the period of limitation for any suit, appeal or application……
 Time spent (by mistake or misunderstanding) in proceeding bona fide in the Court
without jurisdiction shall be excluded.
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Exclusion of Time in Certain Other Cases (Sec-15):
 In computing the period of limitation for any suit, appeal or application……

Reason for ‘Pauperism’ (S-13)
 Effect of Bonafide Litigation intheTime Duration
Wrong Court (S-14)
- the day on which a stay by injunction or order was issued and the day
on which it was withdrawn, shall be excluded [Sec-15 (1))].
 If the consent/sanction of Government or some authority was required to be obtained
for filing suit/application or notice was required to be given to Government in
accordance with law, the period spent in obtaining the consent/sanction or time in
giving notice shall be excluded. [Section 15(2)].
 In a suit for possession by a purchaser at a sale in execution of a decree, the time during
which a proceeding to set aside the sale has been prosecuted shall be excluded
[Section 15(4)].
 In any suit the time during which the defendant has been absent from India shall be
excluded [Section 15(5)].
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B. Effect of Certain Causes on Period of Limitation
 Death (S-16)
Effect of Death on or before the accrual of the Right to sue
 Fraud or Mistake (S-17) (Sec-16):
 Written Acknowledgement (S-18)
Where a person who would have a right (to institute a suit or make
 Payment of Debt or Interest (S-19) an application) dies before the right accrues…
 The period of limitation shall be computed from the time when
 Acknowledgement or payment by another person
there (S-20)Representative (LR) of the deceased capable of
is a Legal
instituting such suit or making such application. [Sec-16(1)].
 New Plaintiff/Defendant joining as a Party (S-21)
Where a person against whom a right to institute a suit or make an

application would have accrued dies before the right accrues…..
 The period of limitation shall be computed from the time when
Exceptions to Sec-16 there is a Legal Representative (LR) of the deceased against
whom the plaintiff may institute such suit or make such
o Suit to enforce right of pre-emption application. [Sec-16(2)].
o Suit for the possession of immovable property
o Suit for a hereditary office
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 Death (S-16) Effect of Fraud or Mistake (Sec-17):
 Fraud or Mistake (S-17)  Period of limitation starts….
 Only after fraud or mistake is discovered by affected party.
 Written Exceptions
Acknowledgement
to Sec-17 (S-18)  In case of a concealed document –when (at the first time) the concealed document is
produced or compelling its production.
o Payment of -Debt
In case of Fraud or Interest
Any property (S-19)
purchased for
valuable consideration by a person who is not  If a JDR has prevented the execution of a decree or order by fraud or force within the
period of limitation, the Court may extend the period for execution of the decree or
 Acknowledgement orofpayment
party to the fraud & at the time by
purchase if he another person (S-20)
order on the application of the DHR.
did not know that any fraud had been committed.
o New Plaintiff/Defendant joining as a Party
In case of Mistake - Any property purchased for
(S-21) is to be made within one year from the date of discovery of the fraud or the
 Application
valuable consideration by mistake & at the time of cessation of force, as the case may be.
purchase if he did not know that any mistake had
been committed.  Vidarbha Veneer Industries Ltd. v. UOI - 1992 (58) ELT 435 (Bom HC) - Limitation starts
from the date of knowledge of mistake of law. It may be even 100 years from date of
o In case of Concealed Document - Any property payment.
purchased for valuable consideration by a person
 2001(130) ELT 404 (SC 3 member bench) -The cardinal principal enshrined in Section 17
who is not party to the concealment & at the time
is that fraud nullifies everything. Thus, appeal against the party can be admitted
of purchase if he did not know that the document
beyond limitation, if party has committed fraud.
had been concealed.
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 Death (S-16)
Effect of Acknowledgement in Writing (Sec-18):
 Fraud or Mistake (S-17)
 If acknowledgment of any property, right or liability
is obtained in writing duly signed by the party
 Payment of Debt or Interest (S-19) against whom such property, right or liability is
claimed, before the expiration of period of
 Acknowledgement or payment by another person (S-20)
limitation, a fresh period of limitation is computed
from date of acknowledgment.
 Acknowledgment can be signed either personally
or by an agent duty authorized in this behalf.
Acknowledgement = admission of an existing

monetary or other liability of a person
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 Death (S-16)
Effect of Payment on Account of Debt or of
 Fraud or Mistake (S-17) Interest on Legacy (Sec-19):
 If payment on account of a debt or of interest on a
 Payment of Debt or Interest (S-19) legacy is made before the expiration of the
prescribed period by the person liable to pay the
 Acknowledgement or payment by another person (S-20) debt or legacy or by his agent duly authorized in
 New Plaintiff/Defendant joining as a Party (S-21) this behalf, a fresh period of limitation shall be
computed from the time when the payment was
made.
 Where mortgaged land is in the possession of the

mortgagee, the receipt of the rent or produce of
such land shall be deemed to be a payment.
 ‘Debt’ does not include money payable under a

decree or order of a court.
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 Death (S-16)
Effect of Acknowledgement or Payment
 Fraud or Mistake (S-17) in Writing (Sec-20):
 The expression “agent duly authorized in
 Payment of Debt or Interest (S-19) this behalf” in Sections 18 and 19 shall, in
the case of a person under disability.
 New Plaintiff/Defendant joining as a Party (S-21)  It includes
 Lawful guardian,
 Committee or manager or an agent duly
Exceptions to Sec-20
X One of several joint contractors authorized by such guardian,
X Partners  Committee or manager to sign the
X Executors acknowledgment or make the payment.
X Mortgagees
…….chargeable by reason only of a written acknowledgment signed by, or of
a payment made by, or by the agent, of, any other or others of them.
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 Death (S-16)
Effect of Substituting or Adding New Plaintiff or
 Fraud or Mistake (S-17) Defendant (Sec-21):
 If after the institution of a suit, a new plaintiff or,
 Payment of Debt or Interest (S-19) defendant is substituted or added, the suit shall be
deemed to have been instituted when he was so
made a party [Sec-21(1)].
 If the Court is satisfied that the omission to include a
new plaintiff or defendant was due to a mistake
Exceptions to Sec-21 made in good faith…..it may direct the suit shall be
Sec-21(1) shall not apply to a case where a party
deemed to have been instituted on any earlier date
is added or substituted owing to assignment or [Sec-21(2)].
devolution of any interest during the pendency of
a suit or where a plaintiff is made a defendant or a
defendant is made a plaintiff
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C. Other Rules
 Continuous Breaches and Torts (Sec-22)

 In case of continuous breach of contract or tort, a fresh period of limitation begins to run at
every moment of time during which the breach or tort continues.
 Suits for Compensation for acts not actionable without special damage (Sec-23)
 In the case of a suit for compensation for an act which does not give rise to a cause of
action unless some specific injury actually results therefrom, the period of limitation shall be
computed from the time when the injury results.
 Computation of time mentioned in Instruments (S-24)
 All instruments shall for the purposes of this Act be deemed to be made with reference to
the Gregorian Calendar.
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IV. Acquisition of Ownership by Possession
Secs-25 to 27 & 29(4)
Identical with Secs-15 to 17 of Indian Easements Act-1882
 Acquisition of Easement by Prescription (Sec-25)
In case of the access and use of way, water

In case of the access and use of light or air for any
course, use of water, or other easement….
building….
o The claimed right has been enjoyed for 20
o The claimed right has been enjoyed for 20 years
years [30 years in case of the Government
[30 years in case of the Government Property. S-
Property. S-25(2)]
25(2)]
o As an easement
o As an easement
o As of right Period of 20 years
o As of right
o Without interruption shall be taken to be
o Without interruption
o Peacefully a period ending
o By any person
o Openly within ‘TWO YEARS’
o By any person next before the
institution of the suit.
Easement shall be absolute and final [Sec-25(2)].
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IV. Acquisition of Ownership by Possession
Secs-25 to 27 & 29(4)
Identical with Secs-15 to 17 of Indian Easements Act-1882
 Exclusion in favour of Reversioner of Servient Tenement (Sec-26)
o Any easement by virtue of any interest for life or in terms of years exceeding 3 years…
o The time of the enjoyment of such easement (during the continuance of such interest or term) shall
be excluded in computation of the period of 20 years (i.e. that period is not treated as Easement)
 Extinguishment of Right to Property (Sec-27)

o If a party fails to institute a suit for possession of any property within the specified period of limitation
under this Act, his right to such property shall be extinguished.
 According to Sec-29(4)……
o Sec- 2(f), 25 & 26 shall not apply to the territories to which the Indian Easement Act, 1882 applies.
 See Article 64, 65 & 66 for more details

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V. Miscellaneous Provisions
Secs 28-32
 The Limitation Act 1963 shall not affect Section 25 of the Indian Contract Act, 1872
(Sec-29(1)).
 The Act shall not apply to any suit or other proceeding under any law with respect to
Marriage and Divorce (Sec-29(3)).
 The Indian limitation Act, 1908 (9 of 1908) is here by repealed (Sec-32).

IMPORTANT POINTS TO REMEMBER
THE LIMITATION ACT, 1963
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DESCRIPTION PERIOD OF LIMITATION
Minimum – 1 year
DIVISION-I: SUITS
Maximum – 30 years
1. Suits relating to Accounts, Contracts, Declarations, Movable Property,
3 years
To set aside Decrees & Instruments
2. Suits relating to Immovable Property Minimum – 3 years; Maximum – 30 years
3. Suits relating to Torts Minimum – 1 year; Maximum - 3 years
4. Suits relating to Trusts and Trust Property Minimum – 3 year; Maximum – 12 years
5. Suits for which there is no prescribed period 3 years
Minimum – 30 days (1 M)
DIVISION-II: APPEALS
Maximum – 90 days (3 M)
Minimum – 10 days
DIVISION-III: APPLICATIONS
Maximum – 12 years
1. Applications U/O-21 CPC
Minimum – 1 year; Maximum – 12 years
2. Applications in Specified Cases

Minimum – 10 days; Maximum – 90 days
3. Applications for which no limitation is specified 3 years

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IMPORTANT POINTS TO REMEMBER
THE LIMITATION ACT, 1963
 The Limitation Act-1963 and CRPC-1973 LIMITATION FOR COGNIZANCE OF OFFENCES

 For an Appeal from Sentence of Death passed by COS / (Section 468 of Cr PC)
HC in the exercise of its original jurisdiction – the period of
Court cannot take cognizance of offence after
limitation is 30 days.
expiry of following limitation period …
 For an Appeal from any Other Sentence or Order not
being an Order of Acquittal – 60 days.  Six months, if the offence is punishable
 For an Appeal to the HC – 60 days only with fine
 For an Appeal to Other Court – 30 days
 One year, if the offence is punishable
with imprisonment for a term not
 The Limitation Act-1963 and CPC-1908 exceeding one year
 For an Appeal to a HC from any decree or order – 90 days  Three years, if the offence is punishable
 For an Appeal to any other Court fro any decree or order – with imprisonment for a term not
30 days exceeding three years.
 For an Appeal from a decree or order of any HC to the
Note: In case of economic offences, there is
same Court – 30 days
no time limit.
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1

THE LIMITATION ACT - 1963

 Limitation means a prescribed time limit according to statute.

Sec-3: Bar of Limitation Sec-25 & 26:

Important Definitions (Sec-2)

 Sec-6 to 8: Legal Disability Appeal preferred &

 Special Exceptions (Sec-8)

Exclusion of Time in Counting Effect of Certain Causes on

Adv. Subhan Bande, Kadapa. subhanbande@gmail.com

Adv. Subhan Bande, Kadapa. subhanbande@gmail.com

Exclusion of Time of proceeding Bonafide in Court without Jurisdiction (Sec-14):

In computing the period of limitation for any suit, appeal or application……

 In computing the period of limitation for any suit, appeal or application……

Where a person against whom a right to institute a suit or make an

Acknowledgement = admission of an existing

 Where mortgaged land is in the possession of the

 ‘Debt’ does not include money payable under a

 Continuous Breaches and Torts (Sec-22)

 Acquisition of Easement by Prescription (Sec-25)

In case of the access and use of way, water

 Extinguishment of Right to Property (Sec-27)

 See Article 64, 65 & 66 for more details

 The Indian limitation Act, 1908 (9 of 1908) is here by repealed (Sec-32).

2. Applications in Specified Cases

3. Applications for which no limitation is specified 3 years

 The Limitation Act-1963 and CRPC-1973 LIMITATION FOR COGNIZANCE OF OFFENCES

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