Limitation is the most avoidable way to lose a good case. The Limitation Act, 1963 prescribes the period for each kind of proceeding in its Schedule, and a suit filed after it must be dismissed, whether or not the other side raises the point.
The periods that come up most
| Claim | Period | Runs from |
|---|---|---|
| Money due on a contract or for goods sold | 3 years | When the amount becomes due |
| Compensation for breach of contract | 3 years | Date of breach |
| Specific performance | 3 years | Date fixed for performance, or refusal |
| Recovery of possession of immovable property | 12 years | When possession becomes adverse |
| Enforcing payment secured by a mortgage | 12 years | When the money becomes due |
| Execution of a decree | 12 years | Date of the decree |
| Appeal to the High Court from a decree | 90 days | Date of the decree |
The provision that saves most claims
Section 18: a written, signed acknowledgement of liability made before the period expires starts a fresh period from the date of the acknowledgement. Section 19 does the same for a part payment recorded in the handwriting of, or signed by, the payer. On any long-running account, get a signed confirmation of balance every year. It is a two-line document that preserves the claim indefinitely.
Section 18: a written, signed acknowledgement of liability made before the period expires starts a fresh period from the date of the acknowledgement. Section 19 does the same for a part payment recorded in the handwriting of, or signed by, the payer. On any long-running account, get a signed confirmation of balance every year. It is a two-line document that preserves the claim indefinitely.
What extends or suspends time
- Section 12: the time taken to obtain a certified copy is excluded when computing the period for an appeal.
- Section 14: time spent bona fide prosecuting the matter in a court without jurisdiction is excluded.
- Section 17: where the case is based on fraud or mistake, time runs from when it was, or could reasonably have been, discovered.
- Legal disability, such as minority or unsoundness of mind, postpones the start.
Condonation of delay
Section 5 permits condonation of delay in appeals and applications on sufficient cause. Note carefully that Section 5 does not apply to suits. A time-barred suit cannot be revived by explaining the delay, which is why the three-year period on a money claim is genuinely final.
Practical advice
Diarise the date the moment a dispute arises. If the period is close, file first and negotiate afterwards; a filed suit can always be settled, but a time-barred claim cannot be resurrected.