Ashmit Srivastava
- Jun 26
- 11 min read

BASIC PRINCIPLES OF LIMITATION ACT, 1963

ASHMIT SRIVASTAVA

(SHRI RAMSWAROOP MEMORIAL UNIVERSITY)

BASIC PRINCIPLES OF LIMITATION ACT, 1963

INTRODUCTION

The Indian Legal System thrives on the principle of swift and decisive resolution of disputes. “Justice delayed is Justice denied “as the adage goes. The Act serves as the cornerstone of this principle by establishing stipulated and reasonable timeframe for specific suits to be institutionalized accordingly within which the legal disputes & recourse can be sought. It’s like a traffic light signal for litigation professionals to ensure a smooth flow of cases and preventing the legal system from getting gridlocked by excessively delayed claims.

Imagine a scenario where someone injures you today, but you wait 20 years to file a lawsuit. Memories fade, witnesses disappears & especially the evidence crumbles. The pursuit of justice becomes an uphill battle, if not impossible. This is precisely the flaw that the Limitation Act seeks to avoid.

The article delves into the basic principles of the Act, evaluating them wiith the rationale between the time limits in litigation and the exceptions and extensions that allow the flexibility in certain situations. By understanding these basic principles and aspects of the Limitation Act, individuals can effectively safeguard their legal rights and navigate the judicial system with clarity and confidence.

THE RATIONALE BEHIND THE TIME LIMITS

The Limitation Act serves as the critical purpose in legal system by establishing time limits, that are known as limitation periods for filing lawsuits. These deadlines might seem arbitrary at first glance, but the rationale behind them is rooted in ensuring a fair, efficient, and ultimately just legal system. Some basic factors for the rationale behind the time limits has been discussed below:-

1. PRESERVING THE FABRIC OF EVIDENCE:- As the time passes, the quality of evidence in a case can deteriorate significantly the memories fade, witnesses become unavailable and crucial and essential documents might be misplaced or destroyed. Therefore, imposing a time limit to file the law suit in a reasonable ensures the perseverance of the fabric of evidences and maintain the availability of witnesses, and it also encourages a prompt and just justice to the aggrieved parties and also ensures a fairer playing field where both the parties can be involved in a dispute.

2. PROMOTING FINALITY & CERTAINITY :- Imagine a world without limitations. Defendants could face the constant threat to lawsuits for past actions, now matter how longer they occur, thus this lack of certainity would create a cloud anixeity and hinder the ability to move forward. The Limitation Act provides a sense of finality. Once the limitation period for the particular cause of action expires, Defendant can have a peace of mind knowing they are no longer vulnerable to legal challenges related to that specific event. This promotes closure and allows all parties involved to focus on the present and future to maintain certainity.

3. ENSURING JUDICIAL EFFICIENCY:- The judicial system functions best when it can work within a predictable framework. Without limitation periods, courts court’s would be inundated and a never ending backlog of cases will be stemming from events that transpired years, even decades ago. This could create a significant strain on judicial resources and ultimately delay access for those with legitimate claims. The Act helps to streamline the legal process by preventing outdated lawsuits from messing up the court system. It allows judges to focus on resolving disputes where the evidence is readily available and a fair Judgement can be reached.

4. BALANCING FINALITY & FLEXIBILITY:- The Limitation Act is not entirely rigid. The law recognizes situations where strict adherence to time limits could create an injustice. For example, the limitation period might be paused for certain individuals who lack the capacity to pursue legal action themselves, such as minors or those with mental incapacity. Additionally, acknowledging a claim in writing by the Defendant can sometimes restart the limitation clock. These exceptions ensure that Act serves the cause of justice without creating undue hardship for those with legitimate claims & reasons.

In conclusion, the time limits in the Limitation Act plays a vital role in fostering a fair and efficient, and ultimately just legal system. By encouraging prompt litigation while the evidence is strong promoting finality of defendants, ensuring judicial efficiency, the limitation Act helps to maintain a healthy balance within the court system.

BASIC PRINCIPLES OF THE LIMITATION ACT

The core Principles of the Limitation Act establishes a framework for legal proceedings in India dictating time limits for filing various lawsuits. They strike a balance though these time limits seemingly restrictive, are underpinned by crucial principles that ensure a fair, efficient, and ultimately just legal system. Let’s delve deeper into these Principles.

1. RIGHT V/S REMEDY :- The Limitation Act distinguishes between a legal right and the remedy to enforce it. Even if the deadline has been surpassed to file a lawsuit (the remedy is barred by limitation) the underlying legal right itself might still exist. For instance, if someone breaches a Contract, a right to compensation might remain even if the aggrieved person can’t sue to exceeding time limitation as prescribed by the Act. However there’s an important exception for property rights under Section 27. Here, exceeding the limitation period can extinguish the right itself, meaning you lose ownership of the property.

2. BALANCING ACCESS TO JUSTICE AND FINALITY:- The Limitation Act aims to strike a balance between two competition interests. On one hand it’s ensures reasonable access to justice allowing individuals to pursue legal claims. On the other hand, it promotes finality in legal matters. Time limits encourage prompt resolution of disputes while evidences are fresh and the memories are clear. This prevents perpetual litigation that could drag on for both parties involved.

3. EXCEPTIONS & EXTENSIONS :- The Act recognises that in some situations the strict adherence of time limits could create injustice. For instance, the limitation period might be paused for certain individuals who lack the capacity to pursue legal action themselves, such as minors or those with mental incapacity (Section 15). Similarly if the Defendant acknowledges the claim while writing, it can sometimes restart the limitation clock (Section 18). These exceptions ensure that the act serves the cause of justice without creating undue hardship for those with legitimate claims.

4. PUBLIC POLICY:- The Limitation Act is informed by Principles of public policy. Courts are not meant to be logged down by lawsuits based on events that transpired years ago, where the evidence might be unreliable or difficult to obtain. Time limits encourage responsible and timely pursuit of legal claims, promoting an efficient use of judicial resources.

These core Principles, have a deeper appreciation for the nuanced role of the limitation Act plays in shaping the Indian legal landscape. It fosters a system that balances access to justice with the need for finality, ensuring a fair and efficient of the legal disputes.

KEY SECTIONS OF THE LIMITATION ACT

The Limitation Act establishes a framework for the legal proceedings in India by outlining specific time limits for filing various lawsuits. These time limits known as Limitation periods are crucial for both plaintiffs and defendants. Some key sections that govern how these time limits are calculated and applied:-

SECTION 3:- BAR OF LIMITATION & INSTITUTING A SUIT (THE HEART OF

THE ACT )

The core provision lays the foundation for the entire Act. It states that –

(1) With Subject to the provisions increpted in the Sections 4 to 24 of this Act,every suit instituted, appeal preferred, and application made after the stipulated time or reasonable time frame alloted, then the suit instituted, the appeal preferred and the application made will be void.

(2) For the purpose of this Act—

A suit is instituted ---

• in an ordinary course, when the plaintiff is presented to the proper officer

• in case of a pauper ( a person who is not financially stable to institutionalized his lawsuit), when the application for leave to sue as a pauper is made; and

• in the case of a claim against a company, which is being wounded up by the court, when Claimant first seeks his claim to the official liquidator;

In simpler terms if a party miss the deadline to file a lawsuit the court won’t even consider it on its merits, Hence this section is considered as the heart of the Act, and also provide the essentials scenarios to institutionalize a lawsuit under the Act.

SECTIONS 14-21 :- NAVIGATING THE TIME MAZE

The major sections that provides baseline time limits that can affect the time calculation of limitation period are discussed as follows:-

● SECTION 14:- EXCLUSION OF TIME :-

The section allows for excluding certain periods from the limitation period calculation. The Section is stated as –

“Exclusion of time of proceeding bona fide claims in court without jurisdiction –

(1) On computing the time period of limitation for any lawsuit the time during which the Plaintiff has been prosecuting with in any another civil case, whether in a court of first instance or of the appeal or revision, against the Defendant shall be excluded, where the proceeding relates to the same matter in issue and is prosecuted in Good Faith in a court which, from defect of Jurisdiction or other cause of a like nature, is unable to entertain it.

(2) Nothing contained in rule 2 of Order XXIII of the Code of Civil Procedure, 1908, the provisions of sub-section (1) shall apply In relation to a fresh lawsuit instituted on permission granted by the court under Realm of that Order, where such permission is granted on the ground that the First suit must fail by reason of a defect in the proceedings of the court of any other for the like nature of the suit.

For instance, if a party initially filled it’s case in the wrong court and then had to re-file it in the correct court the time spent pursuing the case in the wrong court can be excluded from the limitation period.

● SECTION 15 :- DISABILITY & EXTENSION:-

The Section recognises that certain individuals might have difficulty pursuing legal action on time due to disabilities like minority or mental illness. The Section has been stated as follows –

Exclusion of time in certain other cases

(1) In computing the time period of limitation for any lawsuit or application for the execution of a decree, the execution of which has been granted a stay order, the time of continuance of the stay order, the day on which it was Issued or made, and the day on which it was withdrawn, shall be excluded.

(2) In computing the time period of limitation for any lawsuit of which the notice has been given, or for which the previous consent or sanction of the Government or any other Authority is required, in accordance with the requirements of any law for the time being in force, the time period of such notice, the time required for obtaining such consent or sanction shall be excluded.

(3) In computing the time period of limitation for any suit or application for execution of decree by any receiver of interim receiver appointed in proceedings for the Adjudication of a person as an insolvent (pauper) or by any liquidator or provisional liquidator appointment in proceedings for the winding up of a company, the period beginning with the date of institutionalisation of any such lawsuit and ending with the expiry of three months from the date of appointment of such receiver or liquidator, shall be excluded.

(4) In computing the time period of limitation for a lawsuit for possession by a purchaser at a Sale in execution of his performance, the time during which a proceeding to set aside the Sale has been prosecuted shall be excluded.

(5) In computing the time period of limitation for any lawsuit the time during which the Defendant was not present in India and from the territories outside India that under the administration of the Central Government, shall be excluded.

(6) In computing the time period of limitation, where a suit has been filed or an application for Stay order has been made, the time during which there was a stay order against the filing of Suit, or an application shall be excluded. In such cases the limitation period can be extended until the disability for the same has been removed.

Therefore the Section delves into the scenarios and events where the time limit for institutionalizing a law suit, an appeal to be preferred and an application to be made shall be excluded in accordance with as the exceptions to the Section 3 of this Act.

● SECTION 17 :- EXTENSION FOR FRAUD OR MISTAKE:-

If a Defendant who deliberately, concealed an information or there was a genuine mistake or flaw that prevented the aggrieved party’ from institutionalizing a law suit for the claim on a reasonable time, this section allows the court to extend the limitation period. The Section has been improvised in the act as –

● Where, in the case of any lawsuit or an application made for which a period of limitation is prescribed by this Act,--

(a) The suit of application is based upon the fraud of the defendant or respondent or his agent; or

(b) The knowledge of the right or title on which the suit or application is founded has been adopted by the fraud of any such person as aforesaid; or the suit or an application is for relief from the consequences of a mistake or a flaw ; or

(c) Where any document necessary to establish the right of the plaintiff or applicant has been fraudulently concealed from him;

● (b). Where a judgment-debtor has, by fraud or coercion, prevented the execution of a decree or order within the period of limitation period prescribed, the court may, on the application of the Judgment-creditor made an after the expiry of the alloted time period extend the period for execution of the decree or order.

This section provisionally allows a person who is deliberately concealed by the Defendants for not filing the lawsuit on time; however, the court may look into the same for consideration and may remove the limitation clauses.

Sections 14-24 delve into various other situations that can impact the calculation of the limitation of the time period. Understanding these nuances can be critical at times whether the person has a geniune reason , However the Limitation Act is a complex piece of legislation and it’s not exhaustive to be interpreted.

LANDMARK CASE LAWS ON BASIC PRINCIPLES OF THE ACT

The fundamental principles of the limitation Act enshrines in various landmark law suits and appeals by the claimants regarding execution of an order or a decree, exclusion or extension of time period limitation for specific course to be performed or incarnated for liquidating the loss to the other party. Here are few of the landmark cases under the basic principles of the Limitation Act:-

●BOMBAY DYEING & MFG. CO. LTD. V. STATE OF BOMBAY (AIR 1958 SC 328):-[ DISTINCTION BETWEEN RIGHT & REMEDY]

The Petitioner in this case challenged the Bombay Labour Welfare Fund Act ( 1953), that on arguing it infriged their fundamental right of the Defendants. That were Article 19(1)(f) & Article 31(2). Therefore, the apex court holded the validity of the Welfare Act and distinguished between the right itself (to carry on business) and the remedy for enforcing that right, The court stated Even though, the Act imposed a financial burden on the companies it didn’t distinguished the right to conduct the business. This case establishes a crucial principle in Indian Limitation Act that restricts the remedy, not the right itself. It clarifies the scope of the State’s police power to regulate businesses for the legitimate social objectives, such as labour welfare.

● A.S. KRISHNAPPA CHETTIAR V. NAHIAPPA CHETTIAR , (1964):- SECTION 15(1)

In this case the creditors were trying to collect debts from an insolvent debtor. The court-approved the time period to distribute assets was extended, recovering the creditors’ right to collect. A letter from the debtor further extended the limitation period for debt recovery. This case clarifies how extensions in insolvency proceedings can impact debt collection timelines.

● RAJMATA V.R. SCINDIA V/S. State Of Uttar Pradesh (1984):-

This case landmarks that the Limitation Act does not apply to the petitions filed under Articles 226 and 32 of the Indian Constitution, which deals with fundamental rights enforcement. This 1984 case involved the former Maharaja’s challenge to the government claiming the part of her palace. While she claimed a property right violation, the Supreme Court ruled the requisition, for a public purpose part and with alternate accommodation offered, which was a reasonable restriction on her right and did not violate the Constitutional Provisions as well.

● RAMLAL V. REWA COALFIELDS LTD (1962) :-

In this case the apex dealt with the issue of whether the delay in filing an appeal could be condoned under Section 5 of the Limitation Act, 1908 ?. Ramlal's suit for recovery of salary arrears was initially ordered in his favor, but the Madras High Court dismissed it as time-barred. Upon appeal, the Supreme Court upheld the High Court's decision, emphasizing that "sufficient cause" for condonation of delay must be compelling and demonstrate the due diligence. The court found that the plaintiff’s reasons for the delay were unconvincing, thereby reinforcing the importance of adhering to reasonable and stipulated timelines in legal proceedings.

CONCLUSION

The Limitation Act plays a critical role in shaping the Indian Judiciary System. By establishing time limits for filing lawsuits, it fosters a system that balances several important objectives: ensuring access to justice, promoting finality, and preserving evidence. While the Act emphasizes adherence to deadlines, it also acknowledges situations where strict application might be unfair. Understanding the Act’s basic principles and how they’ve been interpreted by courts empowers individuals to navigate the legal system more effectively.

REFRENCES :-

● India Code https://www.indiacode.nic.in › …PDF