Introduction

• The law of limitation finds its roots in the maxim Interest Reipublicae Ut Sit Finis Litium which means that in the interest of the state as a whole there should be a limit to litigation and vigilantibus non dormientibus Jura subveniunt which means the law will assist only those who are vigilant with their rights and not those who sleep upon it.
• The Limitation Act, 1963 (Act hereafter) prescribes different periods of limitation for filing of suits, appeals or applications.
• The statute of limitation are statutes of repose because they extinguish stale demands and quiet titles.
• They secure peace by ensuring the security of rights and justice as by lapse of time, evidence may get destroyed.

Object of the Act

• The Law of limitation prescribes a time period within which a right can be enforced in a Court of Law.
  • The time period for various suits has been provided under the schedule of the Act.
• The main purpose of this Act is to prevent litigation from being dragged for a long time and to quickly dispose of cases which leads to effective and easy litigation and disposal of cases.

Period of Limitation

• Section 2(j) of the Act defines the period of limitation and prescribed period.
  • Period of limitation refers to the time period which is prescribed for any suit, appeal or application by the Schedule of the Limitation Act, 1963.
  • The prescribed period is the period of limitation computed in accordance with the provisions of this Act.
• Section 3 of the Act describes the Bar of limitation as subject to the provisions contained in Sections 4 to 24 (inclusive) every suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed although limitation has not been set up as defense.

When Period of Limitation Starts

• The time from which the period of limitation begins depends on the case's subject matter, and a specific starting point of such period is provided extensively by the Schedule in the Act.
• It generally starts from the date when the summons or notice is served, or the date on which the decree or judgment is passed, or the date on which the event that forms the basis of the suit takes place.

Bar of Limitation Under Section 3

Section 3 of the Act provides that any suit, appeal, or application must be made within the limitation period specified in the Limitation Act.

• If any suit, appeal or application is made beyond the prescribed period of limitation, it is the duty of the Court not to proceed with such suits irrespective of the fact whether the plea of limitation has been set up as a defence or not.
• The provisions of Section 3 are mandatory, and the Court can suo motu take note of question of limitation.
• The question whether a suit is barred by limitation should be decided on the facts as they stood on the date of presentation of the plaint. It is a vital section upon which the whole Limitation Act depends for its efficacy.
• The effect of Section 3 is not to deprive the Court of its jurisdiction. Therefore, decision of a Court allowing a suit which had been instituted after the period prescribed is not vitiated for want of jurisdiction. A decree passed in a time barred suit is not a nullity.

Limitation Bars Remedy but doesn't Extinguish Right

• The law of limitation only bars the remedy by way of the suit i.e., if the period of limitation expires, the party entitled to file a suit for the enforcement of a right is debarred from doing so.
  • However, the original right on which the suit was to base is not barred. Thus, limitation only bars the judicial remedy, but it does not extinguish the right.
• For example, where the recovery of a debt has become time barred by the lapse of the prescribed period, the right to the debt is not extinguished.
  • If the debtor, without being aware of the bar of time, pays the debt, he cannot sue the creditor to refund the money to him on the grounds that his claims for the recovery of the debt had become time barred.
• There is one exception to the aforesaid rule contained in Section 27 of the Limitation Act, 1963.
  • It provides that where a person’s right to institute the suit for the possession of any property has become barred by limitation his right to the property itself shall be extinguished.

Extinguishment of Right

• General Rule that the law of limitation only bars the remedy but does not bar the right itself.
• Section 27 is an exception to this rule. It talks about adverse possession. Adverse possession means someone who has possession over another’s land for a long time can claim a legal title over it.
  • In other words, the title of the property will vest with the person who resides in or is in possession of the land or property for a long period.
• If the rightful owner sleeps over his rights, then the rights of the owner will be extinguished, and the possessor of the property will confer a good title over it.
• Section 27 is not limited to physical possession but also includes de jure possession. As per the wordings of this Section, it applies and is limited only to suits for possession of the property.

Doctrine of Sufficient Cause

• Sufficient cause means there should be adequate reasons or reasonable ground for the court to believe the applicant was prevented from proceeding with the application in a Court of Law.
• Section 5 allows the extension of prescribed period in certain cases on sufficient cause being shown for the delay.
  • This is known as doctrine of “sufficient cause” for condonation of delay which is embodied in this section.
  • Condonation of delay means that extension of time given in certain cases provided there is sufficient cause for such delay.
• Section 5 of the Act talks about the extension of the prescribed period in certain cases. It provides that if the appellant or the applicant satisfies the court that he had sufficient cause to not prefer the appeal or application within that period, such appeal or application can be admitted after the prescribed time.
• In State of West Bengal v. Administrator (1972), the Supreme Court held that the extension of time is a matter of concession and can not be claimed by the party as a matter of right.
  • It is difficult and undesirable to precisely define the meaning of sufficient cause. It must be determined by the facts and circumstances of each case. However, a sufficient cause should fulfill the following essentials:
    • It must be a cause which was beyond the control of the party invoking it.
    • He must not be guilty of negligence.
    • His diligence and care must be shown.
    • His intention must be bonafide.

Exception

• Section 5 is not applicable to applications made under any of the provisions of Order XXI of the Code of Civil Procedure, 1908 (states that the decree must be signed by the judge, and then the decree must be entered in the register of decrees and further states that the decree should be dated and authenticated by the judge's signature) and to suits.
• The Court has no power to admit a time barred suit even if there is a sufficient cause for the delay. It applies only to appeals or applications as specified therein.

Plea of limitation: Duty of Court

• The Court is under an obligation to dismiss a suit if it is filed beyond the time prescribed by the Limitation Act. The provisions of Section 3 are mandatory, and the Court will not proceed with the suit if it is barred by time.

Case Laws

• Craft Centre v. Koncherry Coir Factories (1990):
  • It was held by the Kerala High Court that the plaintiff's duty is to convince the Court that his suit is within time.
  • If it is out of time and the plaintiff relies on acknowledgments to save the limitations, he must plead or prove them, if denied.
  • The Court further held that, provision of Section 3 is absolute and mandatory and if a suit is barred by the time, the court is under a duty to dismiss the suit even at the appellate stage though the issue of limitation may not have been raised.
• ICICI Bank Ltd v. Trishla Apparels Pvt Ltd (2015):
  • It was held by Madras High Court that there is no doubt that the court is duty-bound to dismiss the suit in a case it is barred by time even though no such plea has been taken by the opposite party.

Limitation Period When the Court is Closed

Section 4 of the Limitation Act deals with the provision and mentions:

• When a court is closed on a certain day and the period of limitation expires on that day, then any suit, appeal or application shall be taken up to the Court on the day on which it reopens.
  • This means that a party is prevented not by his own fault but because of the Court being closed on that day.
• For instance, if a Court reopens on 1st January and the time for filing the appeal expires on 30th December (the day on which the Court remains closed) then the appeal can be preferred on the 1st of January when the Court reopens.