Limitation Bars Remedy, But Does Not Extinguish the Right

Introduction 

• The law of limitation defines the period during which legal proceedings must be initiated. Filing a suit after this period results in it being barred by limitation, meaning such a suit cannot proceed in court. 

Objectives 

• The Law of Limitation sets specific timeframes for enforcing rights in a court of law. 
• These timeframes for various suits are detailed in the Act's schedule. 
• The primary objective of this Act is to prevent prolonged litigation and ensure the swift resolution of cases, leading to more effective legal proceedings. 

Nature of Limitation 

• Purpose: The Limitation Act, 1963, sets out time limits (limitations periods) within which legal proceedings must be initiated for various types of claims. 
• Statutory Limits: These limits vary depending on the nature of the claim (e.g., contracts, torts, property disputes) and are intended to ensure prompt resolution of disputes and prevent stale claims. 

Limitation Bars Remedy 

• Section 3 of the Limitation Act states that any suit, appeal, or application filed after the prescribed time must be dismissed by the court as time barred. 
• The law of limitation restricts the judicial remedy but does not extinguish the underlying right. 
• Essentially, the statute of limitation defines the timeframe for initiating legal proceedings, not for setting up a defense. 
• Therefore, the original right to file a suit remains intact. 

Application to Courts 

• Section 3(c): An application to a High Court by notice of motion is considered made when it is presented to the appropriate court officer. 
• If the prescribed period for any application expires on the day when the court is closed, it may be filed on the next day the court is open, in accordance with Section 4. 

Expiry Period of Limitation When Court is closed 

• Section 4 of the Limitation Act stipulates that if the limitation period for filing a suit, appeal, or application expires on a day when the court is closed, it may be filed on the next day the court is open. 

Extension of Prescribed Period 

• Section 5 allows for the extension of the prescribed period in specific cases. 
• If the appellant or applicant can demonstrate to the Court that they had sufficient cause for not filing the appeal or application within the prescribed time, the court may admit it even after the deadline has passed. 

Extinguishment of Right 

• Section 27 of the Limitation Act states that when the prescribed period for initiating a suit to claim possession of property expires, the person's right to that property is extinguished. However, authorities have rightly held that this section does not apply to property incapable of possession, such as debts, where the lapse of time does not extinguish the person's right to the property. 

Case Laws 

• Punjab National Bank and Ors v. Surendra Prasad Sinha (1992): 
  • In the case, the Supreme Court clarified that statutory limitations serve to prevent the enforcement of legal remedies after a set time, without nullifying the underlying rights. Section 3 of the Limitation Act bars remedies but preserves the enforceability of rights, emphasizing that while access to legal recourse may expire, the fundamental entitlements endure beyond the specified time frame. 
• Bombay Dyeing and Manufacturing Company v. the State of Bombay (1957): 
  • In this case, the Supreme Court established a crucial legal principle that the statute of limitations acts as a bar to legal remedies rather than extinguishing underlying rights. This means that while the passage of time may prevent someone from seeking a remedy through legal action, it does not nullify or erase their fundamental legal entitlements or claims. 

Conclusion 

The Limitation Act, 1963, operates to limit the temporal scope within which legal actions can be initiated, preserving substantive rights while barring legal remedies once the prescribed period has expired. Understanding the distinction between the right and the remedy under the Act is crucial for both legal practitioners and individuals involved in potential legal disputes.