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Salient Features of Limitation Act, 1963

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 22-Sep-2023

Introduction

  • The Law of Limitation is a Procedural Law.
  • It is Lex Fori (the law of the court in which a proceeding is brought) and is founded on Public Policy.
  • The word limitation in its literal terms means a restriction or the rule or circumstances which are limited. The law of limitation is prescribed as the time limit given for different suits to the aggrieved person within which they can approach the court for redress or justice.
  • The Law of Limitation ensures that the parties do not resort to dilatory tactics and avail the remedy promptly.

The structure of the Limitation Act is as follows

  • The Limitation Act came into force on 1st January 1964.
  • It extends to the whole of India.
  • It contains a total of 5 parts.
  • There are in total 32 sections in the act.
  • It contains 137 Articles in the act which provide for periods of limitation.

Articles - 137 in total contains three divisionsnamely:

  • First Division - Suits (Article 1-113)
  • Second Division - Appeals (Articles 114-117)
  • Third Division - Applications (Articles 118-137).

Exhaustive Law

The Limitation Act is exhaustive with respect to all matters expressly dealt with in it. It cannot be extended by analogy. Ordinarily, the act applies only to civil cases except in the matter expressly and specifically provided for that purpose.

Adjective Law

  • The Limitation Act is majorly an adjective law, but it provides for both the substantial and procedural features of any statute.
  • In the case of A.S. Krishnappa Chettair v. Nahiappa Chettiar (1964), it was held by Supreme Court of India that the ‘Limitation Act’ is basically a piece of adjective or procedural law and not substantive law.

Prospective as well as a retrospective effect

  • Section 31 of the ‘Limitation Act’ provides for the retrospective and prospective effect of the act.
  • The Supreme Court in Thirumalai Chemicals Ltd v. Union of India (2011) observed that statutes of limitation are retrospective so far as they apply to all legal proceedings brought after their operations for enforcing causes of action accrued earlier.

Purpose of the Limitation Act

  • Interest Republicae ut sit finis litium-In the interest of society as a whole, there should be an end to litigation.
  • Vigilantibus non dormientibus jura subveniunt - Law will assist those who are vigilant with their rights and not those who sleep there upon. In simpler words, the law will not help those who sleep on their rights.

Period of Limitation

  • The law of limitation specifies the statutory time frame within which a person may initiate a legal proceeding, or a legal action can be brought.
  • According to Section 2 (j) of the Limitation Act, 1963, ‘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 this Act.
  • If a suit is filed after the expiry of the time prescribed it will be barred by the limitation.
  • It means that a suit brought before the court after the expiry of the time within which a legal proceeding should have been initiated will be restricted.

The starting point of limitation

  • The time from which the limitation begins depends on the facts and circumstances of the case.
  • It usually starts from the date once the summons or notice is served, or the date on that the decree or judgment is passed, or the date on that the event that forms the idea of the suit takes place.
  • The Supreme Court in Trustee’s Port Bombay v. The Premier Automobile (1971) held that the starting point of limitation is the accrual of the cause of action.

Limitation Bars Remedy

  • Section 3 lays down the general rule that if any suit, appeal or application is brought before the court after the expiry of the prescribed time then the court shall dismiss such suit, appeal or application as time barred.
  • The law of limitation only bars the judicial remedy and does not extinguish the right. In other words, the statute of limitation prescribes only the period within which legal proceedings must be initiated.
  • In the case of Punjab National Bank and Ors v. Surendra Prasad Sinha (1992) the Supreme Court held that the rules of limitation are not meant to destroy the rights of the parties. Section 3 only bars the remedy but does not destroy the right which the remedy relates to.

Extinguishment of Right

  • The 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 another’s land for a long time can claim a legal title over it.
  • Bombay Dyeing and Manufacturing Company v. the State of Bombay (1957): The Supreme Court held that the limitation bars the remedy and does not extinguish the right. Thus, the lapse of time does not extinguish the person’s right.

Condonation of Delay

  • ‘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.

Sufficient Cause

  • ‘Sufficient cause’ means there should be adequate reasons or reasonable grounds for the court to believe the applicant was prevented from proceeding with the application in a Court of law.

Period of Limitation-When Court is Closed

  • 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.

Limitation act does not apply to writs

  • The Limitation act does not apply to the writs because it is not a suit, not an application or a petition.
  • In the case of Rajmata V.R. Scindia v. State of Uttar Pradesh (1984), it was held by the Supreme Court that the period of limitation prescribed by ‘Limitation Act’ does not strictly apply to application under Article 226 & 32 of the Constitution of India.