Note on ‘Salient Features of the Limitation Act, 1963’

1️⃣ Introduction

The Limitation Act, 1963 is a procedural law that prescribes the time limit within which a person must approach the court to seek legal remedies. It aims to prevent undue delay in the filing of lawsuits and to ensure the prompt settlement of disputes. If a party fails to initiate legal action within the prescribed time, their right to file a suit, appeal, or application is barred. The rationale behind the Limitation Act is encapsulated in the Latin maxims:

1. “Interest Reipublicae Ut Sit Finis Litium” – It is in the public interest that litigation must come to an end.
2. “Vigilantibus Non Dormientibus Jura Subveniunt” – The law assists those who are vigilant and not those who sleep on their rights.

The Limitation Act, 1963, repealed the Limitation Act of 1908 and aimed to bring clarity, uniformity, and efficiency in the application of the law on limitations.

2️⃣ Objectives of the Limitation Act

The primary objectives of the Limitation Act, 1963, are as follows:

1. Promote Diligence: Encourages people to approach the court promptly to claim their legal rights.
2. Prevent Unending Disputes: It puts an end to old claims that are difficult to prove due to the fading of evidence and loss of memory.
3. Ensure Certainty and Finality: It establishes a deadline for legal proceedings, ensuring that litigation does not remain pending indefinitely.
4. Protect Defendants from Perpetual Liability: Defendants are not exposed to endless claims after the expiration of the limitation period.

3️⃣ Salient Features of the Limitation Act, 1963

1️⃣ Applicability and Scope

• Civil Cases Only: The Act is applicable only to civil cases and not to criminal cases unless specifically provided.
• Not Exhaustive: The Act does not cover every possible scenario, and special or local laws may override it.
• Universal Application: After the Jammu and Kashmir Reorganisation Act, 2019, the Limitation Act now applies uniformly across India, including Jammu & Kashmir.

2️⃣ Limitation Period

• The Act specifies the time limit for filing suits, appeals, and applications. This period varies for different legal actions and is mentioned in the Schedule of the Act.
• Starting Point of Limitation: The limitation period starts from the day when the cause of action arises or when the right to file a suit accrues.
• Example: If a decree is passed on 1st January 2024 and the limitation period to file an appeal is 90 days, the appeal must be filed by 31st March 2024.

3️⃣ Bar on Legal Action (Section 3)

• If a suit, appeal, or application is filed after the expiry of the limitation period, it is barred and must be dismissed.
• Duty of the Court: Even if the opposing party does not raise the defense of limitation, the court must dismiss a time-barred case suo moto.
• Landmark Case:
  • Punjab National Bank v. Surendra Prasad Sinha (1992) – It was held that the rules of limitation are not intended to destroy rights but prevent the remedy.

4️⃣ Computation of Limitation Period

• Section 12: The day from which the limitation begins is excluded.
• Section 4: If the last day of the limitation period is a holiday or the court is closed, the limitation extends to the next working day.
• Example: If the deadline for filing an appeal is 31st December and the court is closed, the appeal can be filed on the next working day.

5️⃣ Legal Disability (Section 6)

• If the plaintiff is a minor, insane, or mentally disabled at the time when the cause of action accrues, the limitation period starts only after the disability ceases.
• Case Law:
  • Rajjo Bibi v. Chhotey Lal (1995) – It was held that the time limit for claiming possession of property starts when the legal representative becomes capable of filing a suit.

6️⃣ Acknowledgement of Liability (Section 18)

• If there is an acknowledgment of debt or liability before the expiry of the limitation period, a fresh limitation period begins from the date of acknowledgment.
• Example: If a debtor acknowledges debt in writing on 1st January 2024, a new limitation period starts from that date.
• Case Law:
  • Laxmi Pat Surana v. Union Bank of India (2021) – The Supreme Court held that acknowledgment of debt restarts the limitation period for initiating insolvency proceedings under IBC.

7️⃣ Exclusion of Time (Sections 12–15)

• Time to Obtain Copy of Decree: The time required to obtain certified copies of decrees, orders, or awards is excluded from the limitation period.
• Time Spent in Court Without Jurisdiction: Time spent pursuing a case in a court without jurisdiction is excluded.
• Government Proceedings: Time taken to obtain necessary government approval is excluded from the limitation period.

8️⃣ Condonation of Delay (Section 5)

• If there is a sufficient cause for not filing a case within the prescribed time, the delay can be condoned.
• Case Law:
  • Collector Land Acquisition v. Mst. Katiji (1987) – The Supreme Court held that courts should adopt a liberal approach when dealing with condonation of delay.

9️⃣ Adverse Possession (Section 27)

• If a person remains in possession of immovable property for 12 years without any challenge from the owner, they can claim ownership.
• Case Law:
  • Kantilal Chunilal Sheth v. Krushnalal Chunilal Sheth (2024) – The Court held that adverse possession must be established by showing the starting date of possession.

🔟 Effect of Fraud, Mistake, or Concealment (Section 17)

• If a suit is based on fraud, mistake, or concealment, the limitation period begins from the date of discovery of fraud or mistake.
• Case Law:
  • Balakrishna Savalram Waghmare v. Dhyaneshwar Maharaj (1959) – The Supreme Court held that a “continuing wrong” causes a fresh limitation period to begin every day.