A Brief Note on ‘Computation of Period of Limitation’

The Limitation Act, 1963, is a comprehensive statute that prescribes the time limits within which legal actions must be initiated. It ensures legal certainty and prevents the indefinite threat of litigation, thus providing clarity in legal matters.

Introduction

The term “limitation” refers to the legal restriction on the period within which a lawsuit or legal action can be initiated. The Limitation Act serves to curtail the period within which one can seek redress from the courts, ensuring that legal matters are addressed within a reasonable time frame. This helps maintain the efficacy and fairness of the legal system.

Functions and Features of the Limitation Act

1. Preventing Delay: It ensures that cases are brought to court promptly, preserving evidence and the reliability of witnesses.
2. Legal Certainty: By prescribing a clear time frame for initiating legal actions, it promotes predictability in the legal process.
3. Reducing Litigation: Limiting the period for filing suits reduces the volume of litigation, easing the burden on courts.

The Limitation Act bars legal actions if they are not initiated within the prescribed time frame, but it does not affect the substantive rights of parties; it only bars the remedy.

Starting Point of Limitation Period

The limitation period begins from the date when the cause of action arises. This is when the right to sue accrues, and the computation depends on the nature of the legal action:

• Contracts: The limitation period begins from the date of the breach.
• Tort cases: It begins from the date of the wrongful act.
• Property disputes: It starts from the date of dispossession or when the right to possession accrues.

Computation of Limitation Period

• General Rule: The limitation period is computed excluding the day on which the cause of action arose.
• If the last day of filing falls on a day when the court is closed, the suit can be filed on the next working day.

Extension of Limitation Period (Section 5)

The court may condone the delay in filing an appeal or application if a sufficient cause is shown. This is referred to as “condonation of delay.”

Sufficient Cause: The appellant must provide a reasonable explanation for the delay. Factors such as illness, absence from the country, or other uncontrollable circumstances may be valid reasons.

Exclusions in Limitation Period (Section 12)

• The time taken to obtain a copy of the judgment, decree, or order appealed from is excluded from the computation of the limitation period.
• If a plaintiff was prevented from filing the suit due to fraud or force by the defendant, that time is also excluded.

Special Provisions

• For legal disabilities (such as minority, insanity, or idiocy), the limitation period begins only after the disability ceases.
• In cases where the right to sue arises after a person’s death, the limitation period is computed from the date of death.

Pardon of Delay

“Pardon of delay” refers to relief granted by the court when a valid reason for not filing an appeal within the prescribed time is shown. Section 5 empowers courts to condone delays when sufficient cause is demonstrated.

Case Law: In Balwant Singh (Dead) vs Jagdish Singh & Ors (2006), the Supreme Court held that the applicant must cite reasons for the delay. A reasonable cause must be shown to the satisfaction of the court.

The Bombay High Court in Ornate Traders Private Limited vs The Income Tax Officer on 29 August,(2008) stated that delays may be accepted if the cause shown is reasonable and bona fide, but negligence or inadequate explanation can result in rejection.

Fraud and Concealment (Section 17)

In cases involving fraud or concealment, the limitation period starts not from the cause of action but when the fraud is discovered, or could have been discovered with due diligence.

Case Law: Laxmi Rattan Engineering Works v. State of U.P. (1957) – The Court held that the limitation period begins only from the date the fraud is discovered.

Exclusion of Time Spent in Wrong Forum (Section 14)

Under Section 14, if time has been spent in a wrong forum, such as a court with no jurisdiction, that time is excluded from the limitation period.

Conclusion

The Limitation Act, 1963, plays a crucial role in ensuring that legal actions are initiated within a reasonable time frame. It maintains judicial efficiency, fairness, and prevents stale claims. The computation of the period of limitation ensures a balance between the interests of plaintiffs and defendants, ensuring that legal matters are not perpetually contested.