Limitation Period Basics Every Lawyer Should Know

Missing a limitation deadline is one of the most devastating mistakes in legal practice. No matter how meritorious your case, a time-barred claim is dead on arrival. This guide provides a practical reference to help you navigate the Limitation Act, 1963 with confidence.

Understanding the Limitation Act, 1963

The Limitation Act, 1963 prescribes the time limits within which legal proceedings must be initiated. Its purpose is twofold:

1. Protect defendants from stale claims where evidence may have deteriorated
2. Encourage diligence in pursuing legal rights

The Act contains 137 articles in the Schedule, each prescribing limitation periods for different types of suits, appeals, and applications.

Key Principle: Limitation extinguishes the remedy, not the right. The underlying right may still exist, but courts cannot enforce it after limitation expires.

Commonly Used Limitation Periods

Suits (Selected Important Articles)

Article	Description	Period	From When
54	Specific performance of contract	3 years	Date fixed for performance, or if no date fixed, when plaintiff has notice of refusal
55	Compensation for breach of contract	3 years	When contract is broken
58	Declaration and consequential relief	3 years	When right to sue first accrues
62	Recovery of movable property	3 years	When property is wrongfully taken
65	Recovery of immovable property	12 years	When possession becomes adverse
68	Recovery of money due under written contract	3 years	When money becomes due
113	Any suit not provided for	3 years	When right to sue accrues
136	Compensation for torts	1 year	When tort is committed
137	Any application not provided for	3 years	When right to apply accrues

Appeals

Type	Period	From When
Appeal to High Court from decree	90 days	Date of decree
Appeal to Supreme Court	90 days	Date of decree/order
Second appeal	90 days	Date of decree
Appeal from interlocutory order	30 days	Date of order

Revisions and Reviews

Type	Period
Revision petition	90 days
Review application	30 days
Execution of decree	12 years

When Does Limitation Begin to Run?

The starting point of limitation is crucial and varies based on the nature of the claim:

General Rules

1. Breach of contract: From the date of breach
2. Tort claims: From the date the tort is committed
3. Recovery of money: From when payment becomes due
4. Fraud cases: From when fraud is discovered or could have been discovered with reasonable diligence

Special Cases

Continuing wrongs: Each day a fresh cause of action accrues (relevant for nuisance, trespass)

Successive injuries: Separate limitation for each injury

Acknowledgment: Fresh starting point from date of acknowledgment (Section 18)

Computing the Limitation Period

Basic Rules (Sections 12-16)

Section 12 - Exclusion of time for obtaining copies

When computing limitation for an appeal or revision, exclude:

• Time required to obtain a certified copy of the decree/order
• Day on which the judgment was pronounced
• Day on which the copy was ready for delivery

Section 14 - Exclusion of time proceeding in wrong forum

If you bonafide prosecuted civil proceedings in a court without jurisdiction, that time is excluded, provided:

• The proceeding was prosecuted in good faith
• With due diligence
• In a court lacking jurisdiction

Section 15 - Exclusion of time for legal disability

If the plaintiff was a minor, insane, or under legal disability when the right accrued:

• Limitation begins when disability ceases
• Cannot exceed 3 years after disability ends for suits in Schedule Part I

Practical Calculation Example

Judgment pronounced:     15 March 2024
Copy applied:           16 March 2024
Copy ready:             25 March 2024
Copy obtained:          27 March 2024

Limitation period:      90 days

Computation:
- Exclude 15 March (judgment day)
- Exclude 16-25 March (10 days for obtaining copy)
- Start counting from 26 March

90 days from 26 March = 23 June 2024 (last date to file appeal)

Extension and Condonation of Delay (Section 5)

Section 5 provides discretionary power to courts to condone delay in filing appeals and applications (but NOT suits).

Requirements for Condonation

1. Sufficient cause must be shown for the delay
2. Applicant must demonstrate they were prevented from filing on time
3. No negligence or inaction on the part of the applicant

What Courts Consider “Sufficient Cause”

Generally Accepted	Generally Rejected
Serious illness requiring hospitalization	Busy schedule
Natural disasters preventing access	Ignorance of law
Wrong legal advice (in some cases)	Negligence of counsel (unless gross)
Government approval delays (for PSUs)	Financial difficulties
Pending negotiations	Clerical errors

Key Judicial Principles

“The expression ‘sufficient cause’ should receive a liberal construction so as to advance substantial justice, when no negligence or inaction is imputable to a party.” - Collector, Land Acquisition v. Mst. Katiji (1987) 2 SCC 107

However, courts also emphasize:

“Law of limitation is founded on public policy. It is enshrined in the maxim ‘interest reipublicae ut sit finis litium’ - it is for the general welfare that a period be put to litigation.”

Acknowledgment and Fresh Start (Section 18)

An acknowledgment of liability made before limitation expires gives a fresh starting point.

Requirements for Valid Acknowledgment

1. Must be in writing
2. Signed by the acknowledging party or their authorized agent
3. Made before limitation expires
4. Must acknowledge existing jural relationship (debt, liability)
5. Need not promise to pay or quantify the amount

What Constitutes Acknowledgment

Valid Acknowledgment	Not Acknowledgment
”I owe you Rs. 5 lakhs"	"I don’t owe you anything”
Balance sheet showing debt	Offer to pay “without prejudice”
Letter requesting extension for payment	Conditional acknowledgment (“if I owe…”)
Partial payment with intent to acknowledge	Payment made “without admitting liability”

Effect of Acknowledgment

• Fresh limitation period starts from the date of acknowledgment
• Multiple acknowledgments: Each gives a fresh start
• Acknowledgment by one of several joint debtors does not bind others

Practical Checklist for Practitioners

At Client Intake

• Identify the cause of action and when it first arose
• Check applicable article in the Schedule
• Calculate the limitation deadline immediately
• Set multiple calendar reminders (30 days, 15 days, 7 days before)
• Document all dates in the case file

Before Filing

• Verify computation includes all exclusions (Section 12-16)
• Check for any acknowledgments extending limitation
• If filing late, prepare condonation application with affidavit
• Gather evidence supporting “sufficient cause” if needed

For Appeals

• Note judgment date and copy application date
• Track when copy becomes ready
• Calculate limitation from day after copy is ready
• Account for court holidays if limitation expires on a holiday (Section 4)

Documentation to Maintain

1. Timeline chart of all events and dates
2. Copies of all acknowledgments in writing
3. Records of disability if applicable
4. Court holiday calendar for the relevant year
5. Proof of attempts to prosecute in wrong forum (if Section 14 applies)

Common Pitfalls to Avoid

1. Assuming all suits have 3-year limitation - Many have shorter periods (torts: 1 year)

2. Forgetting to exclude copy-obtaining time - Always document when you applied and received copies

3. Relying on oral acknowledgments - Only written, signed acknowledgments count under Section 18

4. Filing in wrong court hoping for Section 14 benefit - Must show “good faith” prosecution

5. Assuming condonation will be granted - Courts increasingly strict about delays

Quick Reference: Critical Periods

1 Year:    Torts, malicious prosecution, defamation
3 Years:   Most contracts, recovery of money, declarations
12 Years:  Recovery of possession of immovable property
30 Days:   Review applications
90 Days:   Most appeals and revisions

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