CH-18 The Limitation Act, 1963 – An Overview

E4-E5 Civil (Technical) Rev date: 20-04-11

BSNL India For Internal Circulation Only Page: 1

Chapter-18

THE LIMITATION ACT 1963 –

AN OVERVIEW

Shobhit Kumar, DGM (BS-C), 9412739212 (M)

E-mail ID: [email protected]



The Limitation Act, 1963 – An Overview

• Applicable from 1.1.1964

• Applicable to whole of India except J&K.

1.0 Limitation: - Limitation means, the time at the end of which, no action at law

or suit can be maintained.

• It is a restriction of the right of action to certain periods of time, after

the accruing of cause of action, beyond which, except in certain

specified cases, it will not be allowed.

• Legal remedy can be exercised only up to certain period and not

subsequently.

2.0 Concerned Relevant Acts with our Contract

(a) Arbitration Act 1940, effective up to 24-01-1996

(b) Indian Contract Act 1872

(c) Arbitration and conciliation Act, 1996, effective from 25.01.1996

(d) Effective: - Effective means commencement of Arbitration Proceedings,

i.e. the date on which the sole – Arbitration is appointed by Appointing

Authority under agreement clause of contract.



3.0 Articles of Limitation Act for our contract, applicable for initiating

Arbitration Proceedings:

Article No. Description of Suits Period of Time from which

Limitation period being to run

27. For compensation for Three years when the time

breach of a promise specified arrives.

to do anything at a

specified time.

54. For specific performance Three years The date fixed for

of a contract. performance, or, if

no such date is fixed

when the plaintiff has

noticed that

performance is refused.

55. For compensation for the Three years When the contract

breach of any contract, is broken

express or implied not

herein specifically provided for.

137. Any other application for Three Years when the right to

which no period of limitation apply accrues.

is provided elsewhere.

4.0 Protection of Arbitration Clause Provisions against Limitation Period of 3

Years.

•••• Stipulation of Time Periods as mentioned in Arbitration Agreement

(Arbitration clause) will hold good till intervened by the court

•••• Section 37(4) of Arbitration Act 1940

•••• Section 43(3) of A.C. Act 1996

•••• As per above section, court in case of hardship or as the justice of the

case, can extend the time beyond Agreement. Maximum up to 3 years.



5.0 Enforcement of Arbitration Award

As per section 36 of A.C. Act 1996, after expiry of three months from the date

of receipt of Arbitration Award by apposite party (By Respondent), the Award

will become Decree of the court

6.0 Setting Aside Arbitral Award

Under Section 34(3) of A.C. Act – 1996, application to set aside the award

should be made within three months from the date on which the party making

that application had received the Arbitration Award or, if a request had been

made under section 33 (correction & interpretation of Award), from the date on

which that request has been disposed of by the Arbitrator.

7.0 Correction and Interpretation of Award, Additional Award

Within 30 days from date of receipt of Arbitration award, (section -33 of A&C

Act 1996)

(i) A party, with notice to other party, may request Arbitrator to correct

any computation, clerical or typographical error.

(ii) A party, with notice to other party, may request Arbitrator to give an

interpretation of a specific point.

8.0 Important Sections of L.A. 1963

8.1 Section 3 – Bar of Limitation:-

Every suit instituted, appeal, and application made after the prescribed

period, shall be dismissed.

8.2 Section 4 – when court is closed:-

When prescribed period expires on a day when court is closed,

application can be made on the date when the court reopens.

8.3 Section 5 – extension of Prescribed Period in Certain Cases:-

Prescribed Period can be extended if applicant satisfies the court with

sufficient cause

Sufficient Cause:-

- Illness

- Bona-fide mistake

- Wrong proceedings

- Taken in good faith

- Proceedings in wrong court through bona-fide mistake

- Ignorance of facts



- Mistaken advice of layer

- Bona-fide mistake in calculation

Insufficient Grounds

- Ignorance of Law

- Poverty

- Negligence of pleader or clerk

8.4 Section – 6 – Legal Disability

If a person is having legal disability like Minor, Insane or Idiot,

prescribed period is to be reckoned after the disability is ceased (over).

8.5 Section – 9 –Continuous running of time

Once time has began to run, no subsequent disability to institute a suit

or make an application stop it.

Means once time has began to run, no subsequent disability will stop it.

e.g. on the date from which prescribed period is to be reckoned, a

person was OK, time will start to run & if subsequently he becomes

legally disabled, time will not stop.

8.6 Section 12 Exclusion of time in Legal Proceedings

(i) The day from which such period is to be reckoned, shall be

excluded.

(ii) The time requisite for obtaining a copy of judgment shall be

excluded.

8.7 Section 16–Effect of death on or before the accrual of the right to

sue

The limitation period shall be computed from the day when there is a

legal representative of deceased capable to sue.

8.8 Section -18 Effect of Acknowledgment in Writing

Before expiry of prescribed limitation period, if an acknowledgment of

liability has been made in writing signed by the party against whom

such property or right has been claimed, a fresh period of limitation

shall be computed from the date of Acknowledgement. Time is reset a

zero from the date of Acknowledgment. e.g. Post dated cheque is an

acknowledgement.



9.0 THE SCHEDULE

PERIODS OF LIMITATION

[Section 2 (i) and 3]

FIRST DIVISION – SUITS

Article

No.

Description of Suits Period

of

Limitat

ion

Time from which

period deigns to run

18. For the price of work done by the

plaintiff for the defendant at his

request, where no time has been

fixed for payment

Three

Years

When the work is done

27. For compensation for breach of a

promise to do anything at a

specified time, or upon the

happening of a specified

contingency

Three

Years

When the time

specified arrives or the

contingency happens

54. For specific performance of a

contract

Three

Years

The date fixed the

performance, or, if no

such date is fixed,

when the plaintiff has

noticed that

performance is refused.

68. For specific movable property lost,

or require by theft, or dishonest

misappropriation or conversion.

Three

years

When the person

having the right to the

possession of the

property first learn in

whose possession it is.

80. For compensation for wrongful

seizure of movable property under

legal process

One

Year

The date of the seizure

100. To alter or set aside any decision or

order of a civil court in any

proceeding other than a suit or any

act or order of an officer of

government in his official capacity

One

Year

The date of the final

decision or order by the

court or the date of the

act or order of the

officer as the case may

be.

112. Any suit (except a suit before the

Supreme Court in the exercise of its

Thirty

Years

When the period of

limitation would begin



original jurisdiction) by or on

behalf of the Central Government

or any state Government, including

the Government of the State of

Jammu & Kashmir

to run under this Act

against a like suit by a

private person.

113. Any suit for which no period of

limitation is provided elsewhere in

this Schedule

Three

years

When the right to sue

accrues.

137. Any other application for which no

period of limitation is provided

elsewhere in this division

Three

Years

When the right to apply

accrues.

Questions

1. In case of hardship, what is maximum limitation period which can be

extended by the court for invoking Arbitration?

2. What are the provisions of section 4 of Limitation Act?

3. What are the provisions of section 5 of Limitation Act?

4. What do you mean by Legal disability in respect of section 6 of

Limitation Act?

5. What do you mean by continuous running of time as per section 9 of

Limitation Act?

6. What do you mean by Exclusion of time in legal proceedings in the light

of section 12 of Limitation Act?

7. What will be the effect of death on or before the accrual of the right to

sue?

8. What is the limitation period to sue a minor legal representation of

deceased?

9. What is the limitation period for any suit by central or state government

to file in the court?

10. What is the limitation period for which no period of limitation is provided

in the schedule of period of Limitation of Limitation Act?

Documents

CH-18 The Limitation Act, 1963 – An Overview