8.Effect of limitation

Effect of limitation

What is the Law of Limitation?

The Limitation Act, 1963 sets a fixed time frame within which a person must approach the court for redressal of their grievance. This period depends on the nature of the case—contractual disputes, recovery of debts, property matters, or criminal appeals each have different limitation periods.

For example:

  • 3 years for filing a suit based on a breach of contract
  • 12 years for filing a suit related to immovable property
  • 30 days to 90 days for filing an appeal, depending on the court level

Once this period expires, the right to sue becomes unenforceable in a court of law.


Effect of Expiry of Limitation Period

1. Loss of Legal Remedy

The most significant effect of limitation is the loss of legal remedy, not the right itself. This means a person may still hold a moral or natural right, but cannot enforce it through courts.

2. Dismissal of Suit or Application

Courts usually dismiss suits or applications filed after the limitation period. The court treats them as time-barred, even if the claim itself is genuine.

3. No Relief Unless Sufficient Cause Is Shown

Under Section 5 of the Limitation Act, courts may allow delays in certain cases if the applicant shows “sufficient cause” for not filing within time. However, this provision doesn’t apply to suits—it mostly covers appeals and applications.


Key Questions Answered

Q1: Does the expiry of limitation destroy the right itself?

No. It only destroys the remedy available through court. The right may still exist ethically or socially, but you can’t enforce it through legal means.

Q2: Can the court entertain a suit after the limitation period?

Generally, no. The court will reject it as time-barred unless a special provision applies or the delay can be condoned under Section 5.

Q3: Is there any exception to the law of limitation?

Yes. In cases involving fraud, mistake, or concealment, limitation may be extended. Courts also allow minors and persons with disabilities to file suits after regaining capacity.

Q4: Can parties agree to extend the limitation period?

No. Limitation is a matter of public policy and parties cannot contract out of it.


Judicial View

In Rajendra Singh v. Santa Singh (1973 AIR 2537), the Supreme Court held that laws of limitation are founded on public policy, intended to secure peace, prevent stale claims, and ensure diligent legal conduct.

Similarly, in Popat and Kotecha Property v. State Bank of India Staff Association (2005), the court ruled that once the limitation expires, the court has no power to entertain the suit or extend the period unless explicitly permitted by law.

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