What Is Limitation Period?
Limitation period refers to the time legally allowed to file a suit or initiate legal action. It ensures that parties bring their disputes to court within a reasonable time. Different types of suits have different limitation periods under the Schedule to the Limitation Act, 1963. If one misses this deadline, the right to sue may be lost.
Statutory Provision: Section 3 of the Limitation Act
Section 3 of the Limitation Act says that any suit, appeal, or application made after the expiry of the prescribed period shall be dismissed, even if limitation is not raised as a defense. Courts must take notice of limitation on their own.
When Can the Limitation Period Be Extended?
The law permits extension of limitation under specific situations. Let’s explore them:
1. Section 5: Extension in Certain Cases
This section allows condonation of delay in filing appeals and applications (but not suits). If the party shows “sufficient cause”, the court may accept a delayed filing.
Example: A person who missed a deadline due to illness or accident may seek relief under Section 5.
Key Points:
- Applies only to appeals or applications.
- No benefit under this section for suits.
- Delay must be explained day by day.
- The court must find the reason satisfactory.
Landmark Case:
Collector, Land Acquisition v. Katiji (1987)
The Supreme Court favored a liberal interpretation of Section 5 to ensure justice is not denied merely due to delay.
2. Section 6: Legal Disability
If the claimant suffers from legal disability—such as minority, insanity, or idiocy—then the limitation period starts after the disability ends.
Example:
If a minor has a right to sue, the limitation clock starts ticking once they turn 18.
3. Section 7: Successive Disabilities
If the person under disability becomes subject to another legal disability before the first one ends, the limitation starts after both disabilities cease.
4. Section 8: Maximum Cap Despite Disability
This section ensures that no suit can be filed beyond three years after disability ends. It prevents misuse by indefinitely delaying action.
5. Section 9: Once Time Starts, It Runs
Once the limitation period begins, it does not stop due to any new disability or incapacity.
6. Section 12: Time Excluded in Legal Proceedings
The time spent in obtaining certified copies of judgments or orders is excluded when computing limitation.
7. Section 14: Exclusion Due to Wrong Forum
If a party files a case in the wrong court with due diligence and good faith, the time spent is excluded from the limitation count.
Example: A case wrongly filed in consumer court instead of civil court.
Case Law:
Roshanlal v. R.B. Mohan Singh (1975)
Time consumed in a wrong forum was allowed to be excluded under Section 14.
8. Section 17: Fraud or Mistake
If the defendant committed fraud or concealed facts, the limitation period starts from the date of discovery of fraud.
9. Section 18: Effect of Acknowledgment in Writing
Now we come to the core concept—acknowledgment.
Effect of Acknowledgment on Limitation
What is Acknowledgment?
Section 18 of the Limitation Act explains that if a person acknowledges a liability in writing before the expiration of the limitation period, a fresh limitation period begins from the date of acknowledgment.
Essential Elements:
- It must be in writing.
- It must be signed by the person acknowledging.
- It must relate to a subsisting liability.
- It must be made before the expiry of the original limitation.
Key Features of Section 18
- It revives a time-barred right if done properly.
- It applies only to valid and existing debts or obligations.
- The acknowledgment must show that the debtor recognizes the liability, even if unwilling to pay immediately.
Illustration:
If A lends ₹1,00,000 to B on 1 Jan 2020, the limitation ends on 1 Jan 2023. But if B writes an email in December 2022 stating, “I know I owe A ₹1,00,000 and will pay soon,” the new limitation starts from that email date.
Important Judgments on Acknowledgment
K. Venkateswara v. T.N. Housing Board (1989)
Acknowledgment must indicate an existing liability. Conditional or ambiguous statements may not count.
Shapoor Freedom Mazda v. Durga Prasad (1962)
The court held that even if the acknowledgment does not promise payment, it can extend limitation if it recognizes the liability.
What Happens Without Acknowledgment?
If no acknowledgment is made and no other exception applies, the suit becomes time-barred. Courts cannot entertain such suits, no matter how genuine the claim.
Difference Between Acknowledgment and Part Payment (Section 19)
Section 19 is related but distinct. If a debtor makes part payment or pays interest before limitation ends, it resets the limitation.
Common Mistakes to Avoid
- Acknowledgment made after limitation has expired will not extend time.
- Verbal acknowledgments don’t work under Section 18.
- Acknowledgment must refer to an existing liability, not a past or settled one.
Practical Tips
- Always seek written acknowledgment before limitation ends.
- Save emails, letters, or SMS as evidence.
- Don’t rely on oral promises.
Why It Matters in Contract and Property Disputes
In commercial, loan, and property disputes, limitation and acknowledgment often determine the fate of litigation. A single sentence in writing can revive a claim. Conversely, failure to record acknowledgment can destroy a legitimate case.
Memory Code for Extension and Acknowledgment (LIMIT-TAP)
| Code | Provision | Purpose |
|---|---|---|
| L | Legal Disability (Sec 6) | Starts after disability ends |
| I | Illness/Delay (Sec 5) | Condonation of delay in appeals |
| M | Mistake or Fraud (Sec 17) | Time starts from date of discovery |
| I | Incorrect Court (Sec 14) | Excludes time spent in wrong forum |
| T | Time for Copies (Sec 12) | Excludes time to obtain judgments |
| T | Two Disabilities (Sec 7) | Time starts after second disability ends |
| A | Acknowledgment in Writing (Sec 18) | Restarts limitation period from date of writing |
| P | Part Payment or Interest (Sec 19) | Renews limitation if done before expiry |
