Setting the scene
Law of limitations is one of the initial things which every lawyer thinks of when they are dealing with a legal claim. The claim may be already in the court or may lead to a court case in the future. If the claimant (the person who is filing the case) misses the deadline which is given by the law to file a case, then the court may reject the case fully and no legal action can be taken. Hence, the lawyers have to ensure that the case is filed right on time and also to check whether there is some way to extend or pause the deadline if there is a need to do the same.
On the other hand, the defendant’s representative can also use this as a defence if the case is filed after the limitation period has ended. This can lead to dismissal of the case. The law of limitation is vital for both sides. Also, the limitation period is not the same in every jurisdiction. The statute of limitation changes based on the type of case and the jurisdiction.
What is statute of limitations
Statute of limitations is basically a time under which you can initiate a legal action. Legal actions like applications, suits, appeals have to be initiated under a specific given time limit. A statute of limitation is a legislation which provides the maximum time limit wherein a legal action can be taken against an offence. If the statute of limitations has passed no action can be taken against the preparator who is accused.
Importance of having law of limitations
There can be times when having a law of limitations may feel unfair and unjust to all the people who suffer from a crime and cannot take action because the limitation period has ended. However, the law of limitations was introduced with keeping some fair and practical reasons in mind. The main objective of the law of limitations is to protect the accused person from an unfair trial. It is not fair to file a case out of nowhere for something which has taken place a long time ago. The limitation periods are set in common civil cases as well as criminal cases.
Another reason for having a limitation period to file a legal action is to ensure that the evidence is not destroyed or lost. If a crime has taken place let’s say 7 years ago then there are chances that all the evidence related to that crime has been either lost or destroyed during the period of seven years. Filing a case now only makes things hard for the court to get a fair result. Also the witnesses at this point do not remain fully reliable. If the crime was not reported despite having a witness at that time, the testimony of the witness cannot be considered reliable.
Limitation Act, 1963
In India, the law of limitations is governed by the Limitation Act, 1963 (hereinafter referred to as ‘the Act’). This Act provides the time limits to file cases in the court. In order to avoid unnecessary delay specific timelines are introduced to file a legal action. This helps in promoting public welfare.
The main objective of this Act is to set limits for filing cases in the court. It helps in avoiding delay and does not cancel any person’s right as well, however given a specific time period to use the right. Law of limitations helps in avoiding long running disputes. The Act is divided into 32 sections and 137 articles. The limitation period for suits related to property is 12 years, while for contract and tort suits the time limit is 1-3 years. For suits related to mortgagor the limitation period is 30 years. The appeals for the death penalty must be filed within thirty days. The limitation period depends on the nature of the suit. The application of the limitation period is equal for all regardless of religion, caste and race.
Bar of limitation
Section 3 of the Limitation Act, 1963 talks about the bar of limitation. If any suit, application or appeal has to be filed within the given limitation period as given under the Act. If an application, suit or appeal is made beyond the limitation period then it is the duty of the court to not proceed even if the plea of limitation is being used as a defence. The court can take suo moto action in relation to this.
Whether a case is filed within the time limit (or is too late) must be decided based on the facts available on the day the case (plaint) is filed. This rule is very important for how the Limitation Act works. Section 3 of the Limitation Act doesn’t take away the court’s power to hear a case. So, even if a court wrongly accepts a case that was filed after the deadline, its decision is still valid. The judgment in a time-barred case is not considered invalid or useless.
If someone does not file a case or application within the time limit set by law, they lose the right to go to court for that matter. However, the actual right they are trying to protect still exists and can be used in other ways if the law allows it as stated in Bharat Barrel & Drum Mfg. Co. Ltd. vs. ESI Corporation (1971).
Extension of limitation
The limitation period to file a case can be extended if the borrower either acknowledges the debt or makes part payment, but this must be done before the original limitation period ends. In such cases, the new limitation period will start from the date of acknowledgment or part payment. This extension is valid only if the act is done by the borrower or someone legally authorized by them. However, once the limitation period has expired, it cannot be revived merely by acknowledgment or part payment.
A stamped acknowledgment by the borrower before expiry does not automatically extend the limitation period against the guarantor. If a revival letter is signed by the borrower and one guarantor, it does not bind another guarantor who hasn’t signed it. Also, if a company mentions a debt in its balance sheet and submits it to the Income Tax department, it is treated as a valid acknowledgment, and the limitation period starts from the date the balance sheet is signed.
If the time limit has already lapsed, the debt can only be revived through a fresh written promise to pay. Under Section 25(3) of the Indian Contract Act, even a time-barred debt becomes legally valid again if there is a new written promise to repay it.
Limitation bars remedy
The law of limitation only bars the party from filing a case after a certain time has passed. Law of limitation does not take the rights of any individual. A person loses the legal way to claim their right if they file a case after too long. For instance if Parth owes money to Shivang and the time limit to recover the money has passed. Parth cannot file a legal action against Shivang in the court to recover the money. However, his right to claim the money still exists. If Shivang who owes the money is not aware of the time limit and pays the same, then he cannot ask for it back stating that the limitation period was over.
There is an exception of limitation bars remedy which is stated in Section 27 of the Act. This provision states that if someone’s right to file a case to get back possession of a property is lost due to limitation, then their actual right to the property is also completely lost, not just the legal remedy.
Condonation of delay
When an extra time is allowed to file an appeal or a case if there is a good and justified reason is known as condonation of delay. Section 5 of the Act states that if a person convinces the court that he was not able to file the case within the limitation period due to a valid reason (sufficient reason) then the court may allow to file a case even if the time limit has ended.
However, Section 5 is not applicable to cases which are filed under Order XXI of the Civil Procedure Code, 1908. This order deals with cases related to execution of court orders or suits. In these cases even if the suit is filed late the court will not accept it even with a presence of a valid reason for delay. In the landmark case of Ramlal, Motilal And Chhotelal vs. Rewa Coalfields Ltd (1961), the Supreme Court stated that once the time period is ended the person has to explain the reason for delay day by day. If a detailed explanation related to day to day delay is not given the court will not consider a sufficient cause and the person will not be allowed to file a legal action.
Doctrine of sufficient cause
The meaning of sufficient case is not given anywhere in the Act. The interpretation of sufficient cause depends on case to case basis. A reason to delay must be something which is out of the person’s control. Sufficient cause is a reasonable and strong reason which states why the person was not able to take a legal action on time prescribed by the law. The delay must not be intentional.
Conclusion
The Law of Limitation is an exhaustive law that covers almost all civil cases. If a time limit is not given for a particular type of civil case, then the court can decide what time would be fair to file it. This law helps prevent unnecessary delay and protects people from being troubled by cases dragging on for too long. If someone has a good reason for not filing the case on time, the Act allows for exceptions. In such cases, the court will first check if the reason for the delay is valid, and then decide whether to allow the case or not. This law is very important in a country like India to make sure people get justice without delay.
Frequently asked questions (FAQs)
Does the law of limitations apply to writs?
No, the Limitation Act does not directly apply to writ petitions filed under Articles 32 and 226 of the Indian Constitution. This means there is no fixed time limit mentioned in the Limitation Act for filing these writs. However, the court may still reject a writ petition if it feels there has been an unreasonable delay without a good reason.
What is the start of the limitation period?
When the cause of action arises the start of the limitation period can be considered.
Which suits have a limitation period of 30 years under the Limitation Act, 1963?
A suit filed by a mortgagor to take back or redeem mortgaged immovable property must be filed within 30 years.
Which suits have a limitation period of 12 years?
A suit filed by a mortgagee to foreclose the mortgage also has a limitation period of 30 years. Other suits related to immovable property must be filed within 12 years. Likewise, suits concerning trusts and trust property also have a limitation period of 12 years under the Limitation Act, 1963.
