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☐ Limitation bars the remedy but does not extingush the right
explain

Meaning of the Principle

The principle that "limitation bars the remedy but does not
extinguish the right" is a fundamental concept in civil procedure
and limitation law. It means that once the period of limitation for
filing a suit expires, the legal remedy to enforce the right is lost,
but the basic right itself is not extinguished. This principle is
governed by the Limitation Act, 1963

"Bars the remedy" → The court will not entertain a suit if it is filed
after the prescribed limitation period.

"Does not extinguish the right" → The right of the plaintiff may
still exist morally, contractually, or equitably, but cannot be
enforced through the courts.

The Code of Civil Procedure (CPC), 1908, does not directly deal
with limitation. Instead, the Limitation Act, 1963 provides the time
limits for filing different cases. However, CPC ensures that courts
follow these time limits when accepting cases.

This principle is based on Section 3 of the Limitation Act, 1963,

which states that if a case is filed after the limitation period, the
court must dismiss it—even if the other party does not object.

Illustration

Suppose A lends ₹1 lakh to B and B does not repay the money.

Under the Limitation Act, A has 3 years to file a suit for recovery.

If A does not file a suit within this time, the court will dismiss any
suit filed later.
But A's right to receive the money still exists—if B voluntarily
repays it later, it will not be illegal or invalid.

Section 27 of the Limitation Act – An Exception

While generally, the right is not extinguished, Section 27 of the

Limitation Act provides an exception. It states that if a person
does not file a suit to recover possession of immovable property
within the limitation period, the right to that property is also lost.

3. Exceptions Where Limitation Does Not Apply Strictly

There are situations where limitation rules are relaxed, allowing

cases even after the time limit has passed. Some exceptions
include:

1. Fraud or Mistake

If a person was tricked or misled into not filing a case, the

limitation period starts only when they discover the fraud or
mistake.

2. Acknowledgment of Liability

If the debtor acknowledges their debt before the limitation

expires, a fresh limitation period starts from the date of
acknowledgment.

3. Disability

If a person was a minor or mentally ill during the limitation period,

they can file a case after the disability ends.

4. Continuing Breach or Tort

If the wrongful act is ongoing (e.g., illegal occupation of land), a

fresh limitation period begins each time the act continues.
5. Government Cases

No limitation applies to government claims related to property

held on its behalf.

4. Case Law Example

Punjab National Bank v. Surendra Prasad Sinha (1992)

The Supreme Court held that a debt does not become void after
the limitation period; only the court cannot enforce it. If the
debtor still chooses to pay, the payment is valid.

Bombay Dyeing & Manufacturing Co. Ltd. v. State of Bombay

(1958) – The Supreme Court held that the expiry of the limitation
period does not destroy the right itself; it only prevents the holder
from enforcing it through legal proceedings.

Key Takeaways

1. Limitation Act sets deadlines for filing cases.

2. If the time limit expires, courts will not accept the case.

3. The right itself is not erased—it still exists outside the court
system.

4. A person can still fulfill an obligation voluntarily even if the

legal remedy is lost.

5. To prevent case backlogs.

Conclusion
If you miss the deadline to file a case, the court will not help you
get your right. But this does not mean the right itself is erased—
you just can’t enforce it legally. That’s why limitation bars the
remedy but does not extinguish the right.

☐ Once the time has began to run no subsequent disability or

inability stopsit discuss?

Under the Civil Procedure Code (CPC) of India, Section 9 governs

the time limit for suits and the effect of disabilities or inability on
the running of time. The general principle is that once the time
has started running, no subsequent disability or inability will stop
or extend the time period for filing a suit.

Key Principles:

1. Time starts running immediately:

Under Section 3 of the Limitation Act, 1963, the time for filing a
suit or appeal starts from the day the cause of action arises,
unless otherwise specified. Once this time period begins, it is
continuous unless expressly provided by law.

2. Disability or inability:

Section 6 of the Limitation Act deals with the effect of a disability

or inability. It provides that the period of limitation shall not run
against certain categories of persons like minors, mentally ill
persons, or individuals in jail. However, this provision only
suspends the running of time for a specific period during the
disability.

3. No effect after the disability is over:

Once the disability or inability is removed, the time will continue

from the point it was suspended, but no extension is given to the
time limit as a result of the disability. If, for instance, a person
who is a minor or mentally ill is involved in a case, the period of
limitation will be suspended during the disability but will not be
extended beyond the normal period once the disability is over.

4. The starting time is unaffected:

Even if a disability or inability is removed after a certain period,

the limitation period continues to run as if the disability had never
existed. Therefore, the initial time limit set by the law for filing a
suit or appeal will continue to run irrespective of the fact that the
person had a disability during some portion of that time.

Example:

If a person who is suffering from mental illness has 3 years to file

a suit, but due to their mental illness, the time limit is suspended
for 1 year, once the mental illness is cured or the person is no
longer unable to act, the remaining time for filing the suit would
not be extended. The person must file the suit within the
remaining 2 years from the point of suspension.

Krishnaswamy v. C. Subramanyam

Facts: The plaintiff claimed that the limitation period should be

extended due to subsequent disability.
Held: The Supreme Court held that once the period of limitation
starts running, any subsequent disability or inability does not
interrupt or extend the time limit.

Prem Singh v. Birbal (2006)

Principle: The Supreme Court ruled that the Limitation Act must
be strictly interpreted and that courts cannot extend the period
due to subsequent disability unless expressly allowed by law.

Facts: The plaintiff tried to argue that his inability to act should be
considered, but the court held that once the limitation period has
begun, it cannot be stopped except under specific statutory
provisions

Conclusion:

Under the CPC and Limitation Act, the time for filing a suit or
appeal cannot be indefinitely extended by a disability. Once the
time begins, it will run its course, and while certain disabilities
may delay the running of time, once the disability is removed, the
clock resumes without any additional benefit of time.

☐ Discuss the effects of fraud or mistake on the period of

limitation

The Code of Civil Procedure, 1908 (CPC) and the Limitation Act,
1963, fraud or mistake can have a significant impact on the
period of limitation for filing a suit. Section 17 of the Limitation
Act, 1963

Section 17 states that in cases where a suit or application is

based on fraud, mistake, or concealment, the limitation period
does not begin to run until the affected party discovers the fraud
or mistake, or could have discovered it with reasonable diligence.

This provision ensures that a party is not unfairly barred from

seeking justice due to the fraudulent conduct of another party or
an innocent mistake.

1. Fraud

If a party is prevented from filing a suit due to fraud committed by

the defendant, the limitation period will start only when the fraud
is discovered.

Example:

A forges a sale deed of B’s property and registers it. B remains

unaware of this fraud for five years. If B later discovers the fraud,
the limitation period will begin from the date of discovery, not
from the date of registration.
2. Mistake

If a person files a suit based on a mistake of fact or law, the

limitation period will start from the date the mistake is
discovered.

Example:

X mistakenly believes that he owes money to Y and pays him.

After five years, X realizes there was no legal obligation. The
limitation period for recovering the money will start from the date
of discovery.

3. Concealment of Documents

If a defendant conceals a material document from the plaintiff,

the limitation period starts from the date when the plaintiff
discovers or could have discovered the concealment with
reasonable diligence.

Example:

A legal heir is unaware of a will that grants him property rights. If

the other heirs hide the will, the limitation period will begin only
when he discovers the concealed document.

4. Delay Due to Fraud by an Agent or Trustee

If a trustee or agent commits fraud against a beneficiary, the

limitation period starts when the beneficiary learns of the fraud.

Example:

A trustee misussed trust funds and does not inform the

beneficiaries. The limitation period will start from the date the
fraud is discovered.

*Exceptions and Limitations

The protection under Section 17 does not apply if the party was
negligent in discovering the fraud or mistake.

The burden of proof is on the plaintiff to establish that the fraud or

mistake could not have been discovered earlier.

If a person deliberately avoids knowledge of the fraud, they

cannot claim the benefit of Section 17.

*Laxmibai v. Roha & Co. (1990)

Facts: The plaintiff was deceived into signing documents that

transferred her property without her knowledge.

Held: The court ruled that limitation begins from the date the
fraud is discovered, not from the date of the transaction.

*Parwatibai v. Sonubai (1999)

Held: Mere suspicion of fraud does not extend limitation; the

plaintiff must prove actual discovery.

Key Takeaways

1. Fraud must be actively concealed for the limitation period to be

extended.

2. Mistake must be genuine, and the affected party must act with
due diligence.

3. The burden of proof lies on the plaintiff to show why they could
not have discovered the fraud or mistake earlier.

4. Courts take a balanced approach, ensuring that frauds do not

benefit while also preventing misuse of Section 17.

Conclusion

The Limitation Act provides a fair mechanism to ensure that

fraudulent conduct or genuine mistakes do not unfairly bar a
person from seeking justice. However, the affected party must act
diligently and prove the delay was due to circumstances beyond
their control.

☐ State the essentials of valid acknowledgement ?

Definition of Acknowledgment

An acknowledgment is a written admission of an existing liability

or debt made before the expiry of the limitation period by a
person against whom a claim may be made. It serves to extend
the limitation period for filing a suit.

In the Code of Civil Procedure, 1908 (CPC), an acknowledgment

plays a crucial role in extending the limitation period for filing a
suit under Section 18 of the Limitation Act, 1963. A valid
acknowledgment must meet certain essential requirements.

1. Must Be in Writing

The acknowledgment must be in written form; oral

acknowledgments are not valid under Section 18 of the Limitation
Act.

It can be in the form of a letter, email, account statement, or any

other written document.

2. Must Be Signed by the Party Concerned

The acknowledgment must be signed by the person making it or

by an authorized agent.

If a company acknowledges liability, it must be signed by a

person authorized to act on behalf of the company.

3. Must Relate to a Legally Enforceable Right

The acknowledgment must refer to an existing debt, claim, or

liability that can be legally enforced in court.
It cannot be vague, uncertain, or refer to a non-existent liability.

4. Must Be Made Before the Expiry of the Limitation Period

The acknowledgment should be made within the limitation period

of the claim.

If given after the limitation period has expired, it will not revive
the claim.

5. Must Indicate an Existing Liability

The acknowledgment must indicate that the debt or liability is still

due and payable.

It should not deny or fully discharge the liability.

6. No Specific Form Is Required

There is no prescribed format for a valid acknowledgment.

It can be in any form, such as a simple letter, email, balance

sheet, or signed statement.

7. Conditional Acknowledgment Is Acceptable

If the acknowledgment is conditional, the condition must be clear

and reasonable.

For example, an acknowledgment that a debt exists but will be

paid only upon receiving certain funds can still be valid.

8. Must Be Made by a Competent Person

The acknowledgment should be made by a person legally

competent to do so, such as:

The debtor or their authorized agent.

A company through its director or officer.

9. Can Be Addressed to Anyone

The acknowledgment does not have to be addressed to the

creditor specifically.

Even an internal communication (such as an entry in a company’s

balance sheet) can serve as an acknowledgment.

10. Extends the Limitation Period

A valid acknowledgment under Section 18 of the Limitation Act

resets the limitation period from the date of the acknowledgment.

This means the creditor gets a fresh period to enforce the claim in
court.

Tilak Ram v. Nathu (1967) – The Supreme Court held that a

balance sheet signed by directors acknowledging a debt
constitutes a valid acknowledgment.

2. L.C. Mills v. Aluminium Corporation (1971) – It was held that

acknowledgment need not be direct; even implied
acknowledgment in writing can suffice.

Effect of a Valid Acknowledgement

If an acknowledgement satisfies these essentials, the limitation

period starts afresh from the date of acknowledgement, extending
the time available to file a suit.

These essentials ensure that an acknowledgment is legally

binding and extends the limitation period for enforcing a claim
under CPC.
☐ The general rules for calculation of period of limitation for filing
suit?

The Limitation Act of 1963 specifies the time frame within which a
party must file a suit in a court of law. The time period is called
the limitation period. If a party fails to file a suit within this period,
they may be barred from pursuing their case.

Under the Code of Civil Procedure (CPC), there are specific rules
to calculate the limitation period, which helps ensure that legal
matters are settled promptly and prevents overdue claims from
being brought up.

1. Day from which limitation begins to run: The limitation period

starts from the day the cause of action (the reason for the suit)
arises. This means the clock starts ticking when the issue or
wrong happens, not before.

2. Exclusion of time during which plaintiff was under disability:

If the person filing the suit is a minor, insane, or in jail, the period
of limitation doesn't count while they are under such disabilities.
The time is added once the disability ends.

3. Exclusion of time during which defendant was absent:

If the defendant is out of the country or hiding, the period of
limitation is paused until they return or are found.

4. Time taken by the plaintiff to get the right to sue:

If the plaintiff is unable to file the suit immediately due to certain
legal or procedural reasons, the time spent trying to get the right
to sue (like waiting for approval or permission) doesn’t count
towards the limitation period.

5. Computation/ calculation of the period of limitation:

If the last day of the limitation period falls on a public holiday or a
Sunday, the time is extended until the next working day.

6. Effect of the death of a party:

If the plaintiff or defendant dies, the limitation period is extended
for their legal heirs.
If a person involved in the case dies, the legal heirs or
representatives have a certain time period after the person’s
death to file or continue the suit.

7. Time spent in the previous proceedings: If the case was

previously filed in another court but had to be transferred or
dismissed, the time spent in the original case is added to the
limitation period, as long as it was done in good faith.

8. Effect of fraud or mistake:

If someone is prevented from filing a suit due to fraud or mistake
(for example, not knowing they were wronged because they were
misled), the limitation period begins from the time they find out
about the fraud or mistake.

9. Time for which the suit is under process: If the case is put on
hold for a certain period (for example, because of an injunction or
stay order), this time is not counted in the limitation period.

10. Effect of acknowledgment of liability:

If the defendant acknowledges the claim (for example, admitting
the debt), the limitation period restarts from the date of
acknowledgment.

11. Limitation period is not extended automatically:

If the suit is not filed within the limitation period, the right to sue
is lost unless the person can prove valid reasons (such as
disability or fraud) for the delay.

*B. Desai v. V.M. Desai (2000)

Summary: The Court ruled that if the plaintiff is a minor or

suffering from mental illness, the period of disability is excluded
when calculating the limitation period, and the suit may be filed
within the time limit after the disability is removed.

*Case Law: The Union of India v. M/s. Krishna Engineering Works

(2007)

Summary: The Court ruled that when a higher court grants an

extension of time or stays the proceeding, the limitation period is
calculated from the new date specified by the court.

These rules ensure fairness in giving enough time for people to

approach the court while preventing long delays.