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E4-E5 Civil (Technical)

Rev date: 20-04-11

Chapter-18

THE LIMITATION ACT 1963 AN OVERVIEW

Shobhit Kumar, DGM (BS-C), 9412739212 (M) E-mail ID: shobhitkr@sify.com

BSNL India

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E4-E5 Civil (Technical)

Rev date: 20-04-11

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.

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E4-E5 Civil (Technical)

Rev date: 20-04-11

3.0 Articles of Limitation Act for our contract, applicable for initiating
Arbitration Proceedings: Article No. Description of Suits Period of Limitation Three years Time from which period being to run when the time specified arrives.

27.

For compensation for breach of a promise to do anything at a specified time.

54.

For specific performance Three years of a contract.

The date fixed for 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. Any other application for Three Years which no period of limitation is provided elsewhere. when the right to apply accrues.

137.

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.

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E4-E5 Civil (Technical)

Rev date: 20-04-11

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. 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. 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

8.2

8.3

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E4-E5 Civil (Technical) Mistaken advice of layer Bona-fide mistake in calculation

Rev date: 20-04-11

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). 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. 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. Section 16Effect 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. 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.

8.5

8.6

8.7

8.8

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E4-E5 Civil (Technical) 9.0 THE SCHEDULE PERIODS OF LIMITATION [Section 2 (i) and 3] FIRST DIVISION SUITS

Rev date: 20-04-11

Article No.

18.

27.

54.

68.

80.

100.

112.

Period Time from which of period deigns to run Limitat ion For the price of work done by the Three When the work is done plaintiff for the defendant at his Years request, where no time has been fixed for payment For compensation for breach of a Three When the time promise to do anything at a Years specified arrives or the specified time, or upon the contingency happens happening of a specified contingency For specific performance of a Three The date fixed the contract Years performance, or, if no such date is fixed, when the plaintiff has noticed that performance is refused. For specific movable property lost, Three When the person or require by theft, or dishonest years having the right to the misappropriation or conversion. possession of the property first learn in whose possession it is. For compensation for wrongful One The date of the seizure seizure of movable property under Year legal process To alter or set aside any decision or One The date of the final order of a civil court in any Year decision or order by the proceeding other than a suit or any court or the date of the act or order of an officer of act or order of the government in his official capacity officer as the case may be. Any suit (except a suit before the Thirty When the period of Supreme Court in the exercise of its Years limitation would begin

Description of Suits

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E4-E5 Civil (Technical) original jurisdiction) by or on behalf of the Central Government or any state Government, including the Government of the State of Jammu & Kashmir Any suit for which no period of limitation is provided elsewhere in this Schedule Any other application for which no period of limitation is provided elsewhere in this division

Rev date: 20-04-11 to run under this Act against a like suit by a private person.

113.

Three years Three Years

When the right to sue accrues. When the right to apply accrues.

137.

Questions
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. In case of hardship, what is maximum limitation period which can be extended by the court for invoking Arbitration? What are the provisions of section 4 of Limitation Act? What are the provisions of section 5 of Limitation Act? What do you mean by Legal disability in respect of section 6 of Limitation Act? What do you mean by continuous running of time as per section 9 of Limitation Act? What do you mean by Exclusion of time in legal proceedings in the light of section 12 of Limitation Act? What will be the effect of death on or before the accrual of the right to sue? What is the limitation period to sue a minor legal representation of deceased? What is the limitation period for any suit by central or state government to file in the court? What is the limitation period for which no period of limitation is provided in the schedule of period of Limitation of Limitation Act?

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