Limitation On Filing Suit For Recovery Of Money | Suit For Recovery Of Money

limitation on filing suit for recovery of money

LIMITATION ON FILING SUIT FOR RECOVERY OF MONEY

Limitation on filing suit for recovery of money- The main aim of the Law of Limitation is to protect the lengthy process of penalizing a person indirectly without doing any offense.

It was enacted on 5th October 1963 and came into force from 01/01/1964 for the purpose of legal principles relating to limitation of suits and other legal proceedings.

It does not prescribe a period of limitation for filing an appeal. The ‘Law of Limitation’ prescribes the time-limit for different suits within, which an aggrieved person can approach the court for redress or justice.

If one does not go to the court within that time, the courts will not be of help to recover your money. This is called the limitation period. After the limitation period, you cannot enforce your rights in a court.

It is extended to the whole of India except the State of Jammu and Kashmir. The period has been prescribed in Schedule in the of the Act.

  1. 3years – A suit relating to accounts, Contracts, Declarations, Decrees, suits relating to movable property, Recovery of a lawsuit under a contract, etc.
  2. 12 years – Suits relating to possession of the immovable property.
  3. 30 years – Mortgaged Property
  4. 1 year – Suit relating to torts and.

3 years – Compensation in certain cases

  1. 30 to 90 days – Case of appeals under Civil Procedure Code and Criminal Procedure Code.

Section 4 says that if on the last day of the limitation period, the court is closed, then an appeal or application can be filed on next day when the court reopens. It is based on the principle of “actus curial neminem gravabit” which means that an act of court shall not prejudice anyone.

Under Section 5, if the proper cause is shown, period of filing appeal and application can be extended.

Section 6(1) says that, the person is entitled to file an appeal or application, but if the person is disabled, the limitation period will begin after the disability is removed.

The limitation period continues even if there is any subsequent disability or inability to institute a suit or make an application.

In case of an order passed by any lower court(s) in civil suit –

  1. Appeal to High Court can be made within 90 days from the date of decree or order.
  2. Appeal to any other Courts can be made within 30 days from the date of decree or order.

In Smt. Anita Chaudhary Vs. Rajesh Chaudhary, taking note of Section 19(3) of the family court act, 1984 that defines period of Thrity days to file the appeal, noted out delay in filing of an appeal but considering the provisions of Section 28(4) of Hindu Marriage Act, 1955 which stipulates the period of 90 days to file the appeal against the decree or order passed under the sections of the Act of 1955. Here the court considered the appeal as competent

Bombay High Court in Shivram Dodanna Shetty Vs. Sharmila Shivram Shetty, observed that the parliament amended the provisions of Section 28(4) of the Act of 1955 substituting period of limitation of 30 days to 90 days for preferring an appeal under section 28.

Section 136 governs the execution of the decree or order of Civil Court other than a decree for mandatory injunction.

The period of limitation as presecribe for an application for the execution of any decree or order of any Civil Court is 12 years and the time will starts from the date when that decree or an order becomes enforceable or where that decree or other subsequent order directs any payment/recovery of money or the delivery of any property to be made at the certain date or at recurring periods, when default in making the payment or delivery in respect of which execution is sought to take place.

Section 3 of the Act shall apply to such a case where a special or local law defines different period(s) of limitation for filing a suit, appeal, or application.

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Basic Principles of Limitation

  1. Period of stay is excluded

It is provided in Section 15 of the Act that while computing period of limitation in case of any suit, time for stay or execution of any order shall be excluded.”

  1. Limitation period to begin from the time when acknowledgment was made

“Acknowledgment” refers to an acceptance or admission of something that exists. The acknowledgment must be prior to the expiration of limitation period.

  1. The Act does not extinguish a right, but it bars the remedy

But the Legal right is not taken away to file suit or application. It bars them from getting any kind of compensation for the previous suit because the limitation period is over.

  1. Period of Limitation period in case of payment in installments.

When any a party is obliged to make payment in installments or for a continued period, for every payment a fresh limitation period shall apply.

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Conclusion

The Law of Limitation defines the time frame within which the person may enforce his/her legal right. The Act keeps a check on the cases so that it can not dragged for over a long time. As said before, once the limitation period is exhausted the remedy is also exhausted, but one does not exhaust his right. So, a party must know the limitation period before filing any kind of suit or application in the respective court.

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  • Very useful news for this article….

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