WHY LIMITATION PERIOD IS NECESSARY FOR THE COLLECTION OF PAYMENTS FROM CLIENTS?

INTRODUCTION

In simple terms, the word limitation refers to a restriction, a regulation, or constrained circumstances. The statute of limitation has been defined as the time period that an aggrieved individual has to file a lawsuit in order to seek redress or justice from the court. The core idea of limitation refers to the setting or prescription of a time limit for legal acts to be taken. ‘Period of limitation’ means the time limit imposed for any action, appeal, or application by the Schedule, and ‘prescribed period’ means the period of limitation determined in accordance with the requirements of this Act, according to Section 2 (j) of the Limitation Act, 1963.

There are 32 sections and 137 articles in the Limitation Act. The articles are split into ten divisions or parts. The first part is about accounts, the second part is about contracts, the third part is about declarations, the fourth part is about decrees and instruments, the fifth part is about the immovable property, the sixth part is about the movable property, the seventh part is about torts, the eighth part is about trusts and trust property, the ninth section is about miscellaneous matters, while the last section is about suits that do not have a time limit.

The Law of Limitation refers to preventing different legal actions from being brought against an aggrieved individual after the last day for filing a suit and seeking a remedy or justice before a court. The law of limitation will apply to any claim filed after the case is dismissed. The primary and essential goal of the legislation of limitation is to safeguard the lengthy process of indirectly punishing a person who has not committed any offense.

What are the salient features of the limitation act?

  • In the case of a suit by the mortgagor for the redemption or recovery of possession of the immovable property mortgaged, or in the case of mortgages for foreclosure, or suits by or on behalf of the Central Government or any State Government, including the State of Jammu and Kashmir, the limitation period is reduced from 60 years to 30 years.
  • While different forms of cases pertaining to immovable property, trusts, and endowments have a longer duration of 12 years, suits relating to accounts, contracts, and declarations, suits relating to decrees and instruments, and suits relating to moveable property have a shorter period of 3 years.
  • Cases pertaining to torts and miscellaneous matters, as well as suits for which no term of limitation is established elsewhere in the Schedule to the Act, have a period of limitation ranging from one to three years.
  • Suing foreign rulers, ambassadors, and envoys needs the approval of the Central Government, according to Sections 86 and 89 of the Civil Procedure Code. When determining the period of limitation for filing such claims, the Limitation Act of 1963 specifies that the time spent seeking such permission should be eliminated.
  • Since both Hindu and Muslim law are now available under the rule of limitation as per the existing statute book, the Limitation Act, 1963, with its new legislation, implies that it makes no race or class discrimination.
  • The definitions of ‘application,’ ‘plaintiff,’ and ‘defendant’ in the new Act have been expanded to include not just the individual from whom the application was made. The term “plaintiff” or “defendant” refers to a person whose estate is represented by an executor, administrator, or other representatives.

IS IT TRUE THAT THE ACT IS ALL-INCLUSIVE?

With regard to all subjects specifically dealt with in it, the Limitation Act is exhaustive. Ordinarily, the Act only applies to civil matters unless otherwise clearly and particularly provided for.

WHAT IS SECTION 12 OF THE LIMITATION ACT?

The Limitation Act of 1963 establishes time limits for lawsuits, appeals, and applications. The computation of the period of limitation principles (Sections 12 to 24) is intended to apply not only to periods of limitation stipulated by the Schedule but also to periods of limitation prescribed by other statutes. Section 12, provides for the exclusion of time when calculating the term of limitation. The day from which the term is to be calculated, as well as the time required to procure copies of documents referred to in sub-section (2) to (4), are excluded from calculation under Section 12 of the Act (4). The real consequence of Section 12 is that the durations mentioned in the different subsections must be added to the limitation period. Let’s see what are the provisions are mentioned in section 12 of the Act:

  1. According to the sub-section (1) of section 12, that states, the day of cause of action shall not be included in the calculation of the limitation period of any suit. The calculation starts from the day the suit is filed.
  2. Sub-section (2) of Section 12 of the Limitation Act applies to the exclusion of the time taken in filing any appeal, review, or revision of any judgment or obtaining the copy of any decree or order. It also includes the time requisite for getting a judgment or decree of any appeal or revision or review.
  3. The time spent in obtaining a copy of the judgment also will be excluded under subsection (3) of Section 12, because it is generally necessary that the judgment on which the decree of the High Court is based should be obtained in order that the parties may ascertain what its terms are, and further filed with the application for leave to appeal.
  4. According to sub-section (4) of Section 12 of the Limitation Act, the period for obtaining a copy of the award is to be excluded in computing the period of limitation for an application to set aside an award.

IF A PERSON FAILS TO FILE A SUIT WITHIN THE LIMITATION PERIOD?

The Limitation Act of 1963 establishes the time restriction for filing a lawsuit. It describes what should be included and excluded when determining the time limit for a lawsuit or appeal. The condonation of delay is covered under Section 5 of the Limitation Act. It states that the court can accept any appeal or application filed after the limitation period provided the appellant or applicant demonstrates that he has a legitimate reason for not filing the appeal or application within the time restriction.

The Limitation Act does not define the word “sufficient cause.” It changes depending on the circumstances. Depending on the facts and circumstances of each case, the court has broad discretion in determining what constitutes adequate cause. The Limitation Act, on the other hand, allows for the pardon of delays in all applications save those submitted for the implementation of decrees and orders.

What are the circumstances in which condonation is permissible?

  • Changes in the legislation have occurred since then.
  • The person who files the lawsuit or appeal may be imprisoned.
  • The individual who files the lawsuit, appeal, or application is sick.
  • The party is illiterate.
  • The writ petition is still pending, thus there is a delay.
  • The party is a member of a minority group with limited funding.

What are the exceptions to the delay excuse?

There are a few caveats to the scope of the concept of delay condonation (Section 5):

  • Only criminal proceedings are covered under the doctrine.
  • Only appeals and applications are covered by the doctrine, which excludes “suit.”
  • Except in the case of an application under Order XXI of the Code of Civil Procedure, 1908. All appeals and applications are covered by the doctrine.

CONCLUSION

The law specifies how long a person has to exercise his legal right. This Act keeps an eye on the cases to ensure that they do not drag on for too long. This Act also recognizes that there are times when people filing a lawsuit or preferring an appeal for a legitimate reason are unable to do so within the time limits set forth in the Act. The Law of Limitations and the Doctrine of Condonation of Delay are two useful instruments for efficient litigation and case resolution. The law of limitations is protected by the doctrine of condonation of delay, which prohibits certain circumstances in which the delay in bringing the claim is justified, i.e. can be justified by having “sufficient cause.”

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