How limitation works

Section 3 of the Limitation Act 1963 bars any suit, appeal, or application instituted after the period prescribed in the Schedule, unless the period is extended by some specific provision (acknowledgement under s 18, fresh contract under s 25, fraud or mistake under s 17, or a continuing breach under s 22).

Condonation under section 5

Section 5 of the Act provides for condonation of delay in respect of any appeal or application (not suit) where the appellant or applicant satisfies the court that there was sufficient cause for not preferring it within the prescribed period. The discretion is broad but is exercised on the facts of each case. Limitation in suits cannot be condoned under section 5.

The doctrine of acknowledgement

Section 18 of the Act provides that where, before the expiration of the prescribed period, an acknowledgement of liability has been made in writing signed by the party against whom the right is claimed, a fresh period of limitation begins to run from the date of acknowledgement. This is the principal mechanism by which a creditor extends the limitation period in commercial recovery and IBC matters.

What this tool does not do

• It does not address fact-specific questions of when the cause of action arose. Determining the date of accrual requires a full reading of the contract and the conduct of the parties.
• It does not address the application of section 18 (acknowledgement), section 17 (fraud), section 19 (part payment), or other limitation-extending events.
• It does not address forum-specific limitation provisions that may override or supplement the Limitation Act 1963 (for example, statutory time limits under the SARFAESI framework, the IBC s 12 timeline, or sectoral statutes).
• It is not legal advice. For limitation analysis on a specific matter, written counsel is required.