Limitation Act,1963 - Computation of Period of Limitation (Section 16 to 21)

We have seen provisions related to computation of period of Limitation. In this blog we will cover additional provision. Situation like mistake, fraud, acknowledgement, payment are covered from section 16 to 21.

As far as possible, we will try to give examples to make ideas given under those section clear.

Section 16-Effect of death on or before the accrual of right to sue

This section deals with two scenarios. When there is going to be a right against say X, and X dies, then what is the impact on Limitation Period. Meaning you were suppose to file a suit against X in 1st Jan 2020, but he dies in Oct, 2019.

Similarly if Y was going to have a right against on 1st Jan 2020, but he dies in Oct 2019.

How do we compute limitation period in such scenario. The answer is provided by Section 16 of the Limitation Act and can be summarized as below:

However below suits are exempted from Section 16.

1. Suit to enforce right of pre-emption

2. Suit for possession of Immovable property

3. Suit for hereditary office

This is in short is Section 16.

Section 17- Effect of Fraud or Mistakes

Here is two examples. Can you answer the questions in these examples ? The first one deals with fraud and second one deals with mistake.

Answer to both of the question is provided by Section 17.It states that Limitation period will not start till plaintiff or applicant haven't discovered fraud or mistake. In first case plaintiff will be B, whereas in second case it will be Flipkart.

Another provision is related to concealment of document. For example X has two sons S1 and S2. X gives his property to S1 in a will. Will is concealed by S2 and he sells the property to C. Does limitation period for S1 starts as soon as property is sold to C? Answer is again No. Limitation period does not start till the concealed document is shown for first time.

Addition features of Section 17:

There is proviso to this section. It states that no suit can be filed to recover or enforce any charge against or set aside any transaction affecting any property.

Below is the summary of this proviso:

Section 18- Effect of acknowledgement

Example Again:

Section simply says that when acknowledgment of liability is made, the Limitation period starts again.

One thing to note here is that such acknowledgement should be made by the debtor or party who has liability. If acknowledgement is made by random third party then this section will not be applicable and there will be no extension of Limitation party 

Few more things about this section i.e about written acknowledgement:

Section 19 - Effect of payment on account of debt or interest

This section is quite similar to section 18. It also talks about fresh start of Limitation period. Instead of acknowledgement, it talks about payment or part payment about debt or interest.

Hope below image will explain the section:

One thing to note here is that such payment should be made by the debtor or party who has liability, or his agent.

Section 20-Effect of acknowledgement/payment by other person

This further explains the meaning of "Agent" used in section 18 and 19. It states that Agent in case of minor includes the guardian, or an agent appointed by such guardian.

This section also deals with a acknowledgement by one of partner out of 3 partner. What will be impact on Limitation period of remaining two partner  if one of them make acknowledgement or payment?

This section can be summarized as below:

Exceptions as to acceptance by one among many included mortgagee, executors etc.

Section 21- Effect of substituting of defendant/plaintiff

This section can be summarize as below:

We have seen some rules in previous post. We will see few more rules in next post.

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