The general rule is that limitation begins to run from the accrual of the cause of action; and if once it has commenced to run, no subsequent even will stop its running and the period of limitation is to be computed from the date of the accrual of cause of action.
But sometimes, owing to some exceptional circumstances the operation of limitation is suspended, i.e., certain portions of the time during which the exceptional circumstances exist are allowed to be excluded in the computation of the period of limitation e.g., the time during which the defendant has been absent from India is excluded in computing the period of limitation.
In case of suspension the already elapsed period is not ignored, but is added to the period which follows suspension. Sometime, exceptional circumstances interrupt the operation of limitation after it has run for some time. In case of interruption, the already elapsed period is cancelled and a fresh period of limitation is computed from the date of interruption.
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(а) Instances of suspension of limitation.
ADVERTISEMENTS:
(1) Where letters of administration to the estate of a creditor has been granted to his. debtor, the running of the period of limitation for a suit to recover the debt shall be suspended while the administration continues. (Section 9, Provision).
(2) Defendant’s absence from India and from territories outside India under the administration of the Central Government [Sec. 15(5)].
(3) Abortive bona fide proceedings in court without jurisdiction [Sec. 14].
ADVERTISEMENTS:
(4) Where the institution of a suit or the execution of a decree has been stayed by an injunction or order [Sec. 15 (5)]
(5) Where notice has to be given to the defendant or for which the previous consent or sanction of the Government or any other authority is required, in accordance with the requirements of any enactment for the time being in force. [Sec. 15(2)]
(б) In respect of suits on behalf of an insolvent of a company in liquidation, the period between the date of the filing of the petition for adjudication, or winding up and the appointment of the receiver or interim receiver or liquidator or provisional liquidator and a period of three months thereafter to enable the liquidator or the receiver to acquaint himself with the affair of the estate, shall be excluded in computing the period of limitation for suits by or on behalf of an insolvent’s estate or the company. [Sec. 15(3)].
(7) If a purchaser at a sale in execution has to file a suit to recover possession of the property purchased by him, the time during which the application to set aside the sale was being fought out will be excluded from computation. [Sec. 15 (4)].
ADVERTISEMENTS:
(8) Where there is no person capable of suing or being sued. [Sec. 16].
(9) Where the right to sue or make an application or any document necessary to establish such right, has been fraudulently concealed from the knowledge of the plaintiff by the fraud of the defendant. [Sec. 17].
(10) Where the plaintiff is suffering from legal disability i.e., minority, insanity or idiocy. [Sec. 6].
(b) Limitation is interrupted in the following cases:
(1) Where there is a continuing breach of contract or a tort. [Sec. 22].
(2) Written acknowledgment of liability signed by the defendant or any person through whom he claims or his agent. [Sec. 15].
(3) Payment of interest on a debt or legacy by the person liable to pay it or by his agent. (Sec. 19).
(4) Part payment of principal evidenced by the hand-writing of the defendant or his agent.
(c) Limitation is extended in the following cases:
(1) Where the court is closed when period expires. (Sec. 4).
(2) Where the appellant or applicant- satisfies the court that he had sufficient cause for not preferring the appeal or application within the period of limitation. (Sec. 5).
The above two are instances of circumstances directly extending the period of limitation. The circumstances mentioned in (a) and (b) above extend the period indirectly.
(d) Cases in which limitation does not run at all:
Suit against express trustees and their representatives. (Sec. 10).