Limitation Act: Definitions and Computation of Time

Limitation problems turn on two things: the meaning of the words the Act uses, and the arithmetic of counting time. Section 2 defines the key terms, some in ways that differ from their ordinary or general meaning, and the Schedule together with Part III of the Act supplies the method of computation. This note sets out the definitions that matter, the method of computing limitation step by step, the calendar rule, and a worked example.

1. Definitions in Section 2

Figure 1: The terms most often examined

• Good faith. The Act's definition is stricter than the General Clauses Act, which treats an act done honestly as in good faith even if negligent. Under the Limitation Act, absence of due care and attention defeats good faith, which matters most under s.14 (Topic 11)
• Period of limitation and prescribed period. The period of limitation is the bare period in the Schedule; the prescribed period is that period as computed under the Act, after exclusions and extensions.
• Suit, appeal, application. The three are distinct; a suit does not include an appeal or an application, so each has its own articles and its own rules on condonation (Topic 5)
• Trustee. Section 10 protects claims against express trustees; the definition keeps benamidars, mortgagees in possession after satisfaction and wrongdoers out of that protection (Topic 9)
• Easement. Includes a right, not arising from contract, to remove and appropriate any part of the soil or anything growing on another's land (Topic 21)

2. Method of Computation

Figure 2: Five steps to compute limitation

• The third column. Time runs from the event stated in the Schedule, such as the date of a note, the date of a breach, or the date when the plaintiff first knew of a fact. The choice of article therefore decides the starting point (Topic 30)
• Exclusion of the first day, s.12(1). The day from which the period is to be reckoned is excluded.
• Calendar, s.24. All references to time in the Act are to be read according to the Gregorian calendar.
• General Clauses Act. Sections 9 and 10 of the General Clauses Act state similar rules for Central Acts generally; the Limitation Act's own provisions govern computation under it. In Haru Das Gupta v State of West Bengal (1972) the Court applied the rule that the first day is excluded where a period runs 'from' a date.

Figure 3: Worked example

3. Frequently Asked Questions

What is the difference between period of limitation and prescribed period?

Under section 2(j), the period of limitation is the period prescribed for a suit, appeal or application by the Schedule. The prescribed period is the period of limitation computed in accordance with the provisions of the Act, that is, after applying the exclusions, extensions and fresh periods in Parts II and III.

How is good faith defined in the Limitation Act?

Section 2(h) provides that nothing shall be deemed to be done in good faith which is not done with due care and attention. This is stricter than the General Clauses Act, where honesty alone suffices, so a litigant who acts honestly but carelessly cannot claim good faith under the Limitation Act.

4. Related Topics

• Topic 10: Exclusion of Time in Legal Proceedings, Section 12. Exclusions in detail.
• Topic 30: Starting Point of Limitation under the Schedule. The third column in practice.