The Limitation Act, 1995

Preliminary

Short title, extent and commencement.-

1. (1) This Act may be called the Limitation Act No. IX of 1995.
2. (2) It extends to the whole of Jammu and Kashmir State including the Ilaqas of Poonch and Cherlani.
3. (3) It shall come into force one year after the date when after receiving the assent of His Highness the Maharaja Bahadur it is published in the Government Gazette.

Definitions.-In this Act, unless there is anything repugnant in the subject or context,-

1. (1) "applicant" includes any person from or through whom an applicant derives his right to apply;
2. (2) "bills of exchange" includes a hundi, brat and a cheque;
3. (3) "bond" includes any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;
4. (4) "defendant" includes any person from or through whom a defendant derives his liability to be sued;
5. (5) omitted;
6. (6) "foreign country" means any country;
7. (7) "good faith" nothing shall be deemed to be done in good faith which is not done with due care and attention;
8. (8) "plaintiff" includes any person from or through whom a plaintiff derives his right to sue;
9. (9) "promissory note" means any instrument whereby the maker engages absolutely to pay a specified sum of money to another at a time therein limited, or on demand, or at sight;
10. (10) "suit" does not include an appeal or an application; and
11. (11) "trustee" does not include a benamindar, a mortgagee remaining in possession after the mortgagee has been satisfied, or a wrong-doer in possession without title.

Limitation of Suits, Appeals and Applications

Dismissal of suits, etc., instituted, etc. after period of limitation.-Subject to the provisions contained in sections 4 to 25 (inclusive), every suit instituted, appeal preferred, and application made, after the period of limitation prescribed therefor by the first Schedule shall be dismissed, although limitation has not been set up as a defence. Explanation.-A suit is instituted, in ordinary cases, when the plaint is presented to the proper officer; in the case of a pauper, when his application for leave to sue as a pauper is made; and, in the case of a claim against a company which is being wound up by the Court, when the claimant first sends in his claim to the official liquidator.

Where Court is closed when period expires.-Where the period of limitation prescribed for any suit, appeal or application expires on a day when the Court is closed, the suit, appeal or application may be instituted, preferred or made on the day that the Court re-opens.

Extension of period in certain cases.-An appeal or an application for a review of a judgment or for leave to appeal or an application to set aside an order of dismissal of a suit for plaintiff's default or an application to set aside a decree passed ex-parte in an original suit or appeal or an application to bring the heirs of a deceased party on the record or an application to set aside an order of abatement of a suit or appeal or any other application to which this section may be made applicable by or under an enactment for the time being in force may be admitted after the period of limitation prescribed therefor, when the appellant or applicant satisfies the Court that he had sufficient cause for not preferring the appeal or making the application within such period. Explanation.-The fact the appellant or applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period of limitation may be sufficient cause within the meaning of this section.

Legal disability.

1. (1) Where a person entitled to institute a suit or make an application for the execution of a decree is, at the time from which the period of limitation is to be reckoned, a minor, or insane, or an idiot, he may institute the suit or make the application within the same period after the disability has ceased, as would otherwise have been allowed from the time prescribed therefor in the third column of the first Schedule.
2. (2) Where such person is, at the time from which the period of limitation is to be reckoned, affected by two such disabilities, or where, before his disability has ceased, he is affected by another disability, he may institute the suit or make the application within the same period, after both disabilities have ceased, as would otherwise have been allowed from the time so prescribed.
3. (3) Where the disability continues up to the death of such person, his legal representative may institute the suit or make the application within the same period after the death as would otherwise have been allowed from the time so prescribed.
4. (4) Where such representative is at the date of the death affected by any such disability, the rules contained in sub-sections
5. (1) and
6. (2) shall apply.
   • (a) A right to sue accrues to X during his minority. X attains majority four years after such accruer. He may institute his suit at any time within three years from the date of his attaining majority.
7. (5) A right to sue accrues to X during his minority. After the accruer, but while X is still a minor, he becomes insane. Time runs against Y from the date when his insanity and minority cease.
   • (c) A right to sue accrues to X during his minority. X dies before attaining majority, and is succeeded by Y, his minor son.

Disability of one of several plaintiffs or applicants Disability of one of several plaintiffs or applicants.-Where one or several persons jointly entitled to institute a suit or make an application for execution of a decree is under any such disability, and a discharge can be given without the concurrence of such person, time will run against them all : but, where no such discharge can be given, time will not run as against any of them until one of them becomes capable of giving such discharge without the concurrence of the others or until the disability has ended. Illustrations

1. (a) A incurs a debt to a firm of which B, C and D are partners. D is insane, and C is a minor. B can give a discharge of the debt without the concurrence of D and C. Time runs against B, C and D.
2. (b) A incurs a debt to a firm of which E, F and G are partners, E and F are insane, and G is a minor.

Special exceptions Special exceptions.-Nothing in section 6 or in section 7 applies to suits to enforce rights of prior purchase, or shall be deemed to extend, for more than three years from the cessation of the disability or the death of the person affected thereby, the period within which any suit shall be instituted or application made. Illustrations

1. (a) A, to whom a right to sue for a legacy has accrued during his minority, attains majority eleven years after such accruer. A has, under the ordinary law, only one year remaining within which to sue. But under section 6 and this section an extension of two years will be allowed to him, making in all a period of three years from the date of his attaining majority, within which he may bring his suit.
2. (b) A right to sue for an hereditary office accrues to A who at the time is insane. Six years after the accruer A recovers his reason. A has six years, under the ordinary law, from the date when his insanity ceased within which to institute a suit. No extension of time will be given him under section 6 read with this section.
3. (c) A right to sue as landlord to recover possession from a tenant accrues to A, who is an idiot. A dies three years after the accruer, his idiocy continuing up to the date of his death. A's representative-in-interest has, under ordinary law, nine years from the date of A's death within which to bring a suit.

Continuous running of time Continuous running of time.-Where once time has begun to run, no subsequent disability or inability to sue stops it: Provided that, where letters of administration to the estate of a creditor have been granted to his debtor, the running of the time prescribed for the suit to recover the debt shall be suspended while the administration continues.

Suits against express trustees and their representatives.-Notwithstanding anything hereinbefore contained, no suit against a person in whom property has become vested in trust for any specific purpose, or against his legal representatives or assigns (not being assigns for valuable consideration), for the purpose of following in his or their hands such property, or the proceeds thereof or for an account of such property or proceeds, shall be barred by any length of time. For the purposes of this section any property comprised in a Hindu, Mohammedan, Budhist religious or charitable endowment shall be deemed to be property vested in trust for a specific purpose, and the manager of any such property shall be deemed to be the trustee thereof.

Suits on foreign contracts.-

1. (1) Suits instituted in the State on contracts entered into in a foreign country are subject to the rules of limitation contained in this Act.
2. (2) No foreign rule of limitation shall be a defence to a suit instituted in the State on a contract entered into in a foreign country, unless the rule has extinguished the contract and the parties were domiciled in such country during the period prescribed by such rule.

Computation of Period of Limitation

Exclusion of time in legal proceedings.—(1) In computing the period of limitation prescribed for any suit, appeal or application, the day from which such period is to be reckoned shall be excluded.

1. (2) In computing the period of limitation prescribed for an appeal, an application for leave to appeal and an application for a review of judgment, the day on which the judgment complained of was pronounced, and the time requisite for obtaining a copy of the decree, sentence or order appealed from or sought to be reviewed, shall be excluded, In an appeal from an appellate decree or order so much of the time requisite for obtaining a copy of the judgment of the Court of first instance for the purpose of being field with the memorandum of appeal shall also be excluded as may be in excess of the time spent in obtaining a copy of the decree or order appealed against and that of the judgment on which the said decree is founded, but no part of the time common to the copies shall be counted twice over.
2. (3) Where a decree is appealed from or sought to be reviewed, the time requisite for obtaining a copy of the judgment on which it is founded shall also be excluded. Where in filing a second appeal it is incumbent on the appellant to file a copy of the judgment of the first Court, the time requisite for obtaining such copy shall be excluded.
3. (4) In computing the period of limitation prescribed for an application to set aside an award, the time requisite for obtaining a copy of the award shall be excluded. Explanation.—The time requisite for obtaining a copy will be the time between the date when the estimated cost of a copy is paid in by the applicant in accordance with the order passed in this respect and the date when the copy is ready and a notice is put up notifying the fact.

Exclusion of time of defendants absence from the State Exclusion of time of defendant's absence from the State.—In computing the period of limitation prescribed for any suit, the time during which the defendant has been absent from the State shall be excluded.

Exclusion of time of proceeding bona fide in Court without jurisdiction.—(1) In computing the period of limitation prescribed for any suit, the time during which the plaintiff has been prosecuting with due diligence another civil proceeding, whether in a Court of first instance or in a Court of appeal, against the defendant, shall be excluded, where the proceeding is founded upon the same cause of action and is prosecuted in good faith in a Court which, from defect of jurisdiction, or other cause of a like nature, is unable to entertain it.

1. (2) In computing the period of limitation prescribed for any application, the time during which the applicant has been prosecuting with due diligence another civil proceeding, whether in a Court of first instance or in a Court of appeal, against the same party for the same relief shall be excluded, where such proceeding is prosecuted in good faith in a Court which from defect of jurisdiction or other cause of a like nature, is unable to entertain it. Explanation I.—In excluding the time during which a former suit or application was pending, the day on which that suit or application was instituted or made, and the day on which the proceeding therein ended, shall both be counted. Explanation II.—For the purposes of this section, a plaintiff or an applicant resisting an appeal shall be deemed to be prosecuting a proceeding. Explanation III.—For the purposes of this section misjoinder of parties or of causes of action shall be deemed to be a cause of like nature with defect of jurisdiction. Explanation IV.—In suitable cases proceedings in the Revenue Department may come within the expression civil proceedings as used in the section.

Exclusion of time during which proceedings are suspended.—(1) In computing the period of limitation prescribed for any suit or application for the execution of a decree, the institution or execution of which has been stayed by injunction or order, the time of the continuance of the injunction or order, the day on which it was issued or made, and the day on which it was withdrawn, shall be excluded.

1. (2) In computing the period of limitation prescribed for any suit of which notice has been given in accordance with the requirements of any enactment for the time being in force, the period of such notice shall be excluded.

Exclusion of time during which proceedings to set aside execution sale are pending.—In computing the period of limitation prescribed for a suit for possession by a purchaser at a sale in execution of a decree, the time during which a proceeding to set aside the sale has been prosecuted shall be excluded.

Effect of death before right to sue accrues.—(1) Where a person, who would, if he were living, have a right to institute a suit or make an application, dies before the right accrues, the period of limitation shall be computed from the time when there is a legal representative of the deceased capable of instituting or making such suit or application.

1. (2) Where a person against whom, if he were living, a right to institute a suit or make an application would have accrued dies before the right accrues, the period of limitation shall be computed from the time when there is a legal representative of the deceased against whom the plaintiff may institute or make such suit or application.
2. (3) Nothing in sub-sections
3. (1) and
4. (2) applies to suits to enforce rights of prior purchase or to suits for the possession of immovable property or of an hereditary office.

Effect of fraud.—Where any person having a right to institute a suit or make an application has, by means of fraud, been kept from the knowledge of such right or of the title on which it is founded, or where any document necessary to establish such right has been fraudulently concealed from him, the time limited for instituting a suit or making an application—

1. (a) against the person guilty of the fraud or accessory thereto, or
2. (b) against any person claiming through him otherwise than in good faith and for a valuable consideration, shall be computed from the time when the fraud first became known to the person injuriously affected thereby or, in the case of the concealed document, when he first had the means of producing it or compelling its production.

Effect of acknowledgement in writing.--(1) Where before, the expiration of the period prescribed for a suit or application in respect of any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by some person through whom he derives title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.

1. (2) Where the writing containing the acknowledgment is undated, oral evidence may be given of the time when it was signed ; but, subject to the provisions of the Evidence Act (XIII of 1977), oral evidence of its contents shall not be received. Explanation 1.-For the purposes of this section an acknowledgment may be sufficient though it omits to specify the exact nature of the property or right, or avers that the time for payment, delivery, performance or enjoyment has not yet come, or is accompanied by a refusal to pay, deliver, perform or permit to enjoy, or is coupled with a claim to a set-off, or is addressed to a person either than the person entitled to the property or right. Explanation II.-For the purposes of this section, "signed" means signed either personally or by an agent duly authorised in this behalf. Explanation III.-For the purposes of this section an application for the execution of a decree or order is an application in respect of a right.

Effect of payment of interest as such or of part payment of principal.-(1) Where interest on a debt or legacy is, before the expiration of the prescribed period, paid as such by the person liable to pay the debt or legacy, or by his agent duly authorised in this behalf, or where part of the principal of a debt is, before the expiration of the prescribed period, paid by the debtor or by his agent duly authorised in this behalf, a fresh period of limitation shall be computed from the time when the payment was made : Provided that, an acknowledgement of the payment appears in the handwriting of, or in a writing signed by the person making the payment.

1. (2) Effect of receipt of produce of mortgaged land.--Where mortgaged land is in the possession of mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment for the purpose of sub-section (1). Explanation.-Debt includes money payable under a decree or order of Court.

Agent of person under disability.-(1) The expression "agent duly authorised in this behalf", in sections 19 and 20, shall, in the case of a person under disability, include his lawful guardian, committee or manager, or an agent duly authorised by such guardian, committee or manager to sign the acknowledgement or make the payment.

1. (2) Acknowledgement or payment by one of several joint contractors etc.-Nothing in the said sections renders one of several joint contractors, partners, executors or mortgagees chargeable by reason only of a written acknowledgment signed or of payment made by, or by the agent of, any other or others of them.
2. (3) For the purposes of the said sections-
   • (a) an acknowledgement signed, or payment made, in respect of any liability, by, or by the duly authorised agent of, any widow or other limited owner of property who is governed by the Hindu law, shall be a valid acknowledgement or payment, as the case may be, as against reversioner succeeding to such liability ; and
   • (b) where a liability has been incurred by, or on behalf of, a Hindu undivided family as such, an acknowledgement or payment made by, or by the duly authorised agent of, the manager of the family for the time being shall be deemed to have been made on behalf of the whole family.

Effect of substituting or adding new plaintiff or defendant.--(1) Where, after the institution of a suit, a new plaintiff or defendant is substituted or added, the suit shall, as regards him, be deemed to have been instituted when he was so made a party.

1. (2) Nothing in sub-section
2. (1) shall apply to a case where a party is added or substituted owing to an assignment or devolution of any interest during the pendency of a suit or where a plaintiff is made a defendant or a defendant is made a plaintiff.

Continuing breaches and wrongs.--In the case of a continuing breach of contract and in the case of a continuing wrong independent of contract, a fresh period of limitation begins to run at every moment of the time during which the breach or the wrong, as the case may be, continues.

Suit for compensation for act not actionable without special damage.-In the case of a suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results therefrom, the period of limitation shall be computed from the time when the injury results. Illustration A owns the surface of a field. B owns the sub-soil. B digs coal thereout without causing any immediate apparent injury to the surface ; but at last the surface subsides.

Computation of time mentioned in instruments Computation of time mentioned in instruments.-All instruments shall for the purpose of this Act be deemed to be made with reference to the 1 [Gregorian] calendar. Illustration

1. (a) A Hindu makes a promissory note bearing a native date only, and payable four months after date. The period of limitation applicable to a suit on the note runs from the expiration of four months after date computed according to the 1 [Gregorian] calendar.
2. (a) A Hindu makes a bond, bearing a native date only, for the repayment of money within one year. The period of limitation applicable to a suit on the bond runs from the expiration of one year after date computed according to the 1 [Gregorian] calendar.

Acquisition of Ownership by Possession

²⁶ Omitted

Omitted.

27.

Extinguishment of right to property Extinguishment of right to property.-At the determination of the period hereby limited to any person for instituting a suit for possession of any property, his right to such property shall be extinguished.

Saving and Repeals

Savings.--(1) Nothing in this Act shall affect section 25 of the Contract Act (IX of 1917).

1. (2) Where any special or local law prescribes for any suit, appeal or application a period of limitation different from the period prescribed therefor by the first Schedule, the provisions of section 3 shall apply, as if such period were prescribed therefor in that Schedule, and for the purpose of determining any period of limitation prescribed for any suit, appeal or application by any special or local law--
   • (a) the provisions contained in section 4, sections 9 to 18 and section 22 shall apply only in so far as, and to the extent to which, they are not expressly excluded by such special or local law: and
   • (b) the remaining provisions of this Act shall not apply.

Provision for suits for which the period prescribed is shorter than that prescribed by the Limitation Regulation of 1977.--Notwithstanding anything herein contained, any suit for which the period of limitation prescribed by this Act is shorter than the period of limitation prescribed by the Limitation Regulation, 1977, may be instituted within the period of 14 years this comes into force or within the period prescribed for such quit by the Limitation Regulation of 1977, whichever period expires first.

Saving of limitation as regards pending suits.--No suit, appeal or other proceeding pending in any Court at the date of the commencement of this Act shall be dismissed on the ground that it is barred by limitation, provided it was not so barred at the date of its institution under the Limitation Regulation of 1977

Repeal.--The Limitation Regulation XXIV of 1977 is hereby repealed

Continuing breaches and wrongs.--In the case of a continuing breach of contract and in the case of a continuing wrong independent of contract, a fresh period of limitation begins to run at every moment of the time during which the breach or the wrong, as the case may be, continues.

Suit for compensation for act not actionable without special damage.-In the case of a suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results therefrom, the period of limitation shall be computed from the time when the injury results. Illustration A owns the surface of a field. B owns the sub-soil. B digs coal thereout without causing any immediate apparent injury to the surface ; but at last the surface subsides. The period of limitation in the case of a suit by A against B runs from the time of the subsidence.

Saving and Repeals

Savings.--(1) Nothing in this Act shall affect section 25 of the Contract Act (IX of 1917).

1. (2) Where any special or local law prescribes for any suit, appeal or application a period of limitation different from the period prescribed therefor by the first Schedule, the provisions of section 3 shall apply, as if such period were prescribed therefor in that Schedule, and for the purpose of determining any period of limitation prescribed for any suit, appeal or application by any special or local law--
   • (a) the provisions contained in section 4, sections 9 to 18 and section 22 shall apply only in so far as, and to the extent to which, they are not expressly excluded by such special or local law: and
   • (b) the remaining provisions of this Act shall not apply.

Provision for suits for which the period prescribed is shorter than that prescribed by the Limitation Regulation of 1977.--Notwithstanding anything herein contained, any suit for which the period of limitation prescribed by this Act is shorter than the period of limitation prescribed by the Limitation Regulation, 1977, may be instituted within the period of 14 years this comes into force or within the period prescribed for such quit by the Limitation Regulation of 1977, whichever period expires first.

Saving of limitation as regards pending suits.--No suit, appeal or other proceeding pending in any Court at the date of the commencement of this Act shall be dismissed on the ground that it is barred by limitation, provided it was not so barred at the date of its institution under the Limitation Regulation of 1977

Repeal.--The Limitation Regulation XXIV of 1977 is hereby repealed