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Limitation act Notes 3

 

Section 7: Disability of One of Several Persons

Main Provision

  • When several persons are jointly entitled to institute a suit or make an application for execution of a decree, and one of them is under a disability (e.g., minority, insanity, idiocy):

    • If a valid discharge (release from liability) can be given without the concurrence of the disabled person, then time will run against all the persons, including the disabled one.

    • If no valid discharge can be given without the concurrence of the disabled person, then time does not run against any of them until:

      • The disabled person becomes capable of giving a discharge, or

      • The disability ceases to exist.

Explanation I

  • Applies to all kinds of liability, including liability relating to immovable property.

Explanation II

  • In a Hindu Undivided Family (HUF) governed by Mitakshara law:

    • The Manager (Karta) is deemed capable of giving discharge without the concurrence of other members only if he is in actual management of the joint family property.

Section 8: Special Exceptions

Main Provision

  • Sections 6 (Legal disability) and 7 (Disability of one of several persons) do not apply:

    • To suits enforcing rights of pre-emption.

    • To extend the limitation period beyond three years from cessation of disability or from death of the disabled person for any suit or application.

Key Points

  • Maximum extension allowed = 3 years only after disability ends or death occurs.

  • Ensures there is no indefinite extension due to disability.

Section 9: Continuous Running of Time

Main Provision

  • Once the period of limitation starts running, it cannot be stopped by any subsequent disability or inability.

Proviso

  • Exception: Where letters of administration of the estate of a creditor are granted to his debtor, the limitation period is suspended during the administration process.

Rationale

  • Ensures certainty and prevents interruption in limitation once it has started, except for the estate-administration situation.

Section 10: Suits Against Trustees and Their Representatives

Main Provision

  • Despite other provisions of the Act, no time limit applies to:

    • Suits against a person in whom property is vested in trust for a specific purpose.

    • Suits against their legal representatives or assigns (excluding bona fide assigns for valuable consideration).

Types of Suits Covered

  • Following trust property in the hands of trustees/representatives.

  • Recovery of proceeds of trust property.

  • Seeking an account of trust property or proceeds.

Explanation

  • Properties belonging to Hindu, Muslim, or Buddhist religious or charitable endowments are deemed to be held in trust for specific purposes.

  • The manager of such property is considered a trustee for the purposes of this section.

Section 11: Suits on Contracts Entered Outside India or J&K

Subsection (1)

  • Suits instituted in areas where the Limitation Act applies, based on contracts entered into:

    • In the State of Jammu & Kashmir, or

    • In a foreign country,
      are governed by the Limitation Act (Indian rules of limitation).

Subsection (2)

  • Rules of limitation in J&K or foreign country cannot be used as a defence in Indian courts unless:

    • (a) The rule of limitation in the foreign country/J&K has extinguished the contract itself, and

    • (b) The parties to the contract were domiciled in that foreign country/J&K during the entire limitation period prescribed there.

Key Implication

  • Indian limitation law generally applies to foreign or J&K contracts filed within India, unless the foreign/J&K law completely extinguishes the right itself (substantive law, not just procedural bar).

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