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1. Introduction
The Limitation Act, 1963, provides specific provisions for legal disabilities and acknowledgment to ensure fairness in the application of time limits. These mechanisms protect the rights of vulnerable individuals and allow the reset of limitation periods under certain circumstances.
2. Legal Disability
2.1 Legal Framework
• Governed by Section 6 of the Limitation Act, 1963.
2.2 Definition
• A person under a legal disability is someone who cannot institute a suit or application due to:
1. Minority:
• Individuals under 18 years of age.
2. Unsound Mind:
• Individuals incapable of making decisions due to mental incapacity.
3. Legal Disqualification:
• Specific legal barriers preventing action.
2.3 Effect of Legal Disability on Limitation
1. Postponement of Limitation:
• The limitation period does not run during the disability.
• Example:
• A minor inherits property but cannot file a suit for possession until attaining majority.
2. Commencement of Limitation:
• Time begins to run once the disability ceases.
• Example:
• A person of unsound mind regains mental capacity; the limitation period begins from that date.
2.4 Multiple Disabilities
• Section 7:
• If multiple disabilities coexist, limitation starts only after all disabilities cease.
2.5 Exceptions
1. Legal Representatives:
• If a person under disability dies, their legal representatives can initiate proceedings.
2. Long-Term Disabilities:
• A suit cannot be filed if it is barred for reasons other than the disability.
• Example:
• If the cause of action arose 30 years ago, even a legal disability cannot extend limitation indefinitely.
2.6 Landmark Case Law
• M.M. Veerappa v. Canara Bank, AIR 1998 SC 1101:
• Clarified that the provision for disability ensures equitable access to justice but does not nullify the fundamental principles of limitation.
3. Acknowledgment
3.1 Legal Framework
• Governed by Section 18 of the Limitation Act, 1963.
3.2 Definition
• Acknowledgment refers to a debtor’s explicit or implicit recognition of liability, which resets the limitation period for a claim.
3.3 Conditions for Acknowledgment
1. In Writing:
• The acknowledgment must be in writing and signed by the party against whom the claim is made.
• Example:
• A debtor writes a letter admitting the outstanding loan amount.
2. Before Expiry of Limitation:
• The acknowledgment must be made within the original limitation period.
3. Clear and Unambiguous:
• The acknowledgment should clearly admit the existence of a debt or liability.
• Example:
• Statements like “I owe ₹50,000” are valid, but vague statements are insufficient.
3.4 Effect of Acknowledgment
1. Fresh Limitation Period:
• A new limitation period starts from the date of acknowledgment.
• Example:
• A debt due on 01-01-2020 has a limitation period of three years. If the debtor acknowledges the debt in writing on 01-01-2022, a fresh three-year period begins.
2. Part Payment:
• Section 19: Part payment of a debt has the same effect as acknowledgment, resetting the limitation period.
3.5 Landmark Case Law
• Tilak Ram v. Nathu, AIR 1967 SC 935:
• Held that acknowledgment must be unambiguous and made before the expiry of the limitation period.
4. Practical Examples
1. Legal Disability:
• A minor inherits disputed property in 2015. The limitation period to file a suit for possession starts in 2025 when the minor turns 18.
2. Acknowledgment:
• A borrower acknowledges a loan in writing two years after default. The limitation resets, giving the lender another three years to file a recovery suit.
3. Part Payment:
• A debtor repays ₹10,000 towards an outstanding ₹50,000 loan. The limitation period resets from the date of payment.
5. Common Pitfalls to Avoid
1. Overlooking Disability Exceptions:
• Not recognizing legal disabilities can lead to premature dismissal of valid claims.
2. Misinterpreting Acknowledgment:
• Vague or oral acknowledgments are not sufficient under the law.
3. Ignoring Timeframes:
• Acknowledgment after the limitation period has expired does not reset the clock.
6. Comparative Overview
Aspect Legal Disability Acknowledgment
Legal Basis Section 6 of the Limitation Act Section 18 of the Limitation Act
Purpose Protects rights of vulnerable individuals. Allows resetting of limitation for liabilities.
Effect Postpones the start of limitation. Restarts limitation from acknowledgment date.
Examples Minority, unsound mind. Written acknowledgment of debt.