Civil & disputes
What is the limitation period for filing a case in India?
The Limitation Act, 1963 prescribes the period within which a suit, appeal or application must be filed in India. For most contractual and money claims the period is three years from the date the right to sue accrues. A suit for possession of immovable property based on title is generally twelve years. A court must dismiss a suit filed after the prescribed period even if limitation is not raised as a defence, subject to the statutory grounds for exclusion or extension.
Key takeaways
- Three years is the common period for contractual and money claims.
- Time runs from when the right to sue accrues, not from when you decide to act.
- A written acknowledgement of liability before expiry can start a fresh period.
- Limitation bars the remedy; a court must dismiss a time-barred suit even without a plea.
Relevant law and authority
- Limitation Act, 1963, Section 3
- A suit filed after the prescribed period must be dismissed, even if limitation is not set up as a defence.
- Limitation Act, 1963, Section 18
- A written, signed acknowledgement of liability before expiry starts a fresh period.
- Limitation Act, 1963, Section 19
- Part payment of a debt before expiry can start a fresh period.
- Limitation Act, 1963, Section 5
- Condonation of delay for appeals and applications on sufficient cause; not generally available for suits.
- Limitation Act, 1963, Section 17
- Effect of fraud or mistake on the commencement of the period.
Common periods
The Schedule to the Act prescribes different periods for different types of claim. Broadly, compensation for breach of contract is three years from the date of breach; recovery of money lent is three years from the date of the loan or the date fixed for repayment; a suit for the price of goods sold is three years from the date of delivery; and a suit for possession of immovable property based on title is twelve years from when possession became adverse.
Because the article of the Schedule that applies changes the start date as well as the length, the correct classification of the claim matters as much as counting the years.
When time starts running
Limitation runs from the accrual of the cause of action. For a contractual claim this is usually the date of breach, not the date the loss was discovered or the date negotiations broke down. Continuing breaches and recurring obligations are treated differently and can generate a fresh cause of action.
Where a claim is based on fraud or on a mistake, Section 17 may postpone the start of the period until the fraud or mistake is discovered or could with reasonable diligence have been discovered.
What extends or restarts the period
A written and signed acknowledgement of liability made before the period expires starts a fresh period from the date of the acknowledgement under Section 18. Part payment of a debt can have a similar effect under Section 19. An acknowledgement made after expiry does not revive a claim that is already time-barred.
Section 5 allows condonation of delay for appeals and applications on sufficient cause, but it does not generally apply to the institution of suits. Time spent bona fide prosecuting a proceeding in a court without jurisdiction may be excluded under Section 14.
Practical implications
- Fix the date of accrual before doing anything else on a claim.
- Ask for a written acknowledgement of the debt during settlement talks, before the period expires.
- Do not assume negotiation pauses limitation — it does not.
- Check whether an arbitration clause changes the procedural route and the relevant dates.
- Where the deadline is close, prioritise filing and correct the pleading later if necessary.
Common questions
- Does sending a legal notice extend the limitation period?
- No. Issuing a notice does not by itself stop or extend limitation. What can start a fresh period is a written, signed acknowledgement of liability by the other side before the existing period expires, under Section 18 of the Limitation Act, 1963, or part payment of the debt under Section 19. A reply that denies liability plainly has no such effect.
- What happens if a suit is filed after the limitation period?
- Section 3 of the Limitation Act, 1963 requires the court to dismiss a suit instituted after the prescribed period, whether or not limitation has been set up as a defence. The bar operates on the remedy rather than on the underlying right, which is why a time-barred debt can still, for example, be validly paid or acknowledged voluntarily.
- Is the limitation period the same for arbitration?
- The Limitation Act, 1963 applies to arbitrations as it applies to court proceedings. The relevant date is generally when the arbitration is commenced by the request for reference being received by the respondent. Separate and much shorter periods apply to applications to set aside an award, so those timelines should be checked independently.
Related questions
Sources & editorial information
- Jurisdiction
- India
- Last reviewed
- Legal status
- Current
Primary sources
This page is general legal information about Indian law, prepared against identified legal sources. It is not legal advice and does not create a lawyer–client relationship. Apply it to your own facts only after a consultation with a qualified legal professional.
Not sure whether your claim is still in time?
Work through the accrual date, the applicable period and the procedural route for your dispute before the position hardens.