Part III Section 12-24 of Limitation Act, 1963 provides for computation of the period of limitation. They either exclude time of reckoning the period of limitation or postpone starting point of limitation. Sections 12-15 of the Limitation Act provide for the exclusion of time in computing the period of limitation prescribed by law.
Those provisions, inter alia, exclude the following periods:
- The day on which the period of limitation is to be reckoned.
- The day on which the judgment/order/award is pronounced.
- The time spent in obtaining the copy of decree/order/award/ sentence.
- The time spent in prosecuting an application to sue as an indigent person.
- The time spent in proceedings taken bona fide (in good faith) in court having no jurisdiction.
- The time during which stay or injunction operated.
- The time spent in giving notice or for obtaining consent or sanction required by law.
- The time during which there was receiver or liquidator.
- The time during which proceedings to set aside sale were pending (in a suit for possession).
- The time during which the defendant had been out of India.
Sections 16-23 of the Limitation Act, 1963 provide for postponement of limitation. For the application of the law of limitation, there must be a completed cause of action. In other words, there must be a person who can sue, a person who can be sued, and a cause of action on which a suit, appeal or application can be filed. Moreover, such person should be in a position to institute such proceeding without any hindrance, obstruction or impediment.
- The period of limitation will not start running till there is a person who can sue or who can be sued. In the following cases, there is a postponement of limitation, i.e. the period of limitation will not start running.
- In case of fraud or mistake, the period of limitation will not start running till such fraud or mistake is discovered.
- In case of right or liability, a fresh period of limitation will start running from the date of acknowledgment in writing of such right or liability by the party.
- In case of debt, payment will provide a fresh period of limitation from the time of such payment.
- Where after the institution of a suit, a new plaintiff or defendant is added or substituted, the suit shall be deemed to be instituted against him when he was made a party. But if the court is satisfied that such omission was due to bonafide mistake, the suit shall be deemed to have been instituted on any earlier date.
- In case of continuing breach of contract or tort, a fresh period of limitation begins to run every moment till breach or tort continues.
- In a suit for compensation for an act not actionable without special damage, the period of limitation will be computed from the time the injury result.