CAIIB · BRBL

LAW OF LIMITATION 1963

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What is the primary objective of the Limitation Act, 1963?

A

The Limitation Act, 1963 prescribes time limits within which legal proceedings must be initiated, ensuring that stale claims are not entertained by courts and promoting legal certainty.

Q

What is the general limitation period for suits not specifically covered under the Limitation Act?

A

Three years from the date the right to sue accrues.

Q

What is the limitation period for a suit to recover money lent under a simple contract?

A

The limitation period is 3 years from the date the money becomes due and payable under a simple contract of loan.

Q

What is the limitation period for a suit to recover money due on a bond?

A

Twelve years from the date the money becomes due.

Q

What is the limitation period for enforcing a mortgage by sale or foreclosure?

A

The limitation period for a suit to enforce a mortgage by sale or foreclosure is 12 years from the date the money secured by the mortgage becomes due.

Q

Under which article of the Limitation Act does a suit on an open account fall?

A

Article 1, with a three-year limitation period.

Q

What is the limitation period for a suit based on a promissory note or bill of exchange?

A

The limitation period is 3 years from the date the promissory note or bill of exchange falls due for payment.

Q

What is the limitation period for a suit on a foreign judgment?

A

Three years from the date the judgment becomes enforceable.

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