Time Doesn't Stop: Understanding Continuous Running in the Limitation Act

A Guide to Continuous Running and Suspension: Understanding Time Limits under the Limitation Act 1908

Understanding Continuous Running in the Limitation Act

Overview:

The Limitation Act is a statute that sets out the time limits within which legal proceedings must be brought in relation to a specific cause of action.

In general, the Limitation Act aims to ensure that legal disputes are resolved promptly and that the passage of time does not undermine the integrity of legal proceedings. One of the key provisions of the Limitation Act is the concept of "continuous running of time." This refers to the idea that the time limit for bringing a legal claim begins to run from the date that the cause of action arises, and continues to run until the claim is brought or until it is barred by the expiration of the time limit.

Basis of Section 9 of Limitation Act:

This section is founded on the general principle that when once limitation has commenced running, it will continue to do so unless it is stopped by virtue of any express statutory provisions. Once the period of limitation commences it cannot be stopped or be avoided by introducing another cause of action or relief in the suit or by reformulating them

Continuous Running of Time U/S 9 LIMITATION ACT :

The rule as to the continuous running of time is one of the fundamental principles of the law of limitation, this rule says that where once time has begun to run, it runs continuously and without any break or interruption until the entire prescribed period has run out, and no disability or inability to sue, occurring subsequently to the commencement will stop it running. This rule is embodied in section 9 of the Act which applies to suits as well as applications although the words used are inability to sue. 

Scope of Section 9: 

Section 9 is based on the general principle that once time has begun to run, it will continue to do so unless stopped by virtue of any express statutory provision. Section 9 does not affect any exemption from the limitation which may operate without stopping time from running.

ESSENTIALS OF SECTION 9 OF THE LIMITATION ACT:

(i) Time Has Begun to Run:

For the applicability of section 9, it is necessary that time has begun to run. Generally, the time begins to run when the cause of action accrues and the true test to determine when the cause of action has accrued is to ascertain the time when the plaintiff could have first maintained his action to a successful result.

(ii) Disability or Inability to Sue:

This includes disability to make applications for execution as well. Disability means the want of legal qualification to act and inability means the want of physical power to act. This disability is the state of being a minor insane or an idiot, whereas illness, poverty, etc. are instances of inability

(iii) Subsequent Disability or Inability:

To apply this section. it is necessary that the disability or inability must accrue subsequent to the cause of action. 

(iv) Disability or Inability of Plaintiff:

The expression disability or inability to sue refers to something which pertains to the plaintiff.

The Proviso of section 9 of the Limitation Act:

The proviso applies only to an Administrator under the grant of letters where he is a debtor of the deceased. It does not apply to a case where there has been a fusion of interests of the mortgagor and the mortgagee in the same person.

if a creditor (a person or entity to whom a debt is owed) passes away and the debtor (the person or entity who owes the debt) is appointed as the administrator of the creditor's estate, the time limit for the debtor to bring a legal action to recover the debt is suspended while the administration of the estate continues. In other words, if the creditor dies and the debtor is appointed to manage the creditor's estate, the debtor will not need to worry about the time limit for bringing legal action to recover the debt expiring while the estate is being settled. This provision is intended to allow the debtor to focus on managing the creditor's estate in a fair and orderly manner, without the added pressure of having to worry about the time limit for recovering the debt.

Example of the Proviso:

Suppose that a person (the creditor) is owed a debt by another person (the debtor). The creditor passes away, and the debtor is granted letters of administration to the creditor's estate.

Under the proviso, the time limit for bringing a legal claim to recover the debt is suspended while the administration of the creditor's estate continues. This means that the time limit for bringing the claim will not begin to run until the administration of the estate is completed.

For example, if the time limit for bringing a claim to recover the debt is six years, and the administration of the creditor's estate takes three years to complete, the debtor will have an additional three years to bring the claim once the administration is finished.

It is worth noting that this proviso only applies in situations where the creditor's estate is being administered by the debtor. If the creditor's estate is being administered by someone else (such as a different family member or a professional administrator), the time limit for bringing a claim to recover the debt will not be suspended.

Exceptions to The Rule of Continuous Running of Time Under Section 9

Letters of Administration

According to the proviso to section 9, where letters of administration to the estate of a creditor are granted to his debtor, the running of the time prescribed for a suit to recover the debt shall be suspended, while the administration continues.

Principle Of The Proviso: 

The principle of the proviso is that when the right to sue and the right to be sued vest and unite by any act of law in the same person, the running of the time will be suspended during such union of rights. 

(ii) Period of Limitation Prescribed For Appeal Or Application : 

In computing the period of limitation prescribed for an appeal, an application for leave to appeal, and an application for a review of the judgment, the time requisite for obtaining a copy of the decree, sentence, or order appealed from or sought to be reviewed shall be excluded. Likewise, in the case of an application to set aside an award, the time requisite for obtaining a copy of the award shall be excluded.

(iii) Absence of Defendant: 

In computing the period of limitation prescribed for any suit, the time during which the defendant has been absent from Pakistan and from the territories beyond Pakistan, under the administration of the Federal Government Shall be excluded.

(iv) Court Without Jurisdiction:

In computing the period of limitation prescribed for any suit or application, the time during which the plaintiff or applicant has been prosecuting with due diligence another civil proceeding, against the same party in good faith in a court having no jurisdiction, shall be excluded.

Case Law: (2002 SCMR 144] 

Provision of section 14 of Limitation Act, 1908 applies to a case where the court by its own order has terminated the suit or proceedings on the ground that it has no jurisdiction to entertain it or that there is some other cause of like nature which makes it impossible for the court to entertain it.

(v) Suspension of Proceedings Under Injunction or Order: 

When an injunction order has been obtained to stay the institution of a suit. In computing the period of limitation prescribed for any suit or application for the execution of a decree, the institution or execution of which has been stayed by injunction or order, the time of the continuance of the injunction or order, the day on which it was issued or made and the day on which it was withdrawn shall be excluded.

(vi) Period of Notice: 

When notice has been given before the institution of the suit in accordance with the law. The limitation shall be suspended during the period of notice. In computing, the period of limitation prescribed for any suit of which notice has been given in accordance with the requirements of any enactment for the time being in force, the period of such notice shall be excluded.

(vii) Suit for Possession: 

In a suit for possession by a purchaser at the execution of the sale, the limitation shall be suspended during the time for which the proceeding to set aside the sale has been prosecuted The period of limitation for a suit for possession by an auction purchaser shall be suspended during the time for which the proceedings to set aside the sale have been prosecuted.

Suspension Or Modification of The Ordinary Law of Limitation: 

There is no principle of law outside the Limitation Act under which limitation can be suspended and exemptions, which are not provided by the statute, can be assumed either on grounds of hardships or of reasonableness.

However, the Courts do recognize the general principle of suspension of limitation and right of action in cases where a party is prevented under certain circumstances from taking action in pursuance of his rights. In each case, the Court is to find out if there are any special circumstances that can suspend or modify the ordinary law of limitation as applicable to a particular case.

For example: 
  • (i): Where the rights of the litigant have been duly set aside and thereafter the decision is reserved. 
  • (i) Where the decree is in such a form and the circumstances are such that it is incapable of execution except on the happening of certain events. 
  • (ii) Whereby some provisions of enactment, the institution of the suit or the making of application has been suspended. 
  • (iv) Where the execution of the decree has been suspended by no act or default of the decree-holder. 
  • (v) Where the rights of the parties have been determined by passing a criminal decree in a partition action and then the party takes no steps. 
  • (vi) Where the rights of the parties to have the number of mesne profits calculated or determined by a decree and the applicants take no further steps. 
  • (vii) Where a collateral proceeding decided in the meantime prevents the reaping of fruit. 

Cases in Which Limitation Is Interrupted: 

  • (i) Continuing Bleach:
  • In the case of a continuing breach of contract and in the case of a continuing wrong independent of the contract, a fresh period of limitation begins to run at every moment of the time during which the breach or the wrong, as the case may be, continues
  • (ii) Payment: Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy, or by his duly authorized agent, a fresh period of limitation shall be computed from the time when the payment was made
  • (iii) Receipt of Mortgage:
  • Receipt of the produce of mortgage land by the mortgage in possession. 
  • (iv) Written Acknowledgement: Written acknowledgment of liability signed by the defendant. 

Cases in Which Limitation is Extended:: 

(i) Court’s Holiday:
Where the court is closed when the period of limitation expires. 
(ii) Court’s Satisfaction:
Where the appellant satisfied the court that he has sufficient cause for not preferring the appeal within the period of limitation.

Cases in Which Limitations Do Not Run at All: (Section 10) 

Suits against express trustees and their representatives.

No suit against a person in whom property has become vested in trust for any specific purpose, or against his legal representatives or assigns (not being assigned for valuable consideration), for the purpose of following in his or their hands such property or the proceeds thereof, or for an account of such property or proceeds, shall be barred by any length of time. In such a case limitation does not run at all. 

CONCLUSION:

To conclude that the rule of section 9 of the Limitation Act, of 1908 says that once time has begun to run, it continues to do so until the entire prescribed period has run out. This rule of section 9 is applicable to suits as well as applications. This rule is subject to certain exceptions where time may be suspended for a certain time. These are, however, certain circumstances which suspend interrupt or extend the run of the limitation and there are certain cases where the limitation does not run at all

Relevant important questions from the examination point of view:

Explain the statement When time starts running it shall not be stopped by a subsequent event.
Discuss the law of continuation of the limitation period.

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