Report No. 97

3.11. Analogy of English law not applicable.-

In this connection, it is also relevant to point out that in England, a clause imposing limitation of the period within which an action can be brought after loss appears to be is valid. Apparently, English law has no rule similar to section 28, Contract Act1 which might invalidate contractual time limits cutting down the period for suing. It has been said2 that (in regard to insurance cases), there is a great deal of sense in the English approach, particularly in the case of fire insurance or insurance against accident where the liability as to the extent of the damage caused when the matters are fresh can he measured with a certain amount of accuracy. If, however, this is a good reason for recognising the validity of contractual clauses extinguishing rights, it should also apply to limitation clauses. If the assumption that in the former case (extinction clauses) lapse of time results in all kinds claims which cannot be determined with exactitude, then identical is the position for limitation clauses.

1. See discussion in Pearl Ins. Co. v. Atma Ram, AIR 1960 Punj 236 (239), para. 8.

2. Ruby Gen Ins. Co. v. Bharat Bank, AIR 1950 HP 350 (353).