Report No. 89
Section 3: The Bar of Limitation
3.1. Section.-The bar of limitation.- The operative provisions of the Limitation Act may be said to begin with section 3. Sub-section (1) of this section which constitutes the most important operative provision, enacts that, subject to the provisions contained in sections 4 to 24, every suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed, although limitation has not been set up as a defence. Thus, in the first place, the dismissal of a time-barred proceeding is made mandatory by this provisions: secondly, this is so even if the defendant does not set up limitation as a defence.
Sub-section (2) of section 3 explains, in some detail, in three claus.-(a), (b) and (.-how the proposition laid down in sub-section (1) is to be applied, clause (a) of the sub-section explains when a suit is "instituted" generally, as well as in the case of a claim by a pauper or a claim against a company which is being wound up by the Court. Clause (b) deals with set off and counterclaims, while clause (e) deals with an application by notice of motion in a High Court.
3.2. Recommendation to amend section 3(2)(a)(ii).- While no changes of substance are recommended in section 3, we have one recommendation to make for a verbal change in section 3(2)(a)(ii), in which the expression "a pauper" (occurring at two places) needs to be replaced by the expression "an indigent person", in view of the changed phraseology adopted in the Code of Civil Procedure, 1908 as amended in 1976. We recommend accordingly.