Question

Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: Limitation bars the remedy, not the right.
FACTUAL SITUATION: After the expiry of the limitation of three years, debtor Rohan makes a part payment of debt to creditor, Sohan. Sohan then files a suit against Rohan for recovery of the debt two years from the date of part payment.
Decide.

• A. Part payment extends the period of limitation
• B. The suit is time-barred as part payment is made after the expiry of the period of limitation
• C. Fresh period of limitation begins from the date of part payment
• D. None of the above

Answer 1

Answer: (B)

The suit is time-barred as part payment is made after the expiry of the period of limitation

The legal Principle means that limitation bars the remedy, ie. the right to file a suit and the suit cannot be filed after the time has lapsed. This, however, does not mean that the right to recover is also barred. For instance, A advances loans to C in every six months and enters this entry into his Book of accounts.

Now, since the limitation to file a suit to a Civil Court lies within 3 years of the cause of action. So, A cannot file a suit for the first amount that was advanced by A to C as it is barred by the Limitation Act, but this doesn't mean that A does not have the right to recover the said amount from C. A will have the right to recover the amount of the first installment of C by any other means for example selling off the security advanced by C to A.

Here, Rohan made part payment of debt to Sohan. Now Sohan files a suit against Rohan for recovery of debt 2 years from the date of part payment. That means that Sohan has filed a suit after 5 years of the lending of the debt.

And therefore, the remedy i.e. filing of a suit is time-barred.