Rule 2 of CPC : Rule 2: Limitation law not affected by first suit.

Explanation using Example

Example 1:

Ravi files a lawsuit against Shyam for breach of contract on January 1, 2020. However, Ravi realizes that he made some errors in his initial filing and decides to withdraw the suit on March 1, 2020, with the court's permission to file a fresh suit. Ravi then files a new lawsuit on April 1, 2020. According to Rule 2 of Order XXIII of the Code of Civil Procedure 1908, the new lawsuit will be subject to the same limitation period as if the first suit had never been filed. If the limitation period for breach of contract is three years, Ravi must ensure that his new suit is filed within three years from the date the cause of action arose, not from the date of the first suit.

Example 2:

Anita files a suit against her neighbor, Sunil, for encroachment on her property on February 1, 2019. Later, she realizes that she needs to gather more evidence and withdraws the suit on June 1, 2019, with the court's permission to file a fresh suit. Anita then files a new suit on July 1, 2019. According to Rule 2 of Order XXIII of the Code of Civil Procedure 1908, the new suit will be subject to the same limitation period as if the first suit had never been filed. If the limitation period for property encroachment is twelve years, Anita must ensure that her new suit is filed within twelve years from the date the encroachment occurred, not from the date of the first suit.