Section 3 of LA : Section 3: Bar Of Limitation

Explanation using Example

Imagine a scenario where an individual, Mr. Sharma, had a contract with a company to deliver goods by January 1, 2019. The company failed to pay for the goods upon delivery. Mr. Sharma has a period of three years from the due date of payment to file a suit for the recovery of his payment according to the Limitation Act. However, Mr. Sharma, unaware of the limitation period, decides to file the suit on February 15, 2022.

Under Section 3 of the Limitation Act, 1963, the court is obliged to dismiss Mr. Sharma's suit for being instituted after the prescribed period of limitation, which ended on January 1, 2022, even if the company does not raise the defense of limitation. This demonstrates the strict application of the law, mandating the dismissal of actions brought after the legal time limit has expired.