Limitation Act 1963 - Schedule - Part IV

Part IV of Limitation Act 1963: Suits Relating to Decrees and Instruments

Part IV of the Schedule to the Limitation Act, 1963 deals with suits relating to decrees and instruments. It contains Articles 59 and 60. These provisions prescribe the limitation period for specified suits concerning cancellation or setting aside of an instrument or decree, rescission of a contract, and transfers of property made by the guardian of a ward.

Important: Part III covers suits relating to declarations under Articles 56 to 58. Part IV begins with Article 59 and is titled "Suits Relating to Decrees and Instruments." Mortgage-related suits begin in Part V with Article 61.

Limitation periods under Part IV

Articles 59 and 60 of the Schedule to the Limitation Act, 1963
Article	Description of suit	Limitation period	Time from which period begins to run
59	To cancel or set aside an instrument or decree or for the rescission of a contract.	Three years	When the facts entitling the plaintiff to have the instrument or decree cancelled or set aside, or the contract rescinded, first become known to the plaintiff.
60(a)	To set aside a transfer of property made by the guardian of a ward, by the ward who has attained majority.	Three years	When the ward attains majority.
60(b)(i)	By the ward's legal representative, when the ward dies within three years from the date of attaining majority.	Three years	When the ward attains majority.
60(b)(ii)	By the ward's legal representative, when the ward dies before attaining majority.	Three years	When the ward dies.

Article 59: Cancellation of instrument or decree and rescission of contract

Article 59 applies to a suit brought to cancel or set aside an instrument or decree, or to obtain rescission of a contract. The prescribed period is three years. The starting point is linked to knowledge: limitation begins when the facts that entitle the plaintiff to seek cancellation, setting aside, or rescission first become known to the plaintiff.

For limitation purposes, the date on which the relevant facts first became known can therefore be material. The precise application of Article 59 depends on the relief claimed, the pleadings, and the facts of the particular case.

Article 60: Transfer of property by guardian of a ward

Article 60 governs a suit to set aside a transfer of property made by the guardian of a ward. Where the ward sues after attaining majority, the limitation period is three years from the date on which the ward attains majority.

If the ward dies and the legal representative brings the suit, Article 60(b) specifies the starting point. Where the ward dies within three years after attaining majority, the period is three years from the ward attaining majority. Where the ward dies before attaining majority, the period is three years from the ward's death.

Meaning of key expressions

Instrument

In Article 59, an instrument generally refers to a formal legal document that records, creates, varies, transfers, limits, extends, extinguishes, or evidences legal rights or liabilities. Whether a particular document requires cancellation or setting aside depends on its legal character and the relief sought.

Decree

A decree is formally defined in Section 2(2) of the Code of Civil Procedure, 1908. In substance, it is the formal expression of an adjudication which, so far as the court expressing it is concerned, conclusively determines the rights of the parties regarding all or any of the matters in controversy in the suit, subject to the statutory inclusions and exclusions in that definition.

Rescission

Rescission means setting aside or undoing a contract in circumstances recognised by law. Article 59 fixes the limitation period for a suit seeking that relief; the substantive right to rescission arises under the applicable contract and specific relief law.

Part III and Part V should not be confused with Part IV

Part III of the Schedule deals with suits relating to declarations and contains Articles 56, 57 and 58. Part V deals with suits relating to immovable property and begins with Article 61, including suits by a mortgagor. Those provisions are separate from Part IV.

Official legal text

The current statutory text should be checked before relying on any limitation period. See the official Limitation Act, 1963 on India Code.

This page provides general legal information. The computation and applicability of limitation can depend on the relief, cause of action, knowledge, disability, exclusion or extension provisions, and the facts of each case.