Limitation Act 1963 / Sections 17 and 18
Sections 17 and 18 of the Limitation Act 1963: Effect of Fraud, Mistake and Acknowledgment in Writing
Section 17 deals with the effect of fraud, mistake and fraudulent concealment on the commencement of limitation. Section 18 provides for a fresh period of limitation where a qualifying acknowledgment of liability is made in writing and signed before expiry of the prescribed period.
Section 17 - Effect of fraud or mistake
Section 17 modifies when limitation begins in specified cases involving fraud, concealment, mistake or a fraudulently concealed document.
Section 17(1): When limitation begins
The provision applies where a suit or application is based on the fraud of the defendant or respondent or that person's agent; knowledge of the right or title is concealed by fraud; the proceeding seeks relief from the consequences of a mistake; or a document necessary to establish the plaintiff's or applicant's right has been fraudulently concealed.
In the circumstances specified by the section, limitation does not begin until the fraud or mistake is discovered, or could with reasonable diligence have been discovered. For a concealed document, the relevant point is when the plaintiff or applicant first had the means of producing it or compelling its production.
Protection of certain purchasers
The proviso to Section 17 protects certain purchasers for valuable consideration. Broadly, the postponement rule cannot be used to recover, enforce a charge against, or set aside a transaction affecting property purchased for valuable consideration by a person who was not a party to the fraud or mistake and who did not have the knowledge or notice specified in the proviso. The exact statutory conditions should be checked in the official text.
Section 17(2): Execution prevented by fraud or force
Where a judgment-debtor has prevented execution of a decree or order within limitation by fraud or force, the court may extend the period for execution on an application by the judgment-creditor after expiry of that period. The statutory proviso requires the application to be made within one year from discovery of the fraud or cessation of the force, as applicable.
Section 18 - Effect of acknowledgment in writing
Section 18(1): Fresh period of limitation
Where, before expiry of the prescribed period for a suit or application concerning a property or right, an acknowledgment of liability concerning that property or right is made in writing and signed by the party against whom the property or right is claimed, or by a person through whom that party derives title or liability, a fresh period of limitation is computed from the time the acknowledgment was signed.
The timing requirement is important: the acknowledgment contemplated by Section 18 must be made before the prescribed limitation period expires.
Section 18(2): Undated acknowledgment and proof
Where the writing containing the acknowledgment is undated, oral evidence may be given regarding the time at which it was signed. Subject to the applicable law of evidence, oral evidence of the contents of the acknowledgment is not admissible under Section 18(2).
Explanation to Section 18
An acknowledgment may satisfy Section 18 even though it does not specify the exact nature of the property or right, contains statements about the time for payment, delivery, performance or enjoyment, is accompanied by a refusal, is coupled with a claim to set-off, or is addressed to a person other than the person entitled, subject to the statutory explanation.
The word "signed" includes signature personally or by an agent duly authorised in that behalf. The explanation also provides that an application for execution of a decree or order is not deemed to be an application in respect of any property or right for purposes of Section 18.
Practical distinction between Sections 17 and 18
Section 17 principally postpones the commencement of limitation in the circumstances specified by that section. Section 18, by contrast, provides for computation of a fresh limitation period from a qualifying written and signed acknowledgment made before expiry of the prescribed period. The relevant Schedule Article and the facts must therefore be identified before applying either provision.
This article is a general explanation of the statutory provisions and is not a substitute for applying the Act, the relevant Schedule Article, applicable evidence law and binding judicial decisions to the facts of a particular case.