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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Limitation

A suit on a contract made in a foreign country is filed in an Indian court covered by the Limitation Act, 1963. The foreign limitation rule has barred the remedy but has not extinguished the contract, and the parties were domiciled in that country throughout. What is the position?

The foreign rule is not a defence. A foreign limitation rule defeats a suit in India only if it extinguished the contract and the parties were domiciled there during the period. Here it did not extinguish the contract, so the Indian Act's limitation rules govern.

  1. AThe foreign rule is not a defence, because it did not extinguish the contract, and the Indian Act's limitation rules govern the suitCorrect
  2. BThe foreign rule is a defence because the parties were domiciled there
  3. CThe suit fails because foreign contracts are outside the Act
  4. DThe foreign rule is a defence if the suit was filed in India after the foreign period ended

Explanation

Section 11(1) subjects such suits to the rules of limitation in the Act. Under section 11(2) a foreign rule is a defence only if it extinguished the contract and the parties were domiciled there during its period. Both conditions must be met; here the first fails, so domicile alone does not help.

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