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

Ramesh sued Suresh on a promissory note. The suit was based on Suresh's fraud, which Ramesh learnt about only on 1 March. Under the Limitation Act, 1963, when does limitation begin to run for this suit?

Limitation starts when Ramesh discovered the fraud or could, with reasonable diligence, have discovered it. Section 17(1) postpones the start of the period in suits based on the defendant's fraud, so the date of the fraud or of the note does not control.

  1. AFrom the date the fraud was committed
  2. BFrom the date Ramesh discovered the fraud or could, with reasonable diligence, have discovered itCorrect
  3. CFrom the date the promissory note was signed
  4. DFrom the date Suresh first denied liability

Explanation

Section 17(1) provides that where a suit is based on the defendant's fraud, limitation does not begin to run until the plaintiff has discovered the fraud or could with reasonable diligence have discovered it. Counting from the date of the fraud, as in the first option, ignores this postponement.

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