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

Ramesh Traders agreed to let Kavita Enterprises use a godown for a fixed term, and Kavita Enterprises kept a portion of the godown locked and refused access to Ramesh Traders for several months after the term ended. Under the Limitation Act, 1963, what is the effect of such a continuing wrong on limitation?

In a continuing breach of contract or continuing tort, a fresh period of limitation begins to run at every moment the breach or tort continues. So the claimant is not limited to counting from the first wrongful act, because each moment of continuance restarts the period.

  1. AA fresh period of limitation begins to run at every moment during which the breach or tort continuesCorrect
  2. BLimitation runs only once, from the date the first breach occurred, and is never renewed
  3. CLimitation is suspended until the breach finally ends, and then restarts only once
  4. DLimitation is extinguished because the breach is continuing

Explanation

Section 22 provides that in a continuing breach of contract or continuing tort, a fresh period of limitation begins at every moment the breach or tort continues. Hence the claim is not confined to a single period counted from the first act. The option saying limitation runs only from the first breach ignores the continuing nature.

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