Articles 19 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A loan given in cash or by cheque, a deposit repayable on demand, money you paid on someone's behalf, and interest that was never paid: all of these are covered by Articles 19 to 25 of the Schedule to the Limitation Act, 1963. Each gives three years, but the date the three years start from is different for each, and that is where most mistakes are made.
The text below is taken from the consolidated text of the Act consulted (latest amendment shown: Act 46 of 1999). Later amendments should be checked.
For a suit on money lent (Article 19), a cheque loan (Article 20), a loan payable on demand (Article 21), a deposit payable on demand (Article 22), money paid for the defendant (Article 23), money received for the plaintiff's use (Article 24) and interest (Article 25), the period is three years. A loan payable on demand runs from when the loan is made, but a deposit payable on demand runs from when the demand is made. A suit filed after the period is liable to be dismissed under section 3.
Where these Articles sit
Articles 19 to 25 are in the First Division of the Schedule (suits), Part II (suits relating to contracts). If you are a lender chasing a borrower, a depositor, or a business that paid a bill for another party, a recovery suit is the usual route once a notice has gone unanswered. Our guide to how the Schedule is laid out explains its three columns.
The seven Articles, copied as printed:
| Article | Description of suit | Period of limitation | Time from which period begins to run |
|---|---|---|---|
| 19 | For money payable for money lent. | Three years. | When the loan is made. |
| 20 | Like suit when the lender has given a cheque for the money. | Three years. | When the cheque is paid. |
| 21 | For money lent under an agreement that it shall be payable on demand. | Three years. | When the loan is made. |
| 22 | For money deposited under an agreement that it shall be payable on demand, including money of a customer in the hands of his banker so payable. | Three years. | When the demand is made. |
| 23 | For money payable to the plaintiff for money paid for the defendant. | Three years. | When the money is paid. |
| 24 | For money payable by the defendant to the plaintiff for money received by the defendant, for the plaintiff's use. | Three years. | When the money is received. |
| 25 | For money payable for interest upon money due from the defendant to the plaintiff. | Three years. | When the interest becomes due. |
Article by Article with dates
Section 12(1) excludes the day from which the period is reckoned, so three years from a date end on the same date three years later.
Article 19: money lent. Sunita lends Rs 5,00,000 to Kapoor Interiors on 12 April 2023, with a repayment date of 12 April 2025. The period runs "when the loan is made", so the three years end on 12 April 2026. Note that the starting point is the date of the loan, not the repayment date in the agreement. If the repayment date is later than the end of the three years, take advice early.
Article 20: loan given by cheque. The Article says "like suit when the lender has given a cheque for the money". The period starts "when the cheque is paid". If the lender hands over a cheque on 1 August 2023 and it is paid on 4 August 2023, the three years end on 4 August 2026.
Article 21: loan payable on demand. Here the agreement says the money is payable on demand. The period still starts "when the loan is made". A loan of Rs 3,00,000 made on 3 February 2023 and repayable on demand has a limitation end date of 3 February 2026, whether or not any demand was made. Many lenders assume the demand starts the clock. For a loan, the text says otherwise.
Article 22: deposit payable on demand. For a deposit under an agreement that it is payable on demand, including a customer's money in the hands of his banker so payable, the period starts "when the demand is made". Mr Das deposits Rs 2,00,000 with a firm in January 2020 on terms that it is payable on demand. He demands it on 20 August 2024. The three years end on 20 August 2027. Compare this with Article 21: the difference in the starting point between a loan on demand and a deposit on demand is printed in the Schedule.
Article 23: money paid for the defendant. A supplier pays a transport charge of Rs 40,000 on behalf of a customer on 9 July 2023. The three years run from "when the money is paid" and end on 9 July 2026. See also our post on money paid by mistake or under coercion for the Contract Act side of money paid and recovered.
Article 24: money received by the defendant for the plaintiff's use. An agent collects Rs 1,20,000 from a buyer for the principal on 18 October 2023 and does not pass it on. The three years run from "when the money is received", ending 18 October 2026. For agents' duties on accounts, see section 213 and 214 of the Indian Contract Act.
Article 25: interest. A suit "for money payable for interest upon money due from the defendant to the plaintiff" runs from "when the interest becomes due". If interest of Rs 18,000 fell due on 31 March 2024, three years end on 31 March 2027. If interest falls due in several instalments, each due date is a separate starting point on the text of the Article; read your agreement date by date.
What can change the count
- Sections 18 and 19. A signed written acknowledgment before the period expires gives a fresh period; so does a payment on account of a debt made before the period expires by the person liable or his duly authorised agent, with the acknowledgment section 19 requires. See section 18 and section 19.
- Section 4. If the last day is a day the court is closed, the suit may be filed when it re-opens.
- Section 6. Where the person entitled to sue is under a legal disability when the period starts, the period can be counted after the disability ends.
- Section 5 does not help a suit. It applies to appeals and applications only.
If the loan is secured by a mortgage or a charge on immovable property, the suit to enforce payment may fall under another Article; our article on Articles 61 to 63 covers it.
Special laws with their own periods
Section 29(2) provides that where a special or local law prescribes a different period for a suit, appeal or application, that period applies. A bank's recovery action, an insolvency application by a creditor, a cheque-dishonour complaint and a claim by a micro or small enterprise are each governed by their own laws. This article states none of those periods; see our posts on limitation and acknowledgment of debt in insolvency proceedings, bank recovery and the DRT process and time limits for a cheque-dishonour complaint.
Before the date arrives
- Write down which Article your claim fits: a loan (19, 20, 21), a deposit (22), money paid for the other side (23), money received for you (24), or interest (25).
- Fix the exact start date from the bank statement, receipt, cheque clearing date or demand letter.
- Look for any signed acknowledgment or part payment that may give a fresh period.
- Compute the end date, and the preceding days, with section 12(1) in mind.
- Prepare the loan agreement, statements and correspondence for the plaint.
Need help recovering money lent or deposited?
If a borrower has gone quiet or a deposit has not been returned, the dates in your papers decide how much time is left. We can review the documents and help prepare a recovery suit with the loan history, demand and acknowledgments set out in order.
Key takeaways
- Articles 19 to 25 give three years for money lent, cheque loans, demand loans, demand deposits, money paid, money received and interest.
- A demand loan runs from when the loan is made; a demand deposit runs from when the demand is made.
- A cheque loan runs from when the cheque is paid.
- Interest runs from when it becomes due.
- Sections 18 and 19 can give a fresh period; section 5 does not help a suit.
- A special or local law may fix its own period under section 29(2); later amendments should be checked.
Read next
- Articles 14–18: price of goods sold and work done
- Articles 26–30: accounts stated, specified-time promises and bonds
- Articles 31–41: bills of exchange and promissory notes
- What is a bad debt? Meaning and examples
Disclaimer: Based on a consolidated text of the Limitation Act, 1963 and its Schedule whose latest amendment shown is Act 46 of 1999, as consulted on 2 October 2026. A special or local law may fix a different period; later amendments and the current procedural law should be checked. This article is general information, not legal advice; check the official text before acting.