Articles 54 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.
When a seller will not complete a sale, a supplier stops delivering, or a contractor walks off a job, the affected party usually has two routes: ask the court to make the other side perform, or claim money for the breach. Articles 54 and 55 of the Schedule to the Limitation Act, 1963 set the time for each. Both give three years, but they count from different events.
The text below follows the consolidated text of the Act consulted (latest amendment shown: Act 46 of 1999). Later amendments should be checked.
For a suit for specific performance of a contract (Article 54), the three years run from the date fixed for performance or, if no date is fixed, from when the plaintiff has notice that performance is refused. For a suit for compensation for breach of any contract not specially provided for (Article 55), they run from when the contract is broken, from the breach in respect of which the suit is instituted if breaches are successive, or when a continuing breach ceases. Late suits are liable to be dismissed under section 3.
Where these Articles sit
Articles 54 and 55 are in the First Division (suits), Part II (suits relating to contracts). Article 55 is the general article for compensation for breach of "any contract, express or implied not herein specially provided for": if another Article already covers your claim, such as the price of goods or a promise to do something at a specified time, use that Article. A contract dispute between businesses may also be a commercial dispute with its own steps before a suit, so a commercial suit needs planning around the limitation date. Our guide to how the Schedule is laid out explains the three columns.
Copied as printed:
| Article | Description of suit | Period of limitation | Time from which period begins to run |
|---|---|---|---|
| 54 | For specific performance of a contract. | Three years. | The date fixed for the performance, or, if no such date is fixed, when the plaintiff has notice that performance is refused. |
| 55 | For compensation for the breach of any contract, express or implied not herein specially provided for. | Three years. | When the contract is broken or (where there are successive breaches) when the breach in respect of which the suit is instituted occurs or (where the breach is continuing) when it ceases. |
Article 54: specific performance
A date was fixed. A builder agrees on 1 February 2023 to sell a flat and completion is fixed for 31 December 2023. The buyer wants the flat, not damages. The period starts on "the date fixed for the performance", and, by section 12(1), the first day is excluded, so the three years end on 31 December 2026.
No date was fixed. If the agreement fixes no date, the period starts "when the plaintiff has notice that performance is refused". Suppose the seller writes on 18 March 2024 that he will not go through with the sale, and the buyer receives the letter that day. The three years end on 18 March 2027. The Article speaks of the plaintiff having notice of refusal, so the date the buyer knew is what the print names. The text does not describe what counts as a refusal; read the correspondence carefully.
This is the limitation rule only. Whether a court can order specific performance, and what the buyer must show, is a separate matter under the Specific Relief Act, 1963. Our companion posts on specific performance, defences and trusts and readiness and willingness cover that. Limitation under this Schedule does not decide those questions, and passing the limitation test does not by itself win a case.
Article 55: compensation for breach of contract
One breach. A supplier fails to deliver ordered machinery on 10 January 2024, the contractual date. The period starts "when the contract is broken", and three years end on 10 January 2027. For what compensation can cover, see section 73 of the Indian Contract Act.
Successive breaches. A supply contract requires monthly deliveries and the supplier misses several. The Article says that where there are successive breaches the period runs from "the breach in respect of which the suit is instituted". If the suit is about the delivery due on 5 February 2024, the three years for that breach end on 5 February 2027. The text counts from the date of the breach the suit is about.
Continuing breach. Where the breach is continuing, the period starts "when it ceases". Suppose a lessee keeps a promised payment withheld month after month and the breach ceases on 30 June 2024. The three years then end on 30 June 2027. For the effect of a continuing breach under the Act itself, see section 22, which gives a fresh period of limitation at every moment during which a continuing breach continues.
Where another Article applies. Article 55 is for contracts "not herein specially provided for". A suit for the price of goods falls under Articles 14 to 18, and a suit for breach of a promise to do something at a specified time falls under Article 27, covered in our article on Articles 26 to 30.
What can change the count
- Section 12(1): the first day is excluded.
- Section 4: the suit may be filed on the day the court re-opens if the last day fell when it was closed.
- Section 14: time spent bona fide in a court without jurisdiction may be excluded. See section 14.
- Section 17: fraud or mistake can delay the start of the period. See section 17.
- Sections 18 and 19: a signed acknowledgment, or a payment on account of a debt made and acknowledged as section 19 requires, before expiry gives a fresh period.
- Section 5 does not help a suit. Section 5 applies to appeals and applications only.
Special laws
Section 29(2) says that where a special or local law prescribes a different period, that period applies. Disputes that fall under the Commercial Courts Act, the MSMED Act, arbitration law or insolvency law carry their own rules; see our posts on what counts as a commercial dispute and pre-institution mediation. This article states no period under those laws.
Checklist
- Decide which relief you want: performance (Article 54) or money (Article 55).
- For Article 54, look for the date fixed for performance; if none, find when you had notice of refusal.
- For Article 55, identify whether the breach is a single one, one of several, or continuing.
- Gather the contract, correspondence and proof of the date.
- Compute the end date with section 12(1) in mind and file with room to spare.
Need help with a breach of contract claim?
Whether you want the contract performed or compensation for its breach, the choice and the dates matter. We can read your agreement, map the limitation dates and help plan a commercial suit with the evidence in order.
Key takeaways
- Articles 54 and 55 each give three years.
- Specific performance (54): from the date fixed for performance, or if none, when the plaintiff has notice of refusal.
- Compensation (55): from the breach; for successive breaches, the one sued on; for a continuing breach, when it ceases.
- Use Article 55 only where no other Article specially covers the contract claim.
- Section 5 does not extend the time to file a suit; a special or local law may fix a different period; later amendments should be checked.
Read next
- Articles 47–53: failed consideration, contribution, profits, rent and unpaid purchase-money
- Articles 56–58: suits for declaration
- Sections 22–24 of the Limitation Act: continuing breach and continuing tort
- Section 73 of the Indian Contract Act: compensation for breach of contract
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.