Sections 3–4 of the Limitation Act, 1963: Bar of Limitation, When a Suit Is Instituted and Court Closed on the Last Day

Sections 3 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.

Section 3 is the core rule of the Act: a suit, appeal or application made after the prescribed period must be dismissed. It also fixes the moment a suit, a set off, a counter claim or a notice of motion is treated as made. Section 4 gives a short relief when the last day falls on a day the court is closed.

This article follows the consolidated text of the Act consulted (latest amendment shown: Act 46 of 1999). Later amendments should be checked before you rely on it.

Under section 3(1), every suit instituted, appeal preferred and application made after the prescribed period shall be dismissed, although limitation has not been set up as a defence. The rule is subject to sections 4 to 24. Section 3(2) says when a suit is "instituted" and treats a set off or counter claim as a separate suit. Under section 4, if the period ends on a day the court is closed, the filing may be made on the day the court re-opens.

Section 3(1): the bar

Section 3(1) reads: "Subject to the provisions contained in sections 4 to 24 (inclusive), every suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed, although limitation has not been set up as a defence."

Three points follow from the words:

1. It covers three kinds of proceeding. Suits, appeals and applications. The Act defines "suit" so that it does not include an appeal or an application (see sections 1 and 2).
2. It uses "prescribed period". That is the period of limitation worked out under the Act, not only the raw figure in the Schedule. Sections 4 to 24 are the provisions that can change the count.
3. The defendant need not raise it. The text says dismissal follows "although limitation has not been set up as a defence". The bar is written into the section itself.

A claim of three years that is made after three years and one day, with no section from 4 to 24 helping, falls inside this rule. A simple date illustration: if the period starts on 1 March 2023 and the three years are counted with section 12(1) excluding the first day, the last day is 1 March 2026. A plaint presented on 2 March 2026 is late on those facts unless one of the provisions in sections 4 to 24 applies.

Section 29(2) lets a special or local law fix its own period and applies section 3 as if that period were the Schedule period. Tax, insolvency, company, arbitration, consumer, MSME and cheque dishonour laws carry their own periods. Check the law that governs your proceeding. For an example of one such regime, see our post on the law of limitation under the IBC.

If you are not sure how many days remain on a recovery claim, a recovery suit consultation helps you read the dates against the Schedule and the sections that adjust them.

Section 3(2)(a): when a suit is instituted

For the purposes of the Act, a suit is instituted:

"Pauper" is the word the Act uses; the print has not been updated, so check the current law for the corresponding procedure. In ordinary terms, the date that counts is the date the plaint reaches the proper officer, not the date it is drafted, signed or posted. For a company in court-ordered winding up, the date that counts is the date the claim first reaches the official liquidator.

To understand what a plaint is and who the proper officer is, see our guide on suits, parties and cause of action under the CPC and the post on plaint structure and drafting.

Section 3(2)(b): set off and counter claim

Section 3(2)(b) says a claim by way of set off or counter claim is treated as a separate suit and is deemed to have been instituted:

• Set off: on the same date as the suit in which the set off is pleaded (sub-clause (i)).
• Counter claim: on the date on which the counter claim is made in court (sub-clause (ii)).

The result is that a counter claim has its own clock. Suppose Kapoor Fabrics sues Rana Dyeing on 10 January 2026 for an invoice. Rana Dyeing makes a counter claim in court on 20 June 2026. Under section 3(2)(b)(ii), the counter claim is deemed instituted on 20 June 2026, and its period is tested against that date. A set off pleaded in the same suit, by contrast, is deemed instituted on 10 January 2026, the date of Kapoor Fabrics' suit.

For how a written statement is framed, see our guide on written statement and defence under the CPC. The post does not stand in for the Act: use it for procedure only.

Section 3(2)(c): notice of motion in a High Court

An application by notice of motion in a High Court is made when it is presented to the proper officer of that court. The same logic as for a plaint applies: the presentation date is the date that counts.

Section 4: court closed on the last day

Section 4 says: where the prescribed period for any suit, appeal or application expires on a day when the court is closed, the suit, appeal or application may be instituted, preferred or made on the day when the court re-opens.

Explanation. A court is deemed closed on any day within the meaning of the section if during any part of its normal working hours it remains closed on that day.

Points to note:

• The section applies when the prescribed period expires on a closed day. It does not give extra days when the period ends on an open day.
• It covers suits, appeals and applications alike.
• The Explanation widens "closed" beyond a full-day closure. If the court stays closed for any part of its normal working hours, it is deemed closed that day.
• The relief is to file on the day the court re-opens, which is the next day the court is open.

A date illustration: say the prescribed period ends on a Sunday and the court is closed. The filing may be made on Monday when the court re-opens, provided Monday is a day the court is open. If the court is closed on Monday as well, the text speaks of the day the court re-opens, so the filing is made on the first day it is open. The Act does not list the holidays of any court; the notified working days of the court concerned must be checked.

Section 4 deals only with closure of the court. It does not deal with a delay for any other reason. For late appeals and applications, see section 5 on condonation of delay, which applies only to appeals and applications and not to suits.

Need help with a claim close to its deadline?

When a dues claim is approaching its end date, a short review of the invoices, acknowledgments and dates saves effort later. You can start with a recovery suit discussion and we will map the dates before any filing is prepared.

Key takeaways

• Section 3(1) requires dismissal of a late suit, appeal or application, even if limitation is not raised as a defence.
• The bar is subject to sections 4 to 24.
• A suit is instituted when the plaint is presented to the proper officer, with separate rules for a pauper and for a claim against a company in court winding up.
• A set off is deemed instituted on the date of the suit; a counter claim on the date it is made in court.
• Section 4 allows filing on the day the court re-opens if the period expires on a closed day.
• A special or local law may fix a different period (section 29(2)).

Read next

• Sections 1–2: short title, extent, commencement and definitions
• Section 5: condonation of delay and sufficient cause
• Sections 12–13: exclusion of the day of judgment, copy time and pauper application
• Suits: institution, parties and cause of action under the CPC

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.