First Division, Part II - Contracts: Articles 6-26

Wages, sale, work, loans, deposits and account-stated claims ordinarily use a three-year period but the trigger varies materially.

Authors: CA Nikhil Gupta and Kajri SinghLegal review cut-off: 2026-07-18Unit 7 of 43India-first

Statutory source control. The local text below is a professional transcription and article map aligned to the current India Code architecture and listed amendments. The signed Gazette/current official source controls punctuation, footnotes, State variations and event-date application.

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Dedicated Finin2min Summary - Chapter in 2 Minutes

Wages, sale, work, loans, deposits and account-stated claims ordinarily use a three-year period but the trigger varies materially.
The first column classifies the proceeding, the second sets the period and the third fixes the starting point.
Sections 4-24 can alter computation only when legally available.
A special/local statute may replace the Schedule period or exclude general provisions.

Current statutory text / controlled source extract

Article 6 - Seaman's wages Period: 3 years Starts: End of the voyage during which wages were earned Article 7 - Wages of any other person Period: 3 years Starts: When wages accrue due Article 8 - Price of food or drink sold by hotel, tavern or lodging-house keeper Period: 3 years Starts: Delivery of food or drink Article 9 - Price of lodging Period: 3 years Starts: When price becomes payable Article 10 - Carrier compensation for losing or injuring goods Period: 3 years Starts: When loss or injury occurs Article 11 - Carrier compensation for non-delivery or delay Period: 3 years Starts: When goods ought to be delivered Article 12 - Hire of animals, vehicles, boats or household furniture Period: 3 years Starts: When hire becomes payable Article 13 - Balance of money advanced for goods to be delivered Period: 3 years Starts: When goods ought to be delivered Article 14 - Price of goods sold and delivered without fixed credit Period: 3 years Starts: Date of delivery Article 15 - Price of goods sold on fixed credit Period: 3 years Starts: Expiry of credit Article 16 - Price of goods to be paid by bill, no bill given Period: 3 years Starts: Expiry of proposed bill period Article 17 - Price of trees or growing crops sold without fixed credit Period: 3 years Starts: Date of sale Article 18 - Price of work done at request, no payment time fixed Period: 3 years Starts: When work is done Article 19 - Money lent Period: 3 years Starts: When loan is made Article 20 - Money lent by cheque Period: 3 years Starts: When cheque is paid Article 21 - Money lent payable on demand Period: 3 years Starts: When loan is made Article 22 - Money deposited payable on demand, including customer money with banker Period: 3 years Starts: When demand is made Article 23 - Money paid for the defendant Period: 3 years Starts: When money is paid Article 24 - Money received by defendant for plaintiff's use Period: 3 years Starts: When money is received Article 25 - Interest on money due Period: 3 years Starts: When interest becomes due Article 26 - Money found due on accounts stated Period: 3 years Starts: Written signed account stated, or agreed future payment date

Section-by-section / article-by-article provision map

Provision	Subject	Status / period	Finin2min clause-by-clause decode	Implementation	Evidence/control
Article 6	Seaman's wages	3 years	End of the voyage during which wages were earned	Article 6: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 7	Wages of any other person	3 years	When wages accrue due	Article 7: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 8	Price of food or drink sold by hotel, tavern or lodging-house keeper	3 years	Delivery of food or drink	Article 8: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 9	Price of lodging	3 years	When price becomes payable	Article 9: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 10	Carrier compensation for losing or injuring goods	3 years	When loss or injury occurs	Article 10: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 11	Carrier compensation for non-delivery or delay	3 years	When goods ought to be delivered	Article 11: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 12	Hire of animals, vehicles, boats or household furniture	3 years	When hire becomes payable	Article 12: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 13	Balance of money advanced for goods to be delivered	3 years	When goods ought to be delivered	Article 13: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 14	Price of goods sold and delivered without fixed credit	3 years	Date of delivery	Article 14: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 15	Price of goods sold on fixed credit	3 years	Expiry of credit	Article 15: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 16	Price of goods to be paid by bill, no bill given	3 years	Expiry of proposed bill period	Article 16: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 17	Price of trees or growing crops sold without fixed credit	3 years	Date of sale	Article 17: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 18	Price of work done at request, no payment time fixed	3 years	When work is done	Article 18: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 19	Money lent	3 years	When loan is made	Article 19: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 20	Money lent by cheque	3 years	When cheque is paid	Article 20: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 21	Money lent payable on demand	3 years	When loan is made	Article 21: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 22	Money deposited payable on demand, including customer money with banker	3 years	When demand is made	Article 22: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 23	Money paid for the defendant	3 years	When money is paid	Article 23: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 24	Money received by defendant for plaintiff's use	3 years	When money is received	Article 24: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 25	Interest on money due	3 years	When interest becomes due	Article 25: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.
Article 26	Money found due on accounts stated	3 years	Written signed account stated, or agreed future payment date	Article 26: match the exact claim description, period and third-column trigger; near-similar commercial facts can fall under different articles.	Preserve the instrument, event date and article-selection memorandum.

Finin2min implementation explanation

Classification

Determine whether the matter is a suit, appeal, application, execution, arbitration claim or special-statute proceeding. Record relief, forum and event date.

Computation

Select the exact article or special-law period. Record the third-column trigger, first-day exclusion, calendar period and each legally available adjustment.

Control owner

Legal owns statutory classification; business/finance owns transaction dates; secretarial/HR/property teams supply authority and evidence; counsel confirms forum filing.

Change control

Recalculate after any amendment, acknowledgment, payment, order, stay, certified-copy event or forum change. Preserve the superseded computation.

Practical examples and calculations

Chapter-specific scenario.

Two claims arise from the same transaction but seek different reliefs. The team selects separate Schedule articles and trigger dates rather than using one generic invoice date.

Calculation step	Method	Evidence
Base trigger	Record the exact statutory third-column or special-law event date.	Contract/order/notice/service/knowledge evidence
First day	Exclude the day from which the period is reckoned under section 12(1).	Calendar worksheet
Period	Add the prescribed days, months or years using the Gregorian calendar.	Date calculation and assumptions
Adjustments	Apply only proven exclusions, disability, fraud, acknowledgment/payment or court-closure rules.	Orders, copy records, signed documents, bank proof
Final cut-off	State last filing day, forum hours/e-filing rule and any condonation range.	Court calendar, portal receipt and legal sign-off

Practical transaction application

Open the chronology when the first default, refusal, knowledge event, dispossession, order or enforceability event occurs.
Classify every proposed relief separately and select the governing special statute and Schedule article.
Record authority, service, contractual cure periods, statutory notice, copy time, stay and prior proceedings.
Test acknowledgment, part-payment, fraud, disability and continuing-wrong claims against their exact statutory conditions.
Approve the last filing date, fallback forum, condonation position and evidence pack before action.

Authority, consent and execution controls

Confirm claimant/applicant legal capacity and representative authority.
Obtain board, partner, trustee, government or power-of-attorney approvals.
Authorise acknowledgments, settlements and admissions carefully because they affect limitation.
Check counsel authority and affidavit/verification requirements.

Stamp duty and registration alerts

Limitation does not cure an unstamped or unregistered instrument.
Assess State stamp duty and registration separately for the underlying contract, deed, mortgage, lease, release or settlement.
Preserve original instrument and adjudication/impounding record.
Do not assume an electronic record avoids stamp or registration law.

Evidence and document-retention checklist

Executed instrument and amendments.
Trigger-date correspondence and service proof.
Invoices, delivery, acceptance, account and bank records.
Court/tribunal orders and certified-copy records.
Acknowledgment and authority evidence.
Chronology and independent calculation.
Special-law text and amendment snapshot.
Filing receipt, diary number and portal timestamp.

Performance, delivery and payment controls

Map each obligation, milestone, due date and cure period.
Separate invoice date, payment due date, acceptance, breach and termination.
Track recurring instalments and successive breaches individually.
Record mitigation and substitute performance without assuming a new limitation period.

Breach, loss, mitigation and remedy framework

Identify suit, appeal, application, arbitration, execution or public-law remedy.
Quantify principal, interest, damages, restitution and costs separately.
Do not allow negotiations or a legal notice to revive a barred right unless statute permits.
Evaluate settlement, acknowledgment and standstill language for unintended consequences.

Limitation and forum controls

Confirm territorial, pecuniary and subject-matter jurisdiction.
Apply special-law period and express exclusion before the general Schedule.
Record appeal/review/revision and condonation limits separately.
For arbitration, separate claim limitation from court-application limitation.

Arbitration and mediation interface

Arbitration does not create a new substantive limitation period for a barred claim. Separately compute the underlying claim, arbitration commencement, section 11 application, interim relief, award challenge and enforcement. For mediation and PIMS, identify the statutory exclusion period and preserve application, service, closure and settlement records.

Company, partnership, GST and tax overlays

Companies Act and LLP authority/records.
Partnership agency and joint liability.
GST invoice, credit-note and tax evidence.
Income-tax write-off, recovery and settlement treatment.
IBC default and acknowledgment interface.
Arbitration, Commercial Courts, MSME, consumer and RERA special periods.

Finin2min Q&A

How is the correct article selected?

Classify the actual relief and legal relationship, then rule out specific articles before using a residuary article.

Does a demand notice always start limitation?

No. Some articles run from loan, delivery, breach, refusal, knowledge or enforceability irrespective of a later demand.

Can section 5 extend a suit article?

No general section 5 condonation applies to suits.

Chapter-specific decision flowchart

Decision flow for First Division, Part II - Contracts: Articles 6-26