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Limitation Act Hub / First Division, Part II - Contracts: Articles 27-55
Limitation Act, 1963 - Professional Corpus - Batch 06

First Division, Part II - Contracts: Articles 27-55

Bonds, negotiable instruments, insurance, contribution, rent, specific performance and breach claims require instrument-by-instrument accrual analysis.

Authors: CA Nikhil Gupta and Kajri SinghLegal review cut-off: 2026-07-18Unit 8 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

  • Bonds, negotiable instruments, insurance, contribution, rent, specific performance and breach claims require instrument-by-instrument accrual analysis.
  • 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 27 - Breach of promise to act at specified time or contingency Period: 3 years Starts: Specified time arrives or contingency happens Article 28 - Single bond with specified payment day Period: 3 years Starts: Specified day Article 29 - Single bond without specified payment day Period: 3 years Starts: Date of execution Article 30 - Bond subject to condition Period: 3 years Starts: When condition is broken Article 31 - Bill or note payable fixed time after date Period: 3 years Starts: When bill or note falls due Article 32 - Bill payable at sight or after sight, not fixed time Period: 3 years Starts: When bill is presented Article 33 - Bill accepted payable at particular place Period: 3 years Starts: Presentation at that place Article 34 - Bill or note payable fixed time after sight or demand Period: 3 years Starts: When fixed time expires Article 35 - Bill or note payable on demand without postponing writing Period: 3 years Starts: Date of bill or note Article 36 - Note or bond payable by instalments Period: 3 years Starts: Each instalment due date Article 37 - Instalment note/bond with acceleration clause Period: 3 years Starts: Default, unless acceleration benefit is waived; then later unwaived default Article 38 - Note delivered to third person for delivery after event Period: 3 years Starts: Delivery to payee Article 39 - Dishonoured foreign bill with protest and notice Period: 3 years Starts: When notice is given Article 40 - Payee against drawer after non-acceptance Period: 3 years Starts: Date of refusal to accept Article 41 - Accommodation acceptor against drawer Period: 3 years Starts: When acceptor pays Article 42 - Surety against principal debtor Period: 3 years Starts: When surety pays creditor Article 43 - One surety against a co-surety Period: 3 years Starts: Payment in excess of own share Article 44 - Insurance policy - death or loss proof cases Period: 3 years Starts: Death/loss occurrence or insurer denial, according to the statutory clause Article 45 - Assured to recover premium under voidable policy Period: 3 years Starts: When insurer elects to avoid Article 46 - Succession Act refund of legacy or distributed assets Period: 3 years Starts: Date of payment or distribution Article 47 - Money paid on existing consideration that later fails Period: 3 years Starts: Date of failure Article 48 - Contribution after paying more than share under joint decree or revenue Period: 3 years Starts: Excess payment date Article 49 - Co-trustee contribution against deceased trustee estate Period: 3 years Starts: When right to contribution accrues Article 50 - Joint-estate manager contribution Period: 3 years Starts: Date of payment Article 51 - Wrongfully received profits of plaintiff immovable property Period: 3 years Starts: When profits are received Article 52 - Arrears of rent Period: 3 years Starts: When arrears become due Article 53 - Vendor personal claim for unpaid immovable-property price Period: 3 years Starts: Completion date, or later title acceptance Article 54 - Specific performance of contract Period: 3 years Starts: Fixed performance date; otherwise notice of refusal Article 55 - Compensation for contract breach not otherwise provided Period: 3 years Starts: Breach; relevant successive breach; or cessation of continuing breach

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

ProvisionSubjectStatus / periodFinin2min clause-by-clause decodeImplementationEvidence/control
Article 27Breach of promise to act at specified time or contingency3 yearsSpecified time arrives or contingency happensArticle 27: 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 28Single bond with specified payment day3 yearsSpecified dayArticle 28: 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 29Single bond without specified payment day3 yearsDate of executionArticle 29: 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 30Bond subject to condition3 yearsWhen condition is brokenArticle 30: 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 31Bill or note payable fixed time after date3 yearsWhen bill or note falls dueArticle 31: 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 32Bill payable at sight or after sight, not fixed time3 yearsWhen bill is presentedArticle 32: 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 33Bill accepted payable at particular place3 yearsPresentation at that placeArticle 33: 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 34Bill or note payable fixed time after sight or demand3 yearsWhen fixed time expiresArticle 34: 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 35Bill or note payable on demand without postponing writing3 yearsDate of bill or noteArticle 35: 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 36Note or bond payable by instalments3 yearsEach instalment due dateArticle 36: 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 37Instalment note/bond with acceleration clause3 yearsDefault, unless acceleration benefit is waived; then later unwaived defaultArticle 37: 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 38Note delivered to third person for delivery after event3 yearsDelivery to payeeArticle 38: 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 39Dishonoured foreign bill with protest and notice3 yearsWhen notice is givenArticle 39: 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 40Payee against drawer after non-acceptance3 yearsDate of refusal to acceptArticle 40: 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 41Accommodation acceptor against drawer3 yearsWhen acceptor paysArticle 41: 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 42Surety against principal debtor3 yearsWhen surety pays creditorArticle 42: 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 43One surety against a co-surety3 yearsPayment in excess of own shareArticle 43: 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 44Insurance policy - death or loss proof cases3 yearsDeath/loss occurrence or insurer denial, according to the statutory clauseArticle 44: 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 45Assured to recover premium under voidable policy3 yearsWhen insurer elects to avoidArticle 45: 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 46Succession Act refund of legacy or distributed assets3 yearsDate of payment or distributionArticle 46: 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 47Money paid on existing consideration that later fails3 yearsDate of failureArticle 47: 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 48Contribution after paying more than share under joint decree or revenue3 yearsExcess payment dateArticle 48: 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 49Co-trustee contribution against deceased trustee estate3 yearsWhen right to contribution accruesArticle 49: 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 50Joint-estate manager contribution3 yearsDate of paymentArticle 50: 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 51Wrongfully received profits of plaintiff immovable property3 yearsWhen profits are receivedArticle 51: 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 52Arrears of rent3 yearsWhen arrears become dueArticle 52: 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 53Vendor personal claim for unpaid immovable-property price3 yearsCompletion date, or later title acceptanceArticle 53: 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 54Specific performance of contract3 yearsFixed performance date; otherwise notice of refusalSpecific performance: separate a fixed performance date from notice of refusal; readiness evidence does not itself change the statutory trigger.Preserve the instrument, event date and article-selection memorandum.
Article 55Compensation for contract breach not otherwise provided3 yearsBreach; relevant successive breach; or cessation of continuing breachArticle 55: 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.

A sale agreement fixes 30 September for completion. Article 54 ordinarily runs from that date; a later refusal letter may be evidence but does not replace a fixed statutory trigger.

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

Practical transaction application

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

Authority, consent and execution controls

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

Performance, delivery and payment controls

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

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

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 27-55
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