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.
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
Section-by-section / article-by-article provision map
| Provision | Subject | Status / period | Finin2min clause-by-clause decode | Implementation | Evidence/control |
|---|---|---|---|---|---|
| Article 27 | Breach of promise to act at specified time or contingency | 3 years | Specified time arrives or contingency happens | Article 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 28 | Single bond with specified payment day | 3 years | Specified day | Article 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 29 | Single bond without specified payment day | 3 years | Date of execution | Article 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 30 | Bond subject to condition | 3 years | When condition is broken | Article 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 31 | Bill or note payable fixed time after date | 3 years | When bill or note falls due | Article 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 32 | Bill payable at sight or after sight, not fixed time | 3 years | When bill is presented | Article 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 33 | Bill accepted payable at particular place | 3 years | Presentation at that place | Article 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 34 | Bill or note payable fixed time after sight or demand | 3 years | When fixed time expires | Article 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 35 | Bill or note payable on demand without postponing writing | 3 years | Date of bill or note | Article 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 36 | Note or bond payable by instalments | 3 years | Each instalment due date | Article 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 37 | Instalment note/bond with acceleration clause | 3 years | Default, unless acceleration benefit is waived; then later unwaived default | Article 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 38 | Note delivered to third person for delivery after event | 3 years | Delivery to payee | Article 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 39 | Dishonoured foreign bill with protest and notice | 3 years | When notice is given | Article 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 40 | Payee against drawer after non-acceptance | 3 years | Date of refusal to accept | Article 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 41 | Accommodation acceptor against drawer | 3 years | When acceptor pays | Article 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 42 | Surety against principal debtor | 3 years | When surety pays creditor | Article 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 43 | One surety against a co-surety | 3 years | Payment in excess of own share | Article 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 44 | Insurance policy - death or loss proof cases | 3 years | Death/loss occurrence or insurer denial, according to the statutory clause | Article 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 45 | Assured to recover premium under voidable policy | 3 years | When insurer elects to avoid | Article 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 46 | Succession Act refund of legacy or distributed assets | 3 years | Date of payment or distribution | Article 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 47 | Money paid on existing consideration that later fails | 3 years | Date of failure | Article 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 48 | Contribution after paying more than share under joint decree or revenue | 3 years | Excess payment date | Article 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 49 | Co-trustee contribution against deceased trustee estate | 3 years | When right to contribution accrues | Article 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 50 | Joint-estate manager contribution | 3 years | Date of payment | Article 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 51 | Wrongfully received profits of plaintiff immovable property | 3 years | When profits are received | Article 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 52 | Arrears of rent | 3 years | When arrears become due | Article 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 53 | Vendor personal claim for unpaid immovable-property price | 3 years | Completion date, or later title acceptance | Article 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 54 | Specific performance of contract | 3 years | Fixed performance date; otherwise notice of refusal | Specific 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 55 | Compensation for contract breach not otherwise provided | 3 years | Breach; relevant successive breach; or cessation of continuing breach | Article 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
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 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.