What is the limitation period for breach of contract in India?

Under Article 55 of the Schedule to the Limitation Act 1963, the limitation period for compensation for breach of any contract is 3 years from the date when the contract is broken, or where there are successive breaches, when the breach in respect of which the suit is instituted occurs.

How does a written email or balance confirmation reset the 3-year limitation period?

Under Section 18 of the Limitation Act 1963, if before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgement of liability has been made in writing signed by the party against whom such property or right is claimed, a fresh period of limitation begins from the time when the acknowledgement was signed. Emails and signed balance sheets constitute valid Section 18 acknowledgements.

Can parties contractually reduce the statutory limitation period in India?

No. Under Section 28 of the Indian Contract Act 1872, any agreement which curtails the period of limitation provided by law is void to that extent. Parties cannot agree to reduce the 3-year statutory deadline to 1 year or 90 days.

Limitation Period Calculator India (2026) | Limitation Act 1963 Deadlines

Claim Particulars

Schedule articles & cause of action date

Nature of Claim / Dispute *

Cause of Action Date * Date of breach, invoice due date, or default

Section 18 Written Acknowledgement Date Leave blank if no written email / ledger sign-off

Commercial Court Pre-Mediation? * Excludes time spent in DLSA/Legal Services mediation

Section 19 Part Payment Made?

Filing Deadline Status

0 Days

Statutory Last Filing Date

Prescribed Period

3 Years

Effective Clock Start

Limitation Expiry

Sec 18 Extension

None

Section 3 Limitation Act: Every suit instituted after the prescribed period shall be dismissed, even if limitation has not been set up as a defense by the respondent.

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The Law of Limitation in Indian Contract Disputes

In Indian commercial litigation, the Limitation Act 1963 bars the legal remedy (though not the right itself) once the statutory timeframe lapses. Under Section 3 of the Act, it is the mandatory duty of the civil court or arbitral tribunal to examine whether the suit is within time, even if the defendant fails to raise the objection.

Key principles every business and professional must understand:

The 3-Year Standard Rule: For virtually all commercial agreements, invoices, promissory notes, and breach of contract disputes (Articles 14, 19, 54, 55, and 113), the limitation is exactly 3 years from the date when the cause of action accrued.

Section 18 Written Acknowledgement: A single email, WhatsApp confirmation, or audited balance sheet signed by the debtor admitting liability before the 3-year clock expires completely resets the clock for another fresh 3 years!

Section 12A Commercial Courts Act Exclusion: If your suit is a commercial dispute exceeding ₹3 Lakhs, mandatory pre-institution mediation at the District Legal Services Authority (DLSA) pauses the limitation clock for up to 5 months.

Schedule Summary: Indian Limitation Act 1963

Article	Nature of Action	Limitation Period	Time Commences When
Article 55	Compensation for breach of contract	3 Years	When contract is broken or breach ceases
Article 14	Price of goods sold and delivered	3 Years	Date of delivery of goods
Article 54	Specific performance of a contract	3 Years	Date fixed for performance or notice of refusal
Article 113	Residuary civil suits (no specific article)	3 Years	When right to sue first accrues
Article 65	Possession of immovable property / title	12 Years	When defendant's possession becomes adverse

Frequently Asked Questions on Indian Limitation Deadlines

Can limitation be condoned for a civil suit in India?

No. While Section 5 of the Limitation Act permits condonation of delay for appeals and applications (upon showing "sufficient cause"), Section 5 explicitly excludes original civil suits. If you miss the 3-year deadline for filing a suit, the court has zero jurisdiction to condone the delay, and the suit is permanently dismissed under Section 3.

What happens if the last day of limitation falls on a court holiday or Sunday?

Under Section 4 of the Limitation Act 1963, if the prescribed period for any suit, appeal, or application expires on a day when the court is closed, the proceeding may be lawfully instituted on the day the court reopens.

Does a legal notice stop the limitation clock from running?

No! Issuing a legal notice or sending demand letters does NOT stop or freeze the limitation period. Only instituting a plaint in a competent court or initiating mandatory Section 12A commercial mediation stops the statutory clock.

Indian Limitation Period Calculator