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Effect of Fraud or Mistake

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8 views1 page

Effect of Fraud or Mistake

Uploaded by

shreesindhu54
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
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Effect of fraud or mistake


(1) Where, in the case of any suit or application for which a period of limitation is
prescribed by this Act,—
(a) the suit or application is based upon the fraud of the defendant or respondent or
his agent; or (b) the knowledge of the right or title on which a suit or application is
founded is concealed by the fraud of any such person as aforesaid; or
(c) the suit or application is for relief from the consequences of a mistake; or
(d) where any document necessary to establish the right of the plaintiff or applicant
has been fraudulently concealed from him, 8 the period of limitation shall not begin to
run until the plaintiff or applicant has discovered the fraud or the mistake or could,
with reasonable diligence, have discovered it; or in the case of a concealed document,
until the plaintiff or the applicant first had the means of producing the concealed
document or compelling its production:

Provided that nothing in this section shall enable any suit to be instituted or
application to be made to recover or enforce any charge against, or set aside any
transaction affecting, any property which—
(i) in the case of fraud, has been purchased for valuable consideration by a
person who was not a party to the fraud and did not at the time of the
purchase know, or have reason to believe, that any fraud had been
committed, or
(ii) in the case of mistake, has been purchased for valuable consideration
subsequently to the transaction in which the mistake was made, by a
person who did not know, or have reason to believe, that the mistake had
been made, or
(iii) in the case of a concealed document, has been purchased for valuable
consideration by a person who was not a party to the concealment and, did
not at the time of purchase know, or have reason to believe, that the
document had been concealed.

(2) Where a judgment-debtor has, by fraud or force, prevented the execution of a


decree or order within the period of limitation, the court may, on the application of the
judgment-creditor made after the expiry of the said period extend the period for
execution of the decree or order: Provided that such application is made within one
year from the date of the discovery of the fraud or the cessation of force, as the case
may be.

Once a period of limitation begins to run no


subsequent disability or inability to institute a
suit stops it. Discuss Continuous running of time
[Section 9]:
Once a period of limitation starts no subsequent disability or inability can stop it. The
applicability Section 9 is limited to suits and applications only and does not apply to
appeals unless the case fell within any of the exceptions provided in the Act itself.
Section 9 applies when the cause of action or right to move the Court continues to
exist on the date of making the application. Thus, the time runs, when the cause of
action accrues. Thus, once time has begun to run, no subsequent disability or
inability stops it.
Exceptions: Time for limitation runs when the cause of action accrues. However,
certain exceptions were provided in Sections 4 to 8.
(1) Section 4 provides that if the period prescribed expires on a day when the Court is
closed, the application etc., may be made on the day, the Court reopens.
(2) As per Section 5 condonation of delay is allowed on sufficient grounds.
(3) Sections 6, 7 & 8 allow extension of time in certain cases of disability.

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