Limitation Act, Court Fees, Stamp and Registration Acts

What to remember

• The Limitation Act, 1963 sets the time within which a suit, appeal or application must be filed. After that time the remedy is barred, and the court must dismiss the case even if the defendant does not raise the point.
• Court fee is paid to the court on the plaint, appeal or petition; stamp duty is paid to the State on an instrument; registration makes a document public and valid as evidence. An unstamped instrument is not admissible, and a compulsorily registrable document that is unregistered does not affect the property.
• Know the key periods: three years for most money suits, twelve years for possession of immovable property by a private person, thirty years for the Government; thirty and ninety days for appeals; four months to register.

Limitation Act, 1963

The Act has thirty-two sections and a Schedule. The Schedule has three divisions: suits, appeals and applications. It came into force on 1 January 1964 and replaced the Act of 1908. The basic idea is that the law helps the vigilant ("interest of the State that there should be an end to litigation"). Limitation generally bars the remedy, not the right. The exception is the section on extinguishment of the right to property: when the time for a suit for possession of property ends, the owner's right is extinguished.

Key sections

Section on acknowledgment needs a written, signed statement, made before expiry, admitting a liability. It need not promise to pay. An oral acknowledgment does not count. Section on extension (sufficient cause) does not apply to suits. The period for a suit by or for the Central or a State Government is longer than for private parties.

Some periods (Schedule)

Time ordinarily runs from the date the cause of action arises. Once time starts to run, later disability does not stop it. If a period ends when the court is closed for a holiday, the party can file on the reopening day. Adverse possession arises from the rule that possession of the true owner's property for the full period (twelve years for private land) without interruption, openly and against his title, extinguishes the owner's title.

Court Fees

Court fee is a fee paid to the State for the services of the court. In Andhra Pradesh it is governed by the Andhra Pradesh Court Fees and Suits Valuation Act, 1956 (the Central Court Fees Act, 1870 applies as a general reference). It is paid by court fee stamps or the electronic equivalent, and a document that carries a fee is not accepted by the court until the fee is paid.

There are two types of fee. Ad valorem fee is proportional to the value of the subject matter, for example a plaint in a money suit or an appeal against a money decree. Fixed fee is a set amount for certain documents, such as many petitions, applications and some appeals. The Act has two schedules, one for ad valorem and one for fixed fees. Probate and letters of administration also attract ad valorem fees.

Valuation affects both the court fee and the pecuniary jurisdiction of the court. The Suits Valuation Act, 1887 lets the value for jurisdiction be fixed from the court fee valuation in certain suits. For a money suit, the fee is based on the amount claimed. If the plaint is not sufficiently stamped and the plaintiff does not make good the deficit within the time given by the court, the plaint is rejected. A plaint undervalued by the plaintiff, who then does not correct it when ordered, is also rejected.

Concessions and refunds

• Pauper suit: a person without sufficient means to pay the fee may sue as an indigent person (under the Code of Civil Procedure) without paying the court fee. If he later wins, the fee is recovered from the defendant or from the property recovered.
• Refund: where a dispute is settled by a Lok Adalat, the full fee paid is refunded. A refund is also made where a case is sent to arbitration, conciliation or mediation and settled under the Code of Civil Procedure.
• Remand: When an appeal is allowed and the case is sent back, the appeal fee can be refunded.

Indian Stamp Act, 1899

Stamp duty is a tax on instruments (documents that create, transfer, limit, extend, extinguish or record a right or liability). The Indian Stamp Act, 1899 provides the general law and is amended by the State. Duty on bills of exchange, cheques, promissory notes, receipts and similar is fixed by the Union, while duty on other instruments such as sale deeds and mortgages is a State matter, and the State collects it. The Act's schedule lists duty by type of instrument. In AP, stamp duty is collected through the Registration and Stamps Department, including by e-stamping.

Impounded documents are sent to the Collector, who may then decide the duty and penalty. Stamp duty is a revenue measure; the unstamped document is not void, only inadmissible until the defect is cured.

Registration Act, 1908

Registration is the process of recording a document in the public register. Its purposes are to give notice to all, to prevent fraud, and to preserve evidence. The department is headed by the Inspector General of Registration, with District Registrars and Sub-Registrars below. Documents on immovable property are registered in the office of the Sub-Registrar within whose area the property lies.

Compulsory registration is required for:

• 1. gift of immovable property;
• 2. other non-testamentary documents that create, declare, assign, limit or end a right in immovable property of the value of one hundred rupees or more;
• 3. non-testamentary documents acknowledging receipt or payment of consideration for such a transaction;
• 4. leases of immovable property from year to year, for a term of more than one year, or reserving a yearly rent;
• 5. documents assigning a decree or order of a court creating a right in immovable property of the value of one hundred rupees or more;
• 6. an agreement to sell relating to immovable property with possession, for the purpose of part performance.

Optional registration applies to documents that need not be registered, such as a will, and certain others. A will can also be deposited with the Registrar in a sealed cover.

Documents not requiring registration: leases for one year or less, wills, receipts for money lent, and certain court orders.

Registrars keep four books. Book 1 is for non-testamentary documents about immovable property, Book 2 for the record of reasons for refusal to register, Book 3 for wills and authorities to adopt, and Book 4 for miscellaneous documents.

Exam traps

• Limitation bars the remedy, not the right, except for the right to property in a possession suit.
• Section on extension of time for sufficient cause applies to appeals and applications, never to suits.
• Acknowledgment must be in writing and signed, before the period expires.
• Appeals to the High Court have ninety days; appeals to other courts have thirty days.
• Ad valorem fee is by value; fixed fee is a set amount.
• An unstamped document is inadmissible but not void.
• A registered document takes effect from the date of execution.
• Four months to register; four more months with a fine of up to ten times the fee.
• A will needs no compulsory registration.

One-liners

• 1. The Limitation Act of 1963 came into force on 1 January 1964.
• 2. A suit filed after the limitation period must be dismissed.
• 3. Limitation for a suit for possession of immovable property by a private party is twelve years.
• 4. A suit by the Government on property has a thirty-year period.
• 5. Money suits generally have a three-year period.
• 6. Delay in appeals can be condoned for sufficient cause.
• 7. AP court fees are governed by the AP Court Fees and Suits Valuation Act, 1956.
• 8. Ad valorem means "according to value".
• 9. Indian Stamp Act is dated 1899.
• 10. An instrument not duly stamped must be impounded.
• 11. Registration Act is dated 1908.
• 12. A registered document operates from the date of execution.

Practice questions

1. The Limitation Act currently in force in India was passed in

   1. 1899
   2. 1963
   3. 1908
   4. 1872
   Answer

   B. 1963

   The Limitation Act, 1963 replaced the Act of 1908.

2. A suit filed after the limitation period must be

   1. sent to a Lok Adalat
   2. decreed in favour of the plaintiff
   3. adjourned until the defendant objects
   4. dismissed, even if limitation is not raised as a defence
   Answer

   D. dismissed, even if limitation is not raised as a defence

   The bar of limitation operates on the court, whether or not it is pleaded.

3. Limitation generally bars

   1. the right, not the remedy
   2. both the right and remedy in all cases
   3. neither
   4. the remedy, not the right
   Answer

   D. the remedy, not the right

   Except in the case of the right to property, limitation extinguishes only the remedy.

4. The general period of limitation for a suit on a contract or for money lent is

   1. six months
   2. one year
   3. three years
   4. twelve years
   Answer

   C. three years

   Most money suits have a three-year period.

5. A private party's suit for possession of immovable property based on title has a period of

   1. twelve years
   2. three years
   3. thirty years
   4. one year
   Answer

   A. twelve years

   Twelve years from when the defendant's possession becomes adverse.

6. A suit by or on behalf of the Government has a longer period of

   1. three years
   2. thirty years
   3. sixty years
   4. twelve years
   Answer

   B. thirty years

   Government suits have thirty years under the Schedule.

7. An appeal from a decree to the High Court generally has a limitation period of

   1. ninety days
   2. thirty days
   3. one year
   4. sixty days
   Answer

   A. ninety days

   Ninety days for a High Court appeal under the Code of Civil Procedure; thirty days for other courts.

8. An appeal from a decree to a court other than the High Court generally has a limitation period of

   1. six months
   2. one year
   3. thirty days
   4. ninety days
   Answer

   C. thirty days

   Thirty days for appeals to courts other than the High Court.

9. A review application under the Code of Civil Procedure is generally to be filed within

   1. ninety days
   2. one year
   3. three years
   4. thirty days
   Answer

   D. thirty days

   Thirty days from the date of the decree or order.

10. The extension of the period for sufficient cause is available for

    1. suits only
    2. appeals only
    3. appeals and applications, but not suits
    4. all proceedings
    Answer

    C. appeals and applications, but not suits

    This section cannot be used to extend the time for filing a suit.

11. If the last day of the limitation period falls on a day the court is closed, the suit may be filed

    1. on the previous day only
    2. within one month
    3. it is time-barred
    4. on the day the court reopens
    Answer

    D. on the day the court reopens

    The Act protects a litigant when the court is closed on the last day.

12. A person who is a minor at the time the right to sue arises can file the suit

    1. only through a guardian within the original period
    2. never
    3. only after ten years
    4. within the period from the time he ceases to be a minor
    Answer

    D. within the period from the time he ceases to be a minor

    Time begins to run when the legal disability ends.

13. Time spent in a court without jurisdiction, in good faith and with due diligence, is

    1. included in the limitation period
    2. excluded from the limitation period
    3. counted double
    4. irrelevant
    Answer

    B. excluded from the limitation period

    This exclusion protects bona fide litigants.

14. The time spent in obtaining a certified copy of the judgment is

    1. included
    2. excluded when computing the period for an appeal
    3. counted as half
    4. irrelevant
    Answer

    B. excluded when computing the period for an appeal

    Time requisite for obtaining the copy is excluded.

15. A fresh period of limitation begins if the debtor makes

    1. a signed written acknowledgment of liability before the period ends
    2. a statement after the period ends
    3. a promise not signed
    4. an oral promise to a friend
    Answer

    A. a signed written acknowledgment of liability before the period ends

    A written, signed acknowledgment before expiry gives a fresh period.

16. A part payment of the debt before the period ends

    1. gives a fresh period of limitation
    2. has no effect
    3. ends the debt
    4. cancels the suit
    Answer

    A. gives a fresh period of limitation

    A payment on account gives a fresh period from the date of payment.

17. A suit for defamation has a limitation period of

    1. thirty years
    2. twelve years
    3. one year
    4. three years
    Answer

    C. one year

    Libel and slander suits have a one-year period.

18. Court fees in Andhra Pradesh are governed by the

    1. Andhra Pradesh Stamp Rules, 1899
    2. Andhra Pradesh Court Fees and Suits Valuation Act, 1956
    3. AP Registration Act, 1908
    4. AP Limitation Act, 1963
    Answer

    B. Andhra Pradesh Court Fees and Suits Valuation Act, 1956

    The AP Court Fees and Suits Valuation Act of 1956 governs court fees in the State.

19. Ad valorem court fee means a fee charged

    1. by the page
    2. by the day
    3. as a fixed sum
    4. according to the value of the subject matter
    Answer

    D. according to the value of the subject matter

    Ad valorem is Latin for 'according to value'.

20. A plaint that is not sufficiently stamped and whose deficit is not made good in the time given by the court is

    1. rejected
    2. decreed
    3. taken as fixed fee
    4. sent to the Collector for refund
    Answer

    A. rejected

    Insufficient court fee that is not made up within the time allowed leads to rejection.

21. A person who is too poor to pay the court fee may sue as

    1. a trustee
    2. a minor
    3. an indigent person (pauper)
    4. an approver
    Answer

    C. an indigent person (pauper)

    The Code of Civil Procedure allows suits by indigent persons.

22. When a dispute is settled in a Lok Adalat, the court fee paid is

    1. carried to the next case
    2. refunded in full
    3. refunded by half
    4. forfeited
    Answer

    B. refunded in full

    Settlement through Lok Adalat entitles the party to a full refund.

23. An instrument executed in India must be stamped

    1. within one year
    2. after registration
    3. only if the court asks
    4. before or at the time of execution
    Answer

    D. before or at the time of execution

    Section 17 requires stamping at or before execution.

24. An instrument that is not duly stamped, produced before a judge, must be

    1. destroyed
    2. returned unread
    3. impounded
    4. registered
    Answer

    C. impounded

    An authorised person must impound it and send it to the Collector.

25. An unstamped instrument is

    1. inadmissible in evidence until the duty and penalty are paid
    2. void for all purposes
    3. fully admissible
    4. valid only for sale deeds
    Answer

    A. inadmissible in evidence until the duty and penalty are paid

    Unstamped instruments are not void; they cannot be acted upon until duty and penalty are paid.

26. A gift of immovable property needs

    1. no registration
    2. only a stamp
    3. compulsory registration
    4. registration only if above one lakh
    Answer

    C. compulsory registration

    A gift of immovable property is on the compulsory list.

27. A document that needs registration must be presented for registration within

    1. ten days
    2. four months from the date of execution
    3. one month
    4. two years
    Answer

    B. four months from the date of execution

    The normal time is four months; a further four months is allowed with a fine.

28. A registered document operates from

    1. the date of execution
    2. the date of the stamp
    3. the date of registration
    4. the date of the sale price
    Answer

    A. the date of execution

    Registration relates back to the date of execution.

29. A lease of immovable property needs a registered instrument if it is

    1. for less than one year
    2. from year to year or for more than one year
    3. for six months
    4. for one month
    Answer

    B. from year to year or for more than one year

    Leases of a year or less are exempt.

30. Statements about limitation: 1. Section on extension for sufficient cause can extend time for filing a suit. 2. Limitation applies even if the defendant does not plead it.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    The extension section is for appeals and applications only; the court must itself apply the bar.

31. Statements about acknowledgment: 1. It must be in writing and signed. 2. An oral acknowledgment gives a fresh period.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Oral acknowledgment does not create a fresh period.

32. Statements about stamp duty: 1. An unstamped instrument is inadmissible until duty and penalty are paid. 2. Once admitted after payment, the question of duty cannot be raised again.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both rules are correct.

33. Statements about registration: 1. A registered document operates from the date of execution. 2. A will must be registered within four months.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    A will need not be registered at all.

34. Statements about court fee: 1. It is paid for filing certain documents in court. 2. It is the same as stamp duty on a sale deed.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Court fee and stamp duty are different levies.

35. Statements about adverse possession in a private land case: 1. The period is twelve years. 2. The possession must be open and against the owner's title.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are essential features.

36. Statements about limitation for appeals: 1. Appeals to the High Court have ninety days. 2. Appeals to courts other than the High Court have ninety days.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Other courts have thirty days.

37. Statements about disability: 1. Time does not run for a minor until he ceases to be a minor. 2. Disability arising after time has started to run stops the period.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    A later disability does not stop time once it has begun.

38. Statements about pauper suits: 1. The indigent plaintiff is allowed to sue without paying the court fee. 2. The fee can be recovered later from the defendant or the property won.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both statements are correct.

39. Statements about stamp duty: 1. It is a tax on instruments. 2. The Government of India alone sets the duty on all instruments.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Duty on instruments other than bills, cheques and notes is a State matter.

40. Match the case with its period: (a) Money suit (b) Possession by private person (c) Government suit (d) Review application (i) 3 years (ii) 12 years (iii) 30 years (iv) 30 days

    1. a-ii, b-i, c-iv, d-iii
    2. a-iii, b-iv, c-i, d-ii
    3. a-iv, b-iii, c-ii, d-i
    4. a-i, b-ii, c-iii, d-iv
    Answer

    D. a-i, b-ii, c-iii, d-iv

    Standard Schedule periods.

41. Match the Act with its year: (a) Limitation Act (b) Indian Stamp Act (c) Registration Act (d) AP Court Fees and Suits Valuation Act (i) 1963 (ii) 1899 (iii) 1908 (iv) 1956

    1. a-iii, b-iv, c-i, d-ii
    2. a-ii, b-i, c-iv, d-iii
    3. a-iv, b-iii, c-ii, d-i
    4. a-i, b-ii, c-iii, d-iv
    Answer

    D. a-i, b-ii, c-iii, d-iv

    Years: 1963, 1899, 1908, 1956.

42. Match the fresh-period event with its feature: (a) Acknowledgment (b) Part payment (c) Fraud (d) Continuing wrong (i) written and signed (ii) debt or interest paid before expiry (iii) period runs from discovery (iv) fresh period at every moment

    1. a-iii, b-iv, c-ii, d-i
    2. a-i, b-ii, c-iii, d-iv
    3. a-ii, b-i, c-iv, d-iii
    4. a-iv, b-iii, c-i, d-ii
    Answer

    B. a-i, b-ii, c-iii, d-iv

    Each matches the Act's rule.

43. For a delay in presenting a document for registration, the Registrar can allow a further four months and levy a fine of up to

    1. one rupee
    2. the stamp duty
    3. twice the registration fee
    4. ten times the registration fee
    Answer

    D. ten times the registration fee

    Delay beyond four months is allowed for another four months with a fine.

44. A document that must be registered but is not registered

    1. takes effect after ten years
    2. is void for every purpose
    3. is valid for all purposes
    4. does not affect the immovable property and cannot be received as evidence of the transaction
    Answer

    D. does not affect the immovable property and cannot be received as evidence of the transaction

    Non-registration of a compulsorily registrable document makes it ineffective for the property.