PLD 2022 SC 353
Limitation Act (IX of 1908)---
----S. 18---Civil Procedure Code (V of 1908), O.VI, R. 4---Commencement of limitation period---Benefit of postponing the commencement of the period of limitation provided to an injuriously affected person---Such benefit is not applicable against a bona fide purchaser---True purport of section 18 of the Limitation Act, 1908 explained with the exception provided therein.
In essence, section 18 of the Limitation Act, 1908 is a safeguard against fraud committed to conceal from a person his right to sue. It postpones the commencement of the period of limitation to the date when the fraud first became known to the "person injuriously affected". Such injuriously affected person can, therefore, institute a suit within the limitation period specified for such suit in the First Schedule ("Schedule") to the Limitation Act, 1908 but computing it from the date when he first had knowledge of the fraud, whereby he was kept from knowledge of his right to institute the suit.
The "fraud" envisaged in section 18 only relates to concealing, not creating, the right to sue and thus, affects only the limitation period and has nothing to do with the cause of action and the relief prayed. A plaintiff who wants to avail the benefit of section 18 of the Limitation Act, 1908 must assert the commission of such fraud by the defendant in the plaint, and should also give the particulars thereof, and the date of knowledge as required under Rule 4 of Order VI of the C.P.C., and then prove the same through positive evidence.
The umbrella concession qua the commencement of period of limitation, under section 18 of the Limitation Act, 1908 has an express exception, that is, when the disputed property is purchased by a third person in good faith and for valuable consideration (bone fide purchaser), the benefit of section 18 to the owner would then not be available against such third person.
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