Limitation for Filing a Counterclaim
Limitation for Filing a Counterclaim
1. What is a Counterclaim?
A counterclaim is a claim made by a defendant against the plaintiff in the same suit.
It allows the defendant to seek relief or damages arising from the same transaction or occurrence as the plaintiff’s claim.
It is governed by Order 8, Rule 6 of the Code of Civil Procedure (CPC), 1908.
2. When Can a Counterclaim Be Filed?
Generally, a counterclaim is filed along with the written statement (the defendant’s reply).
It deals with any claim arising from the cause of action that the plaintiff’s suit is based on.
The counterclaim can be filed only in the same suit and cannot be filed as a separate suit.
3. Limitation Period for a Counterclaim
The limitation for filing a counterclaim is governed by the Limitation Act, 1963.
The period of limitation for a counterclaim is the same as the limitation for filing a separate suit on the same cause of action.
For example:
If the claim is for recovery of money, the limitation is 3 years from the date the cause of action arises (under Article 137 of the Limitation Act).
If it’s a claim for specific performance of a contract, the limitation is 3 years (Article 54).
For other types of claims, the applicable limitation period is that of a suit for that claim.
4. Effect of Limitation on Counterclaim
If the counterclaim is filed within the limitation period applicable to a separate suit, it is valid.
If it is filed after the limitation period has expired, it is barred by limitation and the court may reject it.
Filing a counterclaim within the main suit does not extend or shorten the limitation period; the limitation period runs from the date the cause of action for the counterclaim arises, independently of the suit.
5. Legal Provisions
Order 8, Rule 6(1), CPC: Allows a defendant to set up a counterclaim in the written statement.
Section 3 of the Limitation Act: Specifies that the Limitation Act applies to counterclaims.
Articles in the Limitation Act: The limitation period depends on the nature of the counterclaim.
6. Practical Illustration
Suppose a plaintiff sues for damages for breach of contract.
The defendant’s counterclaim is for unpaid dues arising out of the same contract.
The limitation period for the counterclaim would be the same as for a suit for recovery of money (3 years).
If the unpaid dues are claimed within 3 years from when the amount became due, the counterclaim is valid.
If filed after 3 years, the counterclaim may be rejected as time-barred.
7. Summary
| Aspect | Details |
|---|---|
| Limitation for counterclaim | Same as limitation for filing a separate suit on the counterclaim's cause of action |
| Applicable law | Limitation Act, 1963 |
| Filing time | Along with the written statement (defense) |
| Effect if barred by limitation | Counterclaim can be rejected or not entertained |
8. Key Point
The limitation clock for a counterclaim starts running from the date the cause of action for the counterclaim arises, independent of the plaintiff’s claim.
Just because the main suit is filed does not pause or affect the limitation for the counterclaim.
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