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      Question

      Which statement accurately reflects the mandatory nature

      of Section 3 of the Limitation Act, 1963? 
      A Courts have discretion to entertain suits filed after the limitation period if they find the case is meritorious Correct Answer Incorrect Answer
      B Every suit, appeal, or application instituted after the prescribed period shall be dismissed, even if the defendant has not pleaded limitation as a defence, and courts must dismiss it sua moto Correct Answer Incorrect Answer
      C The bar of limitation applies only to suits; appeals and applications are exempt Correct Answer Incorrect Answer
      D If limitation is not specifically raised as a defence, courts can ignore it Correct Answer Incorrect Answer
      E Section 3 only prevents claims between commercial parties, not individuals Correct Answer Incorrect Answer

      Solution

      Section 3(1) provides that "Subject to the provisions contained in sections 4 to 24 (inclusive), every suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed although limitation has not been set up as a defence." This makes the bar of limitation mandatory, not discretionary. The Supreme Court has held that it is the duty of the court not to proceed with any suit if the prescribed period has expired, irrespective of whether the defendant raises the plea or not. This reflects the principle "Interest Reipublicae Ut Sit Finis Litium" – in the public interest, there must be an end to litigation.

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