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    Question

    According to Section 17 of the Limitation Act, 1963, in

    which circumstance will the limitation period NOT begin to run? 
    A When a defendant refuses to pay a contractual obligation Correct Answer Incorrect Answer
    B When a plaintiff simply makes an arithmetic error in calculating damages Correct Answer Incorrect Answer
    C When the knowledge of the right or title on which the suit is founded is concealed by the fraud of the defendant or respondent, or when the suit is based upon fraud of the defendant, or for relief from consequences of mistake, and the plaintiff has not discovered the fraud or mistake with reasonable diligence Correct Answer Incorrect Answer
    D When a contract contains ambiguous terms Correct Answer Incorrect Answer
    E When the plaintiff delays filing due to financial constraints Correct Answer Incorrect Answer

    Solution

    Section 17 provides that limitation shall not begin to run if: (a) the suit is based upon fraud of the defendant or respondent; (b) knowledge of the right is concealed by fraud; (c) the suit is for relief from consequences of a mistake; or (d) a document necessary to establish the right has been fraudulently concealed, until the plaintiff has discovered the fraud or mistake with reasonable diligence. Importantly, not every mistake or misunderstanding qualifies; only fraud (dishonesty or intentional deception by the defendant or agent) and serious mistakes rise to this level. In P. Radha Bai v. P. Ashok Kumar (2018), the court held that Section 17 applies only where fraud or mistake prevents knowledge of facts necessary to file the case.

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