Explainer · Limitation · Contracts
Limitation Period for a Breach-of-Contract Claim in India (2026)
A broken contract is only worth suing on while the claim is still in time. For breach of contract in India the limitation period is 3 years under the Limitation Act, 1963, and it usually runs from the date the contract was broken, not from when you felt the loss. This guide gives the exact Article, the day the clock starts for a damages claim and for specific performance, how an acknowledgment can extend the time, and what happens if the 3 years run out. Last verified October 2026.
- Period: 3 years to sue for breach of contract, under the Limitation Act, 1963.
- Damages: Article 55, from the date the contract is broken (or when a continuing breach ends).
- Specific performance: Article 54, from the date fixed for performance or when refusal is learned.
- If late: the suit is usually barred, and Section 5 condonation does not apply to suits.
01The short answer
The limitation period to sue for breach of contract in India is 3 years under the Limitation Act, 1963. For a damages claim the clock runs from the date the contract was broken (Article 55). For a suit asking the court to make the other side perform the contract, called specific performance, the clock runs from the date fixed for performance, or from when you learned that performance was refused (Article 54).
File after 3 years and the court will normally dismiss the suit as time-barred under Section 3, however strong your contract. The breach date, not the date you suffered the loss, is usually what starts the clock, so pin it down early.
02Which Article of the Limitation Act applies
The Schedule to the Limitation Act, 1963 separates a claim for compensation from a claim for performance.
| Type of contract claim | Article | Period | Time runs from |
|---|---|---|---|
| Compensation for breach of contract (no other Article) | 55 | 3 years | When the contract is broken, or, for a continuing breach, when it stops |
| Specific performance of a contract | 54 | 3 years | Date fixed for performance, or when the plaintiff learns performance is refused |
| Money payable under a written contract (for example a loan) | 19 / 113 | 3 years | When the amount falls due or the right to sue accrues |
Most breach claims fall under Article 55, a 3-year period. A pure money claim arising from a contract, such as an unpaid price or loan, may instead fall under a money Article; see our explainer on the limitation period for money recovery.
03When does the clock start?
For a damages claim under Article 55, time runs from the date of the breach. The breach is when the other party failed to do what the contract required, for example failed to deliver, failed to pay on the due date, or did defective work. It is not the date you discovered the full extent of your loss.
Two common patterns:
- Single breach: the clock starts on the one date the contract was broken.
- Continuing breach: where the duty is ongoing and the breach continues day by day, a fresh period can run for each day the breach continues, and time may be counted from when the breach ends.
Under Section 12 the first day is excluded, so counting begins the next day. Fixing the exact breach date is the single most important step in a contract limitation question.
04Specific performance works differently
A suit for specific performance asks the court to order the other side to actually carry out the contract, often used in agreements to sell property. It is governed by Article 54, also 3 years, but the starting point is different:
- If the contract fixes a date for performance, time runs from that date.
- If no date is fixed, time runs from when the plaintiff has notice that performance is refused.
Do not wait for a refusal if a date is fixed
Where the agreement sets a performance date, the 3 years run from that date even if the other side never formally refuses. Many specific-performance suits are lost because the buyer waited, assuming the clock had not started.
For how such a suit is framed and the relief it seeks, see our explainer on specific performance of a contract.
05Acknowledgment can extend the time
As with money claims, a signed written acknowledgment of the liability can give a fresh period.
- Acknowledgment in writing (Section 18): a signed written admission of the obligation, made before the 3 years expire, starts a fresh period of 3 years from the date of that writing.
- Part performance or part payment (Section 19): where money is due, a part payment made in time, recorded in writing signed by the payer, can also start a fresh period.
Keep every email, letter and minute in which the other side admits the contract or its default. An admission made after the period has already lapsed does not revive a dead claim. Before suing, a formal demand often resolves matters and records the breach; see how to send a legal notice for breach of contract.
06If the deadline has passed
A contract suit filed after 3 years is usually barred, and Section 5 condonation does not apply to suits, only to appeals and applications. So a late contract suit cannot be saved by asking the court to excuse the delay. Before concluding the claim is dead, check:
- The breach date. It may be later than you assumed, or the breach may be continuing.
- Any written acknowledgment or part payment made within the last 3 years, which gives a fresh period.
- Fraud or mistake (Section 17), which can push the starting date to when you discovered it.
The general rules for all civil claims are in our explainer on the limitation period for civil cases.
07Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
Claw does not fix your breach date, which is a legal judgement for your advocate. Where it helps is once a dispute escalates to a suit or an appeal: you can create a FREE Claw account to track it across 9,102 courts, benches and forums, with hearing and order alerts, so a contract matter that runs for months never loses a date. You can also search 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, to see how courts have treated the breach date, continuing breach and specific performance in similar contracts, with results in under 5 seconds. Claw does not use your case documents to train its AI models.
Create a FREE Claw account to track your contract matter and every hearing, and use case search across Indian courts to find how courts decided similar breach claims.
08Sources and further reading
- Limitation Act, 1963 (bare Act and Schedule): indiacode.nic.in
- Limitation Act, 1963 Schedule text: devgan.in
- Commentary on contract limitation: advocatekhoj.com
- Claw: clawlaw.in
This page is general information, not legal advice. The right Article and the starting date depend on your facts, so confirm the current text before you act.
09Frequently asked questions
What is the limitation period for breach of contract in India?
It is 3 years under the Limitation Act, 1963. A damages claim for breach falls under Article 55 and runs from the date the contract is broken. A suit for specific performance falls under Article 54 and runs from the date fixed for performance, or from when the plaintiff learns performance is refused.
From which date does the 3-year period start?
For a damages claim it starts from the date of the breach, that is, when the other party failed to do what the contract required, not from when you discovered the full loss. For a continuing breach, time can run afresh for each day the breach continues.
Is the limitation different for specific performance?
The period is still 3 years, but the starting point differs. Under Article 54, if the contract fixes a performance date, time runs from that date. If no date is fixed, time runs from when you have notice that performance is refused.
Can an acknowledgment extend the contract limitation?
Yes. Under Section 18, a signed written acknowledgment of the obligation made before the 3 years expire starts a fresh period of 3 years. Where money is due, a part payment under Section 19 can do the same. An admission made after the period has lapsed does not revive the claim.
What happens if I file a contract suit after 3 years?
The court will usually dismiss it as barred by limitation under Section 3, without deciding the merits. Section 5 condonation applies to appeals and applications, not suits, so a late contract suit cannot be saved by condonation.