As of 7 November 2026, for a suit based on the defendant’s fraud to which section 17(1) of the…
Section 17(1)(a) postpones commencement of limitation for a suit based on the defendant’s fraud until the plaintiff discovers it or could have discovered it with reasonable…
Choose your answer
As of 7 November 2026, for a suit based on the defendant’s fraud to which section 17(1) of the Limitation Act, 1963 applies, subject to its proviso, which statement is correct?
I. Limitation does not begin until the plaintiff discovers the fraud or could discover it with reasonable diligence.
II. Every such suit has a limitation period of twelve years from the transaction.
Answer and explanation
Correct answer A
Section 17(1)(a) postpones commencement of limitation for a suit based on the defendant’s fraud until the plaintiff discovers it or could have discovered it with reasonable diligence. It does not replace the relevant prescribed period with a universal twelve-year period. The section’s proviso protects the specified good-faith purchasers for value; the discovery principle does not override that protection.
Option feedback
Option A
Section 17(1) postpones commencement until actual or reasonably diligent discovery of the fraud, subject to its protective proviso.
Option B
Section 17 does not prescribe a uniform twelve-year period for every suit based on fraud.
Option C
The discovery rule is true but the blanket twelve-year assertion is false.
Option D
The discovery rule is true, so it is wrong to reject both statements.
Practice for these exams
-
Delhi Judicial Services
-
CUET PG Law (LL.M.)
Subject revision