LIMITATION DECREE, 1972 (NRCD 54)
ARRANGEMENT OF SECTIONS
Section
PART I—PERIODS OF LIMITATION
1. Part I to be subject to
provisions of Part II
2. Actions barred after two years
3. Actions barred after three
years
4. Actions barred after six years
5. Actions barred after twelve
years
6. Exemption for equitable reliefs
7. Successive conversions
8. Recovery of movable estate of
deceased persons
9. Recovery of arrears of rent,
etc.
10. Recovery of land
11. Accrual of right of action in
case of reversion, etc.
12. Actions concerning mortgaged
land
13. Actions concerning mortgage
money
14. Recovery of property held upon
trust
15. Actions against trustees
PART II—EXTENSION OF LIMITATION
PERIODS
16. Extension in case of
disability
17. Fresh accrual on
acknowledgement
18. Effect of acknowledgement
19. Fresh accrual on part payment
20. Effect of payment
21. Appropriation of payment in
respect of debts
22. Fraud and mistake
23. Extension of time where
material facts not known
24. Applications for leave of
Court
25. Application of sections 23 and
24 to actions after death
PART III—ARBITRATIONS
26. Application to arbitrations
27. Commencement of arbitration
28. Accrual notwithstanding term
in agreement
29. Power of Court to extend time
PART IV—GENERAL
30. Application of this Decree
31. Acquiescence
32. Set-off and counterclaim
33. Actions barred and pending
34. Interpretation
35. Repeals
36. Commencement
SCHEDULES
First Schedule—Repeals
Second Schedule—English statutes
ceasing to apply
LIMITATION DECREE, 1972
IN pursuance of the National
Redemption Council (Establishment)
Proclamation, 1972, this Decree is
hereby made:
PART I—PERIODS OF LIMITATION
Section 1—Part I to be Subject to
Provisions of Part II.
The provisions of this Part of
this Decree shall have effect
subject to the provisions of Part
II of this Decree which provide
for the extension of the periods
of limitation in certain
prescribed circumstances.
Section 2—Actions Barred after Two
Years.
The following actions shall not be
brought after the expiration of
two years from the date on which
the cause of action accrued:—
(a) actions claiming damages for
slander or seduction;
(b) actions to recover
contribution against one or more
concurrent wrongdoers;
(c) actions to recover a penalty
or forfeiture, or a sum by way of
penalty or forfeiture, recoverable
under any enactment.
Section 3—Actions Barred after
Three Years.
(1) An action claiming damages for
negligence, nuisance or breach of
duty (howsoever the duty exists),
where the damages claimed by the
plaintiff for the negligence,
nuisance or breach of duty consist
of or include damages in respect
of personal injuries to any
person, shall not be brought after
the expiration of three years from
the date on which the cause of
action accrued.
(2) An action for damages for the
benefit of the dependants of a
deceased person under section 16
of the Civil Liability Act, 1963
(Act 176) shall not be brought
after the expiration of three
years from the death of the
deceased.
(3) No action shall be brought
under the said section 16 of the
Civil Liability Act, 1963 if by
the date of his death the
deceased's right of action in
relation to the fault by which his
death was caused had become
statute-barred.
(4) If the right of action of the
deceased referred to in subsection
(3) of this section had not become
statute-barred by the date of his
death the action under section 16
of the Civil Liability Act, 1963
may be brought within the period
prescribed by subsection (2) of
this section notwithstanding that
by the time the action is brought
the said right of action would
have been statute-barred so far as
the deceased was concerned.
Section 4—Actions Barred after Six
Years.
(1) The following actions shall
not be brought after the
expiration of six years from the
date on which the cause of action
accrued:—
(a) actions founded on tort other
than actions to which sections 2
and 3 apply;
(b) actions founded on simple
contract;
(c) actions founded on
quasi-contract;
(d) actions to enforce a
recognisance;
(e) actions to enforce an award,
where the arbitration is under any
enactment other than the
Arbitration Act, 1961 (Act 38);
(f) actions to recover any sum
recoverable by virtue of any
enactment (other than actions to
which sections 2 and 5 apply).
(2) This section shall apply to an
action to recover seamen's wages
but shall not otherwise apply to
any cause of action within the
jurisdiction of the High Court in
maritime matters which is
enforceable in rem.
(3) An action for an account shall
not be brought in respect of any
matter which arose more than six
years before the commencement of
the action.
Section 5—Actions Barred after
Twelve Years.
(1) The following actions shall
not be brought after the
expiration of twelve years from
the date on which the cause of
action accrued:—
(a) an action upon an instrument
under seal, other than for the
recovery of arrears of an annuity
charged on movable property, or
any principal sum of money or
arrears of interest in respect of
any sum of money secured by a
mortgage or other charge;
(b) an action to enforce an award,
where the arbitration agreement is
under seal;
(c) an action to recover a sum due
to a registered company by any
member thereof under the company's
Regulations;
(d) an action to recover tax due
and payable to the Commissioner of
Income Tax, or duty due and
payable to the Comptroller of
Customs and Excise.
(2) An action shall not be brought
upon a judgment after the
expiration of twelve years from
the date on which the judgment
became enforceable.
(3) An action shall not be brought
to recover proceeds of the sale of
land after the expiration of
twelve years from the date when
the right to receive the money
accrued.
Section 6—Exemption for Equitable
Reliefs.
(1) Sections 2 to 5 shall not
apply to any claim for specific
performance of a contract or for
an injunction or other equitable
relief.
(2) This section shall not be
construed as preventing a Court
from applying by analogy any
provision of sections 2 to 5 in
any proceedings where in the
opinion of the Court the interests
of justice so require.
Section 7—Successive Conversions.
(1) Where any cause of action in
respect of the conversion or
wrongful detention of any movable
property has accrued to any person
and before he recovers possession
of it a further conversion or
wrongful detention takes place, no
action shall be brought in respect
of the further conversion or
detention after the expiration of
six years from the accrual of the
cause of action in respect of the
original conversion or detention.
(2) Where any such cause of action
has accrued to any person and the
period prescribed for bringing
that action and for bringing any
action in respect of such a
further conversion or wrongful
detention as aforesaid has expired
and he has not during that period
recovered possession of the
movable property, the title of
that person thereto shall be
extinguished.
Section 8—Recovery of Movable
Estate of Deceased Persons.
(1) Subject to subsection (3) of
this section, no action in respect
of any claim to the movable estate
of a deceased person or to any
share or interest in such estate,
whether under a will or on
intestacy, shall be brought after
the expiration of 12 years from
the date when the right to receive
the share or interest accrued.
(2) Subject to subsection (3) of
this section, no action to recover
arrears of interest in respect of
any legacy or damages in respect
of such arrears shall be brought
after the expiration of six years
from the date on which the
interest became due.
(3) No period of limitation fixed
by this Decree shall apply to an
action against a personal
representative or any person
claiming through him where the
claim is founded on any fraud to
which the personal representative
was party or privy.
Section 9—Recovery of Arrears of
Rent, Etc.
(1) No action shall be brought or
distress made to recover arrears
of rent or damages in respect
thereof after the expiration of
six years from the date on which
the arrears became due.
(2) No action shall be brought to
recover arrears of an annuity
charged on movable property or
damages in respect thereof after
the expiration of six years from
the date on which the arrears
became due.
Section 10—Recovery of Land.
(1) No action shall be brought to
recover any land after the
expiration of twelve years from
the date on which the right of
action accrued to the person
bringing it or, if it first
accrued to some person through
whom he claims, to that person.
(2) No right of action to recover
land shall be deemed to accrue
unless the land is in the
possession of some person in whose
favour the period of limitation
can run (in this section referred
to as "adverse possession").
(3) Where a right of action to
recover land has accrued, and
thereafter, before the right of
action is barred, the land ceases
to be in adverse possession, the
right of action shall no longer be
deemed to accrue until the land is
again taken into adverse
possession.
(4) For the purposes of this
Decree, no person shall be deemed
to have been in possession of any
land by reason only of having made
a formal entry thereon.
(5) For the purposes of this
Decree, no continual or other
claim upon or near any land shall
preserve any right of action to
recover the land.
(6) On the expiration of the
period fixed by this Decree for
any person to bring an action to
recover land, the title of that
person to the land shall be
extinguished.
Section 11—Accrual of Right of
Action in Case of Reversion, Etc.
(1) A right of action to recover
land shall, where the interest
claimed was a reversion or any
other future interest and no
person has taken possession of the
land by virtue of the interest
claimed, be deemed to have accrued
on the date on which the interest
fell into possession by the
determination of the preceding
interest.
(2) If a person entitled to the
preceding interest, not being a
lease for a fixed period, was not
in possession of the land on the
date of the determination thereof
no action shall be brought by the
person entitled to the succeeding
interest after the expiration of
twelve years from the date on
which the right of action accrued
to the person entitled to the
preceding interest or six years
from the date on which the right
of action accrued to the person
entitled to the succeeding
interest whichever period last
expires.
(3) No person shall bring an
action to recover any interest in
land under an assurance taking
effect after the right of action
to recover the land had accrued to
the person by whom the assurance
was made or some person through
whom he claimed or some person
entitled to a preceding interest,
unless the action is brought
within the period during which the
person by whom the assurance was
made could have brought such
action.
(4) Where any person is entitled
to any estate or interest in land
in possession and, while so
entitled, is also entitled to any
future interest in that land, and
his right to recover the interest
in possession is barred under this
Decree, no action shall be brought
by that person, or by any person
claiming through him, in respect
of the future interest, unless in
the meantime possession of the
land has been recovered by a
person entitled to an intermediate
interest.
Section 12—Actions Concerning
Mortgaged Land.
(1) No action shall be brought by
any person claiming the right to
exercise his power of sale of land
which is subject to a mortgage or
charge after the expiration of 12
years from the date on which the
right of action accrued to the
person bringing it or, if it first
accrued to some person through
whom he claims, to that person.
(2) At the expiration of the
period fixed by this Decree for a
mortgagee to bring an action
claiming sale of the mortgaged
land, the title of the mortgagee
to the land shall be extinguished.
(3) Where a mortgagee of land has
been in possession of any of the
mortgaged land for a period of 12
years, no action to redeem the
land of which the mortgagee has
been so in possession shall
thereafter be brought by the
mortgagor or any person claiming
through him.
(4) At the expiration of the
period fixed by this Decree for a
mortgagor to bring an action to
redeem land subject to a mortgage,
the title of the mortgagor to the
land shall be extinguished.
(5) At the expiration of the
period fixed by this Decree for a
mortgagee of land to bring an
action to recover the land or for
a person claiming as mortgagee or
chargee to bring an action
claiming sale of the land, the
right of the mortgagee or such
person to the principal sum and
interest secured by the mortgage
or charge shall be extinguished.
Section 13—Actions Concerning
Mortgage Money.
(1) No action shall be brought to
recover any principal sum of money
secured by a mortgage or charge on
property, whether movable or
immovable (other than a ship)
after the expiration of twelve
years from the date when the right
to receive the money accrued.
(2) The right to receive any
principal sum of money secured by
a mortgage or charge shall not be
deemed to accrue so long as the
property subject to the mortgage
or charge comprises any future
interest or any life insurance
policy which has not matured or
been determined.
(3) No action shall be brought to
recover arrears of interest
payable in respect of any sum of
money secured by a mortgage or
charge on movable or immovable
property (other than a ship), or
to recover damages in respect of
such arrears, after the expiration
of six years from the date on
which the interest became due.
(4) Where a prior mortgagee or
other encumbrancer has been in
possession of the property
charged, and an action is brought
within one year of the
discontinuance of such possession
by a subsequent encumbrancer, he
may recover by that action all the
arrears of interest which fell due
during the period of possession of
the prior encumbrancer or damages
in respect thereof,
notwithstanding that the period
exceeded six years.
(5) Where the property subject to
a mortgage or charge comprises any
future interest or life insurance
policy, and it is a term of the
mortgage or charge that arrears of
interest shall be treated as part
of the principal sum secured by
the mortgage or charge, interest
shall not be deemed to become due
before the right to receive the
principal sum of money has accrued
or is deemed to have accrued.
(6) At the expiration of the
period fixed by this Decree for a
mortgagee or chargee to bring an
action to recover a principal sum
of money and interest secured by a
mortgage or charge on movable
property (other than a ship), the
right of the mortgagee or chargee
to the principal sum and interest
shall be extinguished.
Section 14—Recovery of Property
held upon Trust.
(1) Where any property is held
upon trust, including a trust for
sale, and the period fixed by this
Decree has expired for bringing an
action to recover the property by
the trustees, the title of the
trustees shall not be extinguished
if and so long as the right of
action of any person beneficially
entitled to the property either
has not accrued or has not been
barred by this Decree, but if and
when such right of action has been
so barred, the title of the
trustees shall be extinguished.
(2) Where any property is held
upon trust, including a trust for
sale, an action to recover the
property may be brought by the
trustees on behalf of any person
beneficially entitled in
possession to the property or in
the proceeds of sale whose right
of action has not been barred by
this Decree, notwithstanding that
the right of action of the
trustees would apart from this
provision have been barred by this
Decree.
(3) Where any property held upon
trust, including a trust for sale,
is in the possession of a person
entitled to a beneficial interest
in the property or in the proceeds
of sale, not being a person solely
and absolutely entitled thereto,
no right of action to recover the
property shall be deemed for the
purposes of this Decree to accrue
during such possession to any
person in whom the property is
vested as trustee or to any other
person, entitled to a beneficial
interest in the property or the
proceeds of sale.
Section 15—Actions against
Trustees.
(1) Subject to subsection (4) of
this section, an action to recover
money or other property or in
respect of any breach of trust,
not being an action for which a
period of limitation is fixed by
any other provision of this
Decree, shall not be brought
against a trustee or any person
claiming through him after the
expiration of six years from the
date on which the right of action
accrued.
(2) For the purposes of subsection
(1) of this section a right of
action shall be deemed not to have
accrued to a beneficiary entitled
to a future interest in trust
property until the interest falls
into possession.
(3) No beneficiary, as against
whom there would be a good defence
by virtue of this section, shall
derive any greater or other
benefit from a judgment or order
obtained by another beneficiary
than he could have obtained if he
brought the action and this Decree
had been pleaded in defence.
(4) No period of limitation fixed
by this Decree shall apply to an
action against a trustee or any
person claiming through him where—
(a) the claim is founded on any
fraud or fraudulent breach of
trust to which the trustee was
party or privy, or
(b) the claim is to recover trust
property or the proceeds thereof
still retained by the trustee and
converted to his own use.
PART II—EXTENSION OF LIMITATION
PERIODS
Section 16—Extension in Case of
Disability.
(1) If, on the date when any right
of action accrued for which a
period of limitation is fixed by
this Decree, the person to whom it
accrued was under a disability,
the period of disability shall
not, subject to the subsequent
provisions of this section, be
taken into account in computing
the relevant period of limitation,
and the period of limitation shall
be computed from the date when the
person ceased to be under a
disability or died, whichever
event first occurred,
notwithstanding that the period of
limitation might otherwise have
expired.
(2) Subsection (1) shall not
affect any case where the right of
action first accrued to some
person not under a disability
through whom the person under a
disability claims.
(3) Where a right of action which
has accrued to a person under a
disability accrues, on the death
of that person while still under a
disability, to another person
under a disability, no further
extension of time shall be allowed
by reason of the disability of the
second person.
(4) This section shall not apply
to an action to recover a penalty
or forfeiture, or a sum by way of
penalty or forfeiture, recoverable
by virtue of any enactment, except
where the action is brought by an
aggrieved party.
(5) For the purposes of this
Decree, a person shall be deemed
to be under a disability while he
is an infant or of unsound mind.
(6) Without prejudice to the
generality of subsection (5) of
this section a person shall be
conclusively presumed to be of
unsound mind while he is detained
in pursuance of any enactment
authorising the detention of
persons of unsound mind.
Section 17—Fresh Accrual on
Acknowledgement.
(1) In the following cases the
right of action shall be deemed to
have accrued on and not before the
date of the acknowledgement:—
(a) where any right of action has
accrued to recover any debt and
the person liable therefor has
acknowledged the debt; or
(b) where the right of action of a
mortgagee of land to recover the
mortgage debt has accrued, and the
person in possession of the land
acknowledges the mortgagee's title
to the land; or
(c) where any right of action has
accrued to recover any claim to
the movable estate of a deceased
person or to any share or interest
therein, and the person
accountable therefor acknowledges
the claim; or
(d) where the right of a mortgagee
of land to bring an action to
recover land has accrued, and the
person in possession of the land
or the person liable for the
mortgage debt acknowledges the
debt;
(e) where there has accrued to any
person (other than a mortgagee)
any right of action to recover
land, and the person in possession
of the land acknowledges the title
of the person to whom the right of
action has accrued; or
(f) where the right of a mortgagee
of land to bring an action to
recover the land has accrued, and
the person in possession of the
land acknowledges the mortgagee's
title to the land; or
(g) where the right of an
encumbrancer of land to bring an
action claiming sale of the land
has accrued, and the person in
possession of the land or the
person liable for the debt secured
by the encumbrance acknowledges
the debt; or
(h) where a mortgagee is by virtue
of the mortgage in possession of
any mortgaged land, and the
mortgagee acknowledges the title
of the mortgagor or his equity of
redemption; or
(i)
where a right of action has
accrued in respect of a lien for
money's worth in or over land for
a limited period not exceeding
life, or in respect of a right in
the nature of such a lien, such as
a right of support or a right of
residence, not being an exclusive
right of residence in or on a
specified part of the land, and
the person in possession of the
land acknowledges such lien or
other right.
(2) Every acknowledgement shall be
in writing and signed by its
maker.
(3) An acknowledgement under this
section may be made by the agent
of the person by whom it is
required to be made, and shall be
made to the person or the agent of
the person whose right or claim is
being acknowledged.
(4) No acknowledgement shall be
deemed to be an agreement within
the meaning of the Stamp Act, 1965
(Act 311).
Section 18—Effect of
Acknowledgement.
(1) An acknowledgement of a debt
shall bind the person making it
and his successors but not any
other person.
(2) An acknowledgement of a
statute-barred debt shall not bind
any successor of the person giving
it on whom the liability devolves
on the determination of any
previous interest in property
under a settlement taking effect
before the date of the
acknowledgement.
(3) An acknowledgement of title to
any land by any person in
possession thereof shall bind all
other persons in possession during
the ensuing period of limitation.
(4) An acknowledgement by one of
several personal representatives
of any claim to the movable estate
of a deceased person or to any
share or interest therein shall
bind the estate of the deceased
person.
(5) Where two or more mortgagees
are by virtue of the mortgage in
possession of the mortgaged land,
an acknowledgement of the
mortgagor's title or of his equity
of redemption by one of the
mortgagees shall only bind him and
his successors and shall not bind
any other mortgagee or his
successors.
(6) Where the mortgagee by whom
the acknowledgement is given as
aforesaid is entitled to a part of
the mortgaged land and not to any
ascertained part of the mortgage
debt, the mortgagor shall be
entitled to redeem that part of
the land on payment, with
interest, of the part of the
mortgage debt which bears the same
proportion to the whole of the
debt as the value of the part of
the land bears to the whole of the
mortgaged land.
(7) Where there are two or more
mortgagors, and the title or right
to redemption of one of the
mortgagors, is acknowledged as
aforesaid, the acknowledgement
shall be deemed to have been made
to all the mortgagors.
Section 19—Fresh Accrual on Part
Payment.
(1) In the following cases the
right of action shall be deemed to
have accrued on and not before the
date of the payment:—
(a) where any right of action has
accrued to recover any debt, and
the person liable therefor makes
any payment in respect thereof, so
however that for the purposes of
this provision payment of interest
in whole or in part shall be
treated as a payment in respect of
the principal debt;
(b) where any right of action has
accrued to recover any claim to
the movable estate of a deceased
person or to any share or interest
therein, and the person
accountable therefor makes any
payment in respect thereof;
(c) where the right of a mortgagee
of land to bring an action to
recover the land has accrued, and
the person in possession of the
land or the person liable for the
mortgage debt makes any payment in
respect thereof, whether of
principal or interest;
(d) where the right of an
encumbrancer of land to bring an
action claiming sale of the land
has accrued, and the person in
possession of the land or the
person liable for the debt secured
by the encumbrance makes any
payment in respect thereof,
whether of principal or interest;
(e) where a mortgagee is by virtue
of the mortgage in possession of
any mortgaged land, and receives
any payment from the mortgagor in
respect of the principal of the
mortgage debt or the interest
thereon.
(2) A payment under this section
may be made by the agent of the
person by whom it is required to
be made, and shall be made to the
person or the agent of the person
in respect of whose claim the
payment is being made.
(3) No endorsement or memorandum
of any payment written upon any
bill of exchange or promissory
note by or on behalf of the party
to whom such payment is made shall
be deemed to be evidence of such
payment for the purposes of this
Part of this Decree.
Section 20—Effect of Payment.
(1) A payment made in respect of
any debt shall, subject to
subsection (2) of this section,
bind all persons liable in respect
thereof.
(2) A payment made in respect of a
statute-barred debt shall not
bind—
(i)
any person other than the person
making the payment and his
successors, or
(ii) any successor on whom the
liability devolves on the
determination of a preceding
estate or interest in property
under a settlement taking effect
before the date of payment.
(3) A payment by one of several
personal representatives in
respect of any claim to the
movable estate of a deceased
person shall bind the estate of
the deceased person.
(4) A payment in respect of a
mortgage debt by the mortgagor or
any person in possession of the
mortgaged property shall, so far
as any right of the mortgagee to
recover the property is concerned,
bind all persons in possession of
the mortgaged property during the
ensuing period of limitation.
(5) Where two or more mortgagees
of land are by virtue of the
mortgage in possession of the
land, and only one of the
mortgagees receives any payment in
respect of the principal of the
mortgage debt or the interest
thereon, the payment shall bind
only the recipient thereof and his
successors.
(6) Where a mortgagee receiving a
payment under subsection (5) of
this section is entitled to a part
of the mortgaged land and not to
any ascertained part of the
mortgage debt, the mortgagor shall
be entitled to redeem that part of
the land on payment, with
interest, of the part of the
mortgage debt which bears the same
proportion to the whole of the
debt as the value of the part of
the land bears to the whole of the
mortgaged land.
(7) Where there are two or more
mortgagors of land, and the
mortgagee, being in possession of
the land, is paid any sum in
respect of the principal of the
mortgage debt or the interest
thereon by one of the mortgagors,
the payment shall be deemed to
have been made by all the
mortgagors.
Section 21—Appropriation of
Payment in Respect of Debts.
(1) Where—
(a) there exist a number of debts,
and
(b) the person liable therefor (in
this section referred to as the
debtor) makes any payment, whether
on account or generally, to the
person to whom he is liable (in
this section referred to as the
creditor), and
(c) neither the debtor nor the
creditor appropriates the sum paid
to any particular debt or debts;
the following provisions shall
have effect:—
(i)
if some of or all the debts are
not statute-barred, the payment
shall, for the purposes of this
Part of this Decree, unless the
circumstances in which it was made
indicate otherwise, be deemed to
be appropriated pari passu in
respect of each of the debts which
are not statute-barred;
(ii) if all the debts are
statute-barred, then the payment
shall for the purposes of this
Part of this Decree, unless the
circumstances in which it was made
indicate otherwise, be deemed to
be appropriated pari passu in
respect of all of the debts; so
however that no such appropriation
shall operate to make the payment
a payment for the purposes of
sections 19 and 20 of this Decree
unless the circumstances in which
the debtor made the payment
indicate otherwise.
(2) Nothing in subsection (1) of
this section shall, where the
debtor does not appropriate,
operate to prevent the creditor
from appropriating a payment on
account or generally to a
particular debt or to particular
debts or to all the debts (whether
statute-barred debts or not), but
such appropriation shall not by
reason only of its being made by
the creditor operate to make the
payment a payment for the purposes
of sections 19 and 20 of this
Decree in respect of any of such
debts which are statute-barred,
unless the circumstances in which
the payment was made by the debtor
so indicate.
Section 22—Fraud and Mistake.
(1) Where, in the case of any
action for which a period of
limitation is fixed by this
Decree—
(a) the action is based on the
fraud of the defendant or his
agent or of any person through
whom he claims or his agent, or
(b) the right of action is
concealed by the fraud of any such
person, or
(c) the action is for relief from
the consequences of mistake,
the period of limitation shall not
begin to run until the plaintiff
has discovered the fraud or
mistake, as the case may be, or
could with reasonable diligence
have discovered it:
Provided that, for the purposes of
this Decree, concealed fraud by
one of concurrent wrongdoers shall
not suspend time for another or
others.
(2) Nothing in this section shall
enable any action to be brought to
recover, or enforce any charge
against, or set aside any
transaction affecting, any
property which—
(a) in the case of fraud, has been
purchased for valuable
consideration by a person who was
not a party to the fraud and did
not at the time of the purchase
know or have reason to believe
that any fraud had been committed,
or
(b) in the case of mistake, has
been purchased for valuable
consideration subsequently to the
transaction in which the mistake
was made, by a person who did not
know or have reason to believe
that the mistake was made.
Section 23—Extension of Time where
Material Facts not Known to
Plaintiff.
(1) Notwithstanding subsection (1)
of section 3 of this Decree where
it is proved that the material
facts relating to a cause of
action to which that subsection
refers were or included facts of a
decisive character which were at
all times outside the knowledge
(actual or constructive) of the
plaintiff until two years or more
after the commencement of the
three-year period relating to that
cause of action, the plaintiff
may, subject to subsections (2)
and (3) of this section, bring his
action within twelve months after
obtaining knowledge of such facts.
(2) Subsection (1) of this section
shall not apply unless the court
has whether before or after the
commencement of the action granted
leave to the plaintiff for the
purposes of this section.
(3) Nothing in this section shall
be construed as excluding or
otherwise affecting—
(a) any defence which may be
available by virtue of any
enactment other than subsection
(1) of section 3 of this Decree
(whether it is an enactment
imposing a period of limitation or
not) or by virtue of any rule of
law or equity, or
(b) the operation of any enactment
or rule of law or equity which,
apart from this section, would
enable such an action to be
brought after the end of the
period of three years from the
date on which the cause of action
accrued.
(4) In this section a reference to
a three-year period relating to a
cause of action shall include a
reference to any extension
permitted under section 16 or 22
of this Decree in case of
disability, fraud or mistake.
Section 24—Application for Leave
of Court.
(1) Any application for the leave
of the court under section 23 of
this Decree shall be made ex parte,
except in so far as rules of court
may otherwise provide in relation
to applications which are made
after the commencement of a
relevant action.
(2) Where such an application is
made before the commencement of
any relevant action, the court
shall grant leave in respect of
any cause of action to which the
application relates if, but only
if, on evidence adduced by or on
behalf of the plaintiff, it
appears to the court that, if such
an action were brought forthwith
and the like evidence were adduced
in that action, that evidence
would, in the absence of any
evidence to the contrary, be
sufficient—
(a) to establish that cause of
action, apart from any defence
under subsection (1) of section 3
of this Decree, and
(b) to fulfil the requirements of
subsection (1) of section 23 of
this Decree in relation to that
cause of action.
(3) Where such an application is
made after the commencement of a
relevant action, the court shall
grant leave in respect of any
cause of action to which the
application relates if, but only
if, on evidence adduced by or on
behalf of the plaintiff, it
appears to the court that if the
like evidence were adduced in that
action, that evidence would, in
the absence of any evidence to the
contrary, be sufficient—
(a) to establish that cause of
action, apart from any defence
under subsection (1) of section 3
of this Decree, and
(b) to fulfil the requirements of
subsection (1) of section 23 in
relation to that cause of action,
and it also appears to the court
that, until after the commencement
of that action, it was outside the
knowledge (actual or constructive)
of the plaintiff that the matters
constituting that cause of action
had occurred on such a date as
(apart from this section) to
afford a defence under subsection
(1) of section 3 of this Decree.
(4) For the purposes of this
section a fact shall, at any time,
be taken to have been outside the
knowledge (actual or constructive)
of a person if, but only if,—
(a) he did not then know that
fact;
(b) insofar as that fact was
capable of being ascertained by
him, he had taken all such action
(if any) as it was reasonable for
him to have taken before that time
for the purpose of ascertaining
it; and
(c) insofar as there existed, and
were known to him, circumstances
from which, with appropriate
advice, that fact might have been
ascertained or inferred, he had
taken all such action (if any) as
it was reasonable for him to have
taken before that time for the
purpose of obtaining appropriate
advice with respect to those
circumstances:
Provided that in the application
of this subsection to a person at
a time when he was under a
disability and was in the custody
of a parent, any reference to that
person shall be construed as a
reference to that parent.
Section 25—Application of Sections
23 and 24 to Action after Death of
Injured Person.
(1) In relation to any action to
which section 23 of this Decree
refers being an action in respect
of one or more causes surviving
for the benefit of the estate of a
deceased person by virtue of
section 22 of the Civil Liability
Act, 1963 (Act 176), sections 23
and 24 of this Decree shall have
effect subject to the provisions
of subsections (4) and (5) of this
section.
(2) Sections 23 and 24 of this
Decree shall, subject to
subsections (4) to (6) of this
section, apply to an action
brought by virtue of section 16 of
the Civil Liability Act, 1963 as
they apply to an action to which
section 23 of this Decree refers.
(3) In the following provisions of
this section and in Sections 23
and 24 of this Decree as modified
by those provisions, the
expression "the deceased" means
the person referred to in
subsection (1) or (2) of this
section as the case may be.
(4) Subsection (1) of section 23
of this Decree shall not apply to
any action falling within
subsection (1) or (2) of this
section unless the action is
brought before the expiration of
twelve months from the date on
which the deceased died.
(5) For the purposes of the
application of subsection (1) of
section 23 of this Decree to an
action falling within subsection
(1) or (2) of this section—
(a) any reference in the said
subsection (1) of section 23 to
the material facts being outside
the knowledge of the plaintiff
shall be construed as a reference
to such facts being outside the
knowledge of the deceased;
(b) the requirements of that
subsection shall be deemed to be
fulfilled in relation to a cause
of action if either the matters
specified in that subsection (as
modified by the preceding
paragraph) are proved or it is
proved that the material facts
relating to that cause of action
were or included facts relating to
that cause of action which at all
times until his death were outside
the knowledge (actual or
constructive) of the deceased,
and any reference in this Part to
the requirements of the said
subsection (1) of section 23 of
this Decree shall in relation to
an action falling within
subsection (1) or (2) of this
section be construed as a
reference to the requirements of
that subsection as modified by
this subsection.
(6) In the application of sections
23 and 24 of this Decree to an
action brought by virtue of
section 16 of the Civil Liability
Act, 1963 —
(a) a reference to any cause of
action to which an action relates
shall be construed as a reference
to a cause of action in respect of
which it is claimed that the
deceased could (but for his death)
have maintained an action and
recovered damages, and
(b) any reference to establishing
a cause of action shall be
construed as a reference to
establishing that the deceased
could (but for his death) have
maintained an action and recovered
damages in respect thereof.
PART III—ARBITRATIONS
Section 26—Application to
Arbitrations.
(1) This Decree and any other
limitation enactment shall apply
to arbitrations as they apply to
actions in the High Court.
(2) This Part of this Decree shall
apply to an arbitration under any
enactment as well as to an
arbitration pursuant to an
arbitration agreement and section
27 of this Decree shall have
effect, in relation to an
arbitration under any enactment,
as if, for the references to an
arbitration agreement, there were
substituted references to such of
the provisions of the enactment as
relate to the arbitration.
(3) This Decree shall not apply to
any arbitration for which a period
of limitation is fixed by any
other enactment.
(4) Nothing in this Decree shall
affect an arbitration commenced
before the commencement of this
Decree or the title to any
property which is the subject of
any such arbitration.
Section 27—Commencement of
Arbitration.
(1) For the purposes of this
Decree and any other limitation
enactment, an arbitration shall be
deemed to be commenced—
(a) where one party to the
arbitration serves on the other
party a written notice requiring
him to appoint or concur in
appointing an arbitrator, or
(b) where the arbitration
agreement provides that the
reference shall be to a person
named or designated, when one
party serves on the other party a
written notice requiring him to
submit the dispute to the person
so named or designated.
(2) A notice under this section
may be served—
(a) by delivering it to the person
on whom it is to be served, or
(b) by leaving it at the place in
Ghana at which that person
ordinarily resides or carries on
business, or
(c) by sending it by registered
post in an envelope addressed to
that person at the place in Ghana
at which he ordinarily resides or
carries on business, or
(d) in any other manner provided
for in the arbitration agreement.
and where a notice is sent in the
manner prescribed by paragraph (c)
of this section, service thereof
shall unless the contrary is
proved be deemed to have been
effected at the time at which the
letter would have been delivered
in the ordinary course of post.
(3) For the purposes of this
section a company registered under
the Companies Code shall be deemed
to carry on business at its
registered office in Ghana and
every other body corporate and
every unincorporated body shall be
deemed to carry on business at its
principal office or place of
business in Ghana.
Section 28—Accrual Notwithstanding
Term in Agreement.
Notwithstanding any term in any
arbitration agreement to the
effect that no cause of action
shall accrue in respect of any
matter required by the agreement
to be referred until an award is
made under the agreement, the
cause of action shall, for the
purposes of this Decree and of any
other limitation enactment
(whether in their application to
arbitrations or to other
proceedings), be deemed to have
accrued in respect of any such
matter at the time when it would
have accrued but for that term in
the agreement.
Section 29—Power of Court to
Extend Time.
Where the High Court orders that
an award be set aside or orders,
after the commencement of an
arbitration, that the arbitration
shall cease to have effect with
respect to the dispute referred,
the High Court may further order
that the period between the
commencement of the arbitration
and the date of the order of the
High Court shall be excluded in
computing the time fixed by this
Decree or any other limitation
enactment for the commencement of
proceedings (including
arbitration) with respect to the
dispute referred.
PART IV—GENERAL
Section 30—Application of this
Decree.
(1) This Decree shall apply to
proceedings by or against the
Republic as if the Republic were a
private individual.
(2) This Decree shall not apply to
any proceedings in respect of the
forfeiture of a ship or of an
interest in a ship under any
enactment relating to merchant
shipping.
(3) This Decree shall apply to
actions in respect of matters
regulated by customary law.
Section 31—Acquiescence.
Nothing in this Decree shall
affect any equitable jurisdiction
to refuse relief on the ground of
acquiescence or otherwise.
Section 32—Set-off and
Counter-Claim.
For the purposes of this Decree,
any claim by way of set-off or
counterclaim shall be deemed to be
a separate action and to have been
commenced on the same date as the
action in which the set-off or
counterclaim is pleaded.
Section 33—Actions Barred and
Pending.
Nothing in this Decree shall—
(a) enable any action to be
brought which was barred by the
law in force in Ghana immediately
before the commencement of this
Decree except insofar as the cause
of action may be revived by an
acknowledgement or part payment
given or made in accordance with
Part II of this Decree, or
(b) affect any action commenced
before the commencement of this
Decree or the title to any
property which is the subject of
any such action.
Section 34—Interpretation.
(1) In this Decree, unless the
context otherwise requires:—
"acknowledgement" means an
acknowledgement made under and in
accordance with section 17;
"action" includes any proceeding
(other than a criminal proceeding)
in a court established by law;
"action to recover land" includes
an action claiming a declaration
of title to land, and proceedings
by a mortgagee for the delivery of
possession of land by a mortgagor;
"appropriate advice", in relation
to any fact or circumstances,
means the advice of competent
persons qualified, in their
respective spheres, to advise on
the medical, legal and other
aspects of that fact or those
circumstances;
"arbitration", "arbitration
agreement" and "award" have the
same meanings as in the
Arbitration Act, 1961 (Act 38);
"debt" includes any liquidated
pecuniary claim;
"material facts" means any one or
more of the following:—
(a) the fact that personal
injuries resulted from the
negligence, nuisance or breach of
duty constituting that cause of
action;
(b) the nature or extent of the
personal injuries resulting from
that negligence, nuisance or
breach of duty;
(c) the fact that the personal
injuries so resulting were
attributable to that negligence,
nuisance or breach of duty, or the
extent to which any of those
personal injuries were so
attributable:
"mortgage" includes an equitable
mortgage;
"other limitation enactment" means
any other enactment relating to
the limitation of actions;
"payment" means a payment made
under and in accordance with
section 19;
"penalty" does not include a fine
which may be imposed on conviction
for a criminal offence:
"personal injuries" includes any
disease and any impairment of a
person's physical or mental
condition;
"personal representative" means
the executor original or by
representation, or the
administrator of a deceased
person;
"relevant action", in relation to
an application for the leave of
the court, means any action in
connection with which the leave
sought by the applicant is
required;
"rent" means a rent payable under
a lease or other contract of
tenancy (whether in writing or not
and whether express or implied)
and includes a rent payable under
any enactment;
"ship" includes every description
of vessel used in navigation not
propelled by oars;
"statute-barred debt" means a debt
in respect of which the period
fixed by this Decree for the
bringing of an action to recover
it has expired;
"successor" means—
(i)
in relation to a mortgagee his
personal representatives and any
other person on whom the rights
under the mortgage devolve;
(ii) in relation to a person
liable in respect of a debt— his
personal representatives and any
other person on whom the liability
in respect of the debt devolves.
(2) In this Decree unless the
context otherwise requires—
(a) references to a right of
action shall include references
to—
(i)
a cause of action,
(ii) a right to receive money
secured by a mortgage or charge on
any property or to recover
proceeds of the sale of land,
(iii) a right to receive a share
or interest in the movable estate
of a deceased person;
(b) references to the date of the
accrual of a right of action
shall—
(i)
in the case of an action for an
account, be construed as
references to the date on which
the matter arose in respect of
which an account is claimed;
(ii) in the case of an action on a
judgment, be construed as
references to the date on which
the judgment became enforceable;
(iii) in the case of an action to
recover arrears of rent, be
construed as references to the
date on which the arrears became
due;
(c) references to a person in
possession of land shall in the
case of land held under a lease in
writing reserving a yearly rent of
not less than two cedis, be
construed as including references
to a person who wrongfully
claiming to be entitled to the
land in reversion immediately
expectant on the termination of
the lease, is in receipt of the
rent;
(d) references to a debt shall, in
the case of interest, be construed
as references to an instalment of
the interest;
(e) references to a mortgagee who
is by virtue of the mortgage in
possession of any mortgaged land
shall include references to a
mortgagee who has obtained
possession of the mortgaged land
by virtue of an order of the
Court.
(3) For the purposes of any action
by a concurrent wrongdoer to
recover any contribution in
respect of any damage, the date on
which his right to such
contribution accrues (in this
subsection referred to as "the
relevant date") shall be
ascertained as follows:—
(a) if that wrongdoer is held
liable in respect of that damage
by a judgment given in any action
or an award made on any
arbitration, the relevant date
shall be the date on which the
judgment is given or the date of
the award as the case may be;
(b) if, in any case not falling
within the preceding paragraph the
wrongdoer admits liability in
favour of one or more persons in
respect of that damage, the
relevant date shall be the
earliest date on which the amount
to be paid by him in discharge of
that liability is agreed by or on
behalf of the wrongdoer and that
person or each of those persons as
the case may be;
and for the purposes of this
subsection no account shall be
taken of any judgment or award
given or made on appeal in so far
as it varies the amount of damages
awarded against the wrongdoer.
(4) For the purposes of this
Decree any of the material facts
relating to a cause of action
shall be taken, at any particular
time, to have been facts of a
decisive character if they were
facts which a reasonable person,
knowing those facts and having
obtained appropriate advice with
respect to them, would have
regarded at that time as
determining, in relation to that
cause of action, that (apart from
any defence under subsection (1)
of section 3 of this Decree) an
action would have a reasonable
prospect of succeeding and of
resulting in the award of damages
sufficient to justify the bringing
of the action.
Section 35—Repeals.
(1) The enactments specified in
the First Schedule to this Decree
are hereby repealed to the extent
indicated in that Schedule.
(2) The English statutes specified
in the Second Schedule to this
Decree shall cease to apply in
Ghana to the extent indicated in
that Schedule, and accordingly the
references to those statutes in
the First Schedule to the Courts
Act, 1971 (Act 372) are hereby
repealed to the extent that the
said statutes are disapplied by
this subsection.
Section 36—Commencement.
This Decree shall come into
operation on the 1st day of
January, 1973.
SCHEDULES
FIRST SCHEDULE
(Section 35(1))
REPEALS
Short Title
Extent of Repeal
Railways Ordinance (Cap.
233)
Section 90
Minerals Duty Ordinance, 1952 (No.
20) Section 30(2)
Mineral Oil Taxation Ordinance,
1956 (No. 17) Section
33(2).
Local Government Act, 1961 (Act
54) Sections
132 to 134
Public Officers Act, 1962 (Act
114)
Paragraphs (a) and (b) of section
2(1).
Ports Act, 1962 (Act
115)
Section 94 In section 95, for "The
notice referred to in section 94
and any" substitute "Any".
Civil Liability Act, 1963 (Act
176)
Sections 12, 13, 16(6) and
30A.
Civil Liability Act, 1963
(Amendment) The
whole Decree
Decree, 1968 (NLCD
322).
Railway and Ports Act, 1971 (Act
358) Section
19(1)
Local Administration Act, 1971
(Act 359) Section
99.
SECOND SCHEDULE
(Section 35(2))
ENGLISH STATUTES CEASING TO APPLY
Date of
Statute
Short Title
Extent of Cesser
1623 (21
Jac.1.c.16)
Limitation
Act
The whole Statute
1705(4 & 5 Anne, c.3)
Administration of Justice
Act The
whole Statute
1828 (9 Geo.IV,c.14)
Statute of
Frauds Amendment Act The whole
Statute.
except sections 5 & 6.
1833 (3 & 4 Will. IV, c.42)
Civil Procedure Act
The whole
Statute
1856 (19 & 20 Vict.,c.97)
Mercantile Law Amendment Act.
The whole Statute.
COLONEL I.K. ACHEAMPONG
Chairman of the National
Redemption Council
Date of Gazette Notification: 7th
April, 1972.
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