Limitation Act 1963 Section 23: Suits for Compensation for Acts Not Actionable Without Special Damage
23. Suits for compensation for acts not actionable without special damage.—In the case of a suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results therefrom, the period of limitation shall be computed from the time when the injury results.
Explanation Limitation Act 1963 Section 23
Section 23 of the Limitation Act 1963 is about lawsuits where you can’t sue for compensation until a specific harm—called special damage—actually happens. In simple terms, some actions, like a small nuisance, aren’t enough to take to court unless they cause a real, measurable loss, like money or property damage.
The time limit to file such a lawsuit starts only when that harm occurs. For example, if someone’s activity doesn’t bother you until it costs you business, you start counting the deadline from when you faced that loss, not when the activity began. This rule gives you a fair shot to sue once the damage hits.
Key Points Limitation Act 1963 Section 23
- Applies to suits requiring special damage (specific, measurable harm) to be actionable.
- Limitation period begins when the special damage is sustained, not when the act occurs.
- Usually tied to a 3-year limit for torts per the Act’s Schedule.
- Ensures fairness for harms that show up later.
- Requires proof of special damage to start the limitation clock.
Examples Limitation Act 1963 Section 23
- Neighbor’s construction in 2023 causes your house to crack in 2025—3-year limit starts 2025, ends 2028.
- Rumors spread in 2022, but you lose a contract in 2024—3-year limit begins 2024, ends 2027.
- Blocked road since 2021 hurts your shop’s sales in 2025—3-year limit starts 2025, ends 2028.
- Faulty product sold in 2023 damages your machine in 2024—3-year limit runs from 2024, ends 2027.
- Ongoing noise becomes a problem when it stops your event in 2025—limit starts 2025, ends 2028.
Case Laws Limitation Act 1963 Section 23
Jay Laxmi Salt Works v. State of Gujarat (1994): Supreme Court held limitation starts when special damage results, not at the act’s start (AIR 1994 SC 225).
Bhimji v. Bombay Municipal Corporation (1930): Limitation for compensation begins with specific injury, not earlier (ILR 54 Bom 957).