Kerala High Court Clarifies Limitation Begins When Continuing Contract Breach Ceases

The Kerala High Court has clarified that under Section 55 of the Limitation Act, 1963, the limitation period for filing a suit begins when a continuous breach of contract ceases.

The Bench held that a continuing breach endures only during the contract’s subsistence and ceases upon its termination or expiry.

The case arose from a timber contract executed in 1998, which expired on April 3, 2001, wherein the respondent failed to secure the requisite forest passes.

The Court held that since the breach ended with the contract’s expiry, the limitation commenced from that date, rendering the suit filed in January 2005 barred by limitation.

[V. Chandran v Aliamma George]