Effects of Fraud or mistake in limitation act


Section 17 provides that the period of limitation would not run until the plaintiff has discovered with due diligence the fraud or the mistake. Similarly, if a document is concealed time will not run until the plaintiff has the means to produce it or compel its production. Until the document is discovered the person will not know that he has a right to sue. Hence the person’s right is unknown until he discovers it. The above rule is applicable

i) To any suit or application based on the fraud of the opposite party.

ii) The knowledge of the right or title is concealed by fraud.

iii) Where the suit is for relief from the consequences of a mistake.

iv) Where the concerned document has been fraudulently concealed by the defendant

The above rule of time not running is not applicable to cases to recover, to enforce a charge, or to set aside any transaction relating to a property, which is purchased for value by a person who is not a party to the fraud or who did not know about the fraud. Similarly, in the case of a mistake, the bona fide purchaser for value who did not know the mistake is protected. Where there is a concealed document, the bona fide purchaser for value who did not know that there was a concealed document, is protected.

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