Limitation bars remedy but not the right

        The Limitation Act is an adjective law because it effects procedure and remedy in all cases. The principle underlying the Limitation Act is not to extinguish cause of action beyond the specified periods but to restrain them from being brought after certain period.
        
                  

        The intention of the Law of Limitation is not give a right where there is none nor to extinguish a right where there is one but to put a bar after a certain period to a suit to enforce an existing right.

        For instance –
        ‘A’ raised a loan of Rs. 5000/- from ‘B’ which was to be repaid before a specific date mutually fixed by them. ‘B’ not only failed to recover the amount of loan from ‘A’ upto such specified date but also failed to file a suit in the Court within the period prescribed in this Act. In such case the right of ‘B’ to seek remedy from the Court has been destroyed but his right to take back his money from ‘A’ still exists.The law of limitation has therefore affected the procedure but not the right.

    A right continues to exist whether the remedy for the same is destroyed or not. It can be enforced if there are some available remedies.

    In First National Bank Ltd. vs Seth Sant Lal AIR 1959 it was held –
"The rule of law is firmly established that a debt does not cease to be a debt because its recovery is barred by the Statute of Limitation."

    If, therefore, a creditor, whose debt becomes statute barred, has any means of realising and enforcing his claim by any method except by a suit, the Limitation Act does not prevent him from recovering his debt by such means. After a debt becomes barred a person is still deemed to owe – it held.

The Limitation Act, 1963 aims to prescribe the period of time for filing suits in the Court. The Act does not destroy the right of a person to sue but prescribes a period of time for doing so. Such period commence from the date when cause of action first arose. No one can get remedy through court if he fails to institute a suit within the time prescribed in this Act. In other words a right or claim of a person is automatically extinguished after the expiry of prescribed time.

        To conclude, the law of limitation is based on the principle that the law aids the diligent and not the indolent. A man who has negligently slept over his rights for an undue length of time will not be allowed to litigate in respect of his rights.