The Limitation MCQs Paper-3

The Limitation MCQs Paper-3

Download PDF

 

1. An acknowledgment must be:

a. Government notification

b. Oral only

c. In writing

d. Minor claim only

 

2. Who can make an acknowledgment under Section 18(1)?

a. Party against whom property/right is claimed, or anyone through whom he derives title/liability

b. Minor only

c. Government official

d. Trustee only

 

3. If an acknowledgment is undated, what can be used to prove the date?

a. Government order

b. Oral evidence

c. Trustee affidavit

d. Minor’s testimony

 

4. An acknowledgment is valid even if it:

a. Omits exact nature of property/right

b. Does not exist

c. Government delays

d. Minor disputes only

 

5. Acknowledgment is valid even if it states that:

a. Time for payment/delivery/performance/enjoyment has not yet come

b. Property does not exist

c. Plaintiff is minor

d. Government approval pending

 

6. Acknowledgment is valid if it is coupled with refusal to perform or:

a. Trustee approval

b. Government notification

c. Minor dispute

d. Claim of set-off

 

7. Acknowledgment can be addressed to:

a. Someone other than the person entitled

b. Only the entitled person

c. Government official only

d. Trustee only

 

8. The term “signed” includes:

a. Only trustee

b. Signed personally or by an authorized agent

c. Only personally

d. Only government official

 

9. Does an application for execution of a decree or order count as acknowledgment of property/right?

a. Yes

b. No

c. Only for minors

d. Only for trustees

 

10. Section 18 ensures limitation does not run unfairly when:

a. Trustee involved

b. Minor involved

c. Government delays

d. Party admits liability in writing

 

11. If acknowledgment is signed by agent, it is:

a. Valid

b. Invalid

c. Counted only for minors

d. Ignored

 

12. Oral evidence of the contents of acknowledgment is:

a. Allowed

b. Not allowed

c. Allowed only for minors

d. Allowed for government claims

 

13. Fresh period of limitation begins from the date of acknowledgment, even if:

a. Minor involved

b. Government delays

c. Original period has not expired

d. Trustee involved

 

14. Section 18 prevents limitation from running unfairly when:

a. Party has admitted liability in writing

b. Minor involved

c. Government delays

d. Trustees involved

 

15. Section 19 of the Limitation Act, 1963 deals with:

a. Acknowledgment in writing

b. Effect of fraud or mistake

c. Effect of payment on account of debt or interest on legacy

d. Legal disability

 

16. When is a fresh period of limitation computed under Section 19?

a. From government notification

b. From the original filing date

c. From the date the payment is made

d. From plaintiff’s birth

 

17. An acknowledgment of payment is required except for:

a. Payment of interest made before 1st January 1928

b. Payment of principal

c. Payment by minor

d. Payment by trustee

 

18. Acknowledgment of payment must be:

a. Government notification

b. Oral only

c. In handwriting of the person making payment or signed by him

d. Minor claim only

 

19. For mortgaged land in possession of the mortgagee, what is deemed to be payment?

a. Receipt of rent or produce of such land

b. Government notification

c. Trustee approval

d. Minor claims

 

20. Does the term “debt” under Section 19 include money payable under a court decree/order?

a. Yes

b. No

c. Only for minors

d. Only for government claims

 

21. Section 19 applies when payment is made:

a. Before the expiration of the prescribed period

b. After limitation has expired

c. Only for minors

d. Only for trustees

 

22. A fresh period of limitation is not computed for:

a. Payment by agent

b. Ordinary debt

c. Interest on legacy

d. Money payable under a decree/order of a court

 

23. The acknowledgment of payment must be:

a. By government officer

b. Oral only

c. Written

d. Only by trustee

 

24. Limitation resets after:

a. Payment on account of debt or interest on legacy

b. Minor reaches majority

c. Government approval

d. Trustee approval

 

25. Section 19 does not apply to:

a. Payment by agent

b. Debt owed to private person

c. Interest on legacy

d. Money payable under a court decree/order

 

26. Section 20 of the Limitation Act, 1963 deals with:

a. Effect of acknowledgment or payment by another person

b. Effect of payment on account of debt or interest

c. Acknowledgment in writing

d. Effect of fraud or mistake

 

27. In case of a person under disability, who can sign an acknowledgment or make a payment under Section 20?

a. Government officer

b. Minor only

c. Lawful guardian, committee, manager, or their authorized agent

d. Trustee only

 

28. Section 20 clarifies that for joint contractors, partners, executors, or mortgagees:

a. Payment or acknowledgment by one does not make others chargeable

b. Payment by one makes all liable

c. Government approval is required

d. Trustee approval is required

 

29. Under Section 20, acknowledgment or payment by a limited owner governed by Hindu law is valid against:

a. Minor only

b. Government only

c. Trustee only

d. Reversioner succeeding to the liability

 

30. For a Hindu Undivided Family (HUF), acknowledgment or payment by the manager is deemed:

a. Made on behalf of the whole family

b. Valid only for the manager

c. Invalid unless all members sign

d. Valid only for government claims

 

31. Section 20 applies to which previous sections?

a. Sections 14 and 15

b. Sections 16 and 17

c. Sections 18 and 19

d. Sections 12 and 13

 

32. Payment by one joint contractor does not:

a. Make others automatically liable

b. Reset limitation for all

c. Apply to debt

d. Apply to legacy

 

33. Section 20 ensures that persons under disability can have acknowledgment/payment made by:

a. Trustee only

b. Minor

c. Authorized representatives

d. Government only

 

34. Section 20 ensures fairness for:

a. Persons under disability and joint owners

b. Government only

c. Trustees only

d. Minor only

 

35. Section 20 clarifies that joint liability is not automatically imposed by:

a. Trustee only

b. Payment by government

c. Minor’s action

d. Payment or acknowledgment by one person

 

36. Sections 18, 19, and 20 together ensure:

a. Limitation period can be reset by acknowledgment or payment, including by authorized agents

b. Limitation period is fixed and cannot be reset

c. Only applies to minors

d. Only applies to trustees

 

37. Section 21 of the Limitation Act, 1963 deals with:

a. Effect of payment on account of debt or interest

b. Effect of acknowledgment in writing

c. Effect of substituting or adding new plaintiff or defendant

d. Effect of fraud or mistake

 

38. When a new plaintiff or defendant is added after institution of suit, limitation is computed:

a. From the date the new party is added

b. From the original filing date only

c. From government notification

d. From the birth of the plaintiff

 

39. Court may direct the suit to be deemed instituted on an earlier date if:

a. Party is minor

b. Omission to include the new party was due to a mistake in good faith

c. Government approval pending

d. Trustee approval pending

 

40. Sub-section (1) does not apply when:

a. A party is added due to assignment or devolution of interest

b. Payment is made by the party

c. Plaintiff acknowledges liability

d. Trustee is involved

 

41. Sub-section (1) does not apply if:

a. Fraud is involved

b. Payment is made on account of debt

c. Plaintiff is made defendant or defendant is made plaintiff

d. Minor involved

 

42. If omission to include a new party is not in good faith, the suit is:

a. Deemed instituted from the date the party was added

b. Deemed instituted from original filing date

c. Invalid

d. Requires government approval

 

43. If a new plaintiff is substituted due to assignment of interest during the suit, limitation:

a. Starts from government notification

b. Starts from original filing date

c. Is computed from date the new party is added, but sub-section (1) does not apply

d. Starts from date of judgment

 

44. Limitation for a newly added defendant cannot:

a. Be backdated unless omission was in good faith

b. Be computed from date of original suit

c. Be ignored

d. Be waived by court

 

45. Section 21 applies after the institution of the suit:

a. Only for minor

b. False

c. True

d. Only for government claims

 

46. Section 21 applies to:

a. Both plaintiff and defendant

b. Only plaintiff

c. Only defendant

d. Only minor

 

47. Limitation period for new party starts:

a. From government approval

b. From original filing date

c. From date of judgment

d. From date of addition, unless backdating allowed by court

 

48. Section 22 of the Limitation Act, 1963 deals with:

a. Continuing breaches and torts

b. Effect of acknowledgment

c. Substitution of parties

d. Payment on account of debt

 

49. In a continuing breach of contract, when does a fresh period of limitation begin?

a. From the original contract date

b. Only from the date of discovery

c. At every moment the breach continues

d. From government notification

 

50. In a continuing tort, the limitation period:

a. Runs afresh for as long as the tort continues

b. Runs only once from the start

c. Runs from the date of filing a complaint

d. Is fixed by the government

 

51. Section 22 applies to:

a. Only contracts

b. Both continuing breaches of contract and continuing torts

c. Only torts

d. Only government claims

 

52. A tort that is ongoing for 3 years allows:

a. Fresh limitation for each moment of the tort

b. Limitation runs only once

c. Limitation cannot be computed

d. Only trustee can sue

 

53. In a contract breached continuously for 6 months, limitation:

a. Only court decides

b. Runs only from first breach

c. Is waived automatically

d. Resets continuously until the breach ends

 

54. Section 22 is relevant to:

a. Continuous wrongs

b. One-time breaches

c. Government notifications

d. Minor cases only

 

55. If a tort lasts 1 year, plaintiff can file suit:

a. Only after court permission

b. Only after 1 year

c. Any time during the 1 year, as limitation resets continuously

d. Only after government notification

 

56. Section 22 applies to:

a. Civil wrongs (torts) and contractual breaches

b. Criminal cases only

c. Trustee claims only

d. Minor claims only

 

57. Section 23 of the Limitation Act, 1963 deals with:

a. Substitution of parties

b. Continuing breaches and torts

c. Effect of acknowledgment

d. Suits for compensation for acts not actionable without special damage

 

58. In Section 23, when does the period of limitation start?

a. From the time the injury or special damage occurs

b. From the date of the wrongful act

c. From the date of filing the suit

d. From government notification

 

59. Acts which do not give rise to a cause of action unless injury results are called:

a. Fraudulent acts

b. Continuing torts

c. Acts not actionable without special damage

d. Minor acts

 

60. Section 23 ensures:

a. Limitation starts only when actual damage occurs

b. Limitation starts from wrongful act only

c. Limitation cannot be computed

d. Government approval is mandatory

 

61. If an act occurs but no injury results, the limitation:

a. Starts immediately

b. Does not start

c. Starts from government notification

d. Cannot be computed

 

62. Example of Section 23 scenario:

a. Defamation causing actual pecuniary loss

b. Continuing breach of contract

c. Payment made on debt

d. Substitution of party in suit

 

63. A plaintiff suffers special damage on 1st Jan, 2023. Limitation starts:

a. From filing date

b. From date of act

c. From 1st Jan, 2023

d. From government notification

 

64. Limitation for compensation under Section 23 is computed:

a. From government order

b. From original act date

c. From death of plaintiff

d. From occurrence of actual injury

 

65. If damage occurs 2 years after the act, limitation:

a. Starts from the time of damage

b. Starts from the act

c. Starts from court permission

d. Starts from filing

 

66. In a defamation case causing pecuniary loss after 6 months, limitation:

a. Starts from filing date

b. Starts from date of statement

c. Starts from date loss occurs

d. Starts from court order

 

67. Section 24 of the Limitation Act, 1963 deals with:

a. Computation of time mentioned in instruments

b. Continuing breaches and torts

c. Effect of acknowledgment

d. Suits for special damage

 

68. Under Section 24, instruments are deemed to be made with reference to:

a. Fiscal year

b. Indian national calendar

c. Lunar calendar

d. Gregorian calendar

 

69. Section 24 ensures that:

a. Dates in instruments are uniformly interpreted for limitation

b. Limitation starts from government notification

c. Limitation is waived automatically

d. Courts can change dates

 

70. Section 24 avoids confusion in limitation by:

a. Allowing flexible interpretation

b. Ignoring dates in instruments

c. Standardizing calendar system for instruments

d. Using court discretion

 

71. Section 24 applies to which of the following?

a. All instruments mentioned under Limitation Act

b. Only wills

c. Only promissory notes

d. Only contracts with trustees

 

72. Section 24 is important because:

a. It suspends limitation

b. It extends limitation periods

c. It standardizes computation of limitation across India

d. It substitutes parties in suits

 

73. Section 24 applies to limitation computation for:

a. Contracts, promissory notes, bonds, deeds, and other instruments

b. Criminal acts only

c. Continuing torts only

d. Government notifications only

 

74. Section 25 of the Limitation Act, 1963 deals with:

a. Effect of acknowledgment

b. Continuing breaches and torts

c. Acquisition of easement by prescription

d. Computation of time in instruments

 

75. The period required to acquire an easement by prescription over private property is:

a. 10 years

b. 30 years

c. 20 years

d. 25 years

 

76. For Government property, the period to acquire an easement by prescription is:

a. 30 years

b. 20 years

c. 25 years

d. 15 years

 

77. Which of the following is required for an easement by prescription?

a. Court order

b. Written agreement

c. Peaceful and uninterrupted enjoyment

d. Government sanction

 

78. Section 25 requires that the enjoyment of easement must be:

a. As of right and without interruption

b. By force or coercion

c. By government notification

d. Only after filing a suit

 

79. The 20-year period for acquiring an easement is computed:

a. From the date of Government notification

b. Ending within two years before the institution of the suit

c. From the date of registration of property

d. From the start of litigation

 

80. An interruption under Section 25 is counted only if:

a. There is actual discontinuance by someone other than the claimant

b. The claimant files a suit

c. Government objects

d. Court orders cessation

 

81. Which rights can be acquired by prescription under Section 25?

a. Government offices

b. Light, air, way, watercourse, use of water, or other easements

c. Ownership of land

d. Trustee property

 

82. Section 25 makes the easement:

a. Revocable at any time

b. Absolute and indefeasible

c. Conditional on government approval

d. Valid only for 10 years

 

83. The enjoyment must be:

a. Open, peaceable, and as of right

b. Secret and undisclosed

c. By coercion

d. Approved by local authority

 

84. If the easement is obstructed, it is not considered interruption unless:

a. Court allows it

b. Government intervenes

c. The obstruction is by someone other than the claimant and acquiesced for one year

d. Plaintiff consents immediately

 

85. Sub-section (3) of Section 25 applies when:

a. The property belongs to the Government

b. Private property is involved

c. Easement is disputed in court

d. Plaintiff dies before claiming

 

86. The phrase “as of right” in Section 25 means:

a. Approved by government

b. Exercised secretly

c. Exercised openly and without secrecy, claiming legal right

d. Exercised only after filing suit

 

87. Section 25 applies to which type of easements?

a. Only affirmative easements

b. Affirmative or negative easements

c. Only negative easements

d. Government easements only

 

88. Section 26 of the Limitation Act, 1963 deals with:

a. Exclusion in favour of reversioner of servient tenement

b. Acquisition of easements by prescription

c. Continuing breaches and torts

d. Effect of acknowledgment

 

89. The period during which an easement is enjoyed under a life interest or term exceeding 3 years:

a. Counts only if government approval is given

b. Is included in the 20-year period

c. Counts only after court approval

d. Is excluded from the 20-year period

 

90. The exclusion applies to:

a. Land or water held for life or term exceeding three years

b. Government property only

c. Short-term leases under three years

d. Personal property only

 

91. Under Section 26, a claim to an easement against the reversioner must be made:

a. Within 20 years from the original enjoyment

b. Within 3 years after the determination of the prior interest

c. After government approval

d. After court order

 

92. The main purpose of Section 26 is to:

a. Protect the reversioner from claims during the prior interest

b. Extend the easement period

c. Waive limitation for easements

d. Allow government control over easements

 

93. “Servient tenement” under Section 26 refers to:

a. Personal property

b. Only government land

c. Land or water over which an easement is enjoyed

d. Leasehold under three years

 

94. If the easement was enjoyed for 5 years under a life interest, the 5 years:

a. Are excluded from the 20-year period for prescription

b. Are counted toward the 20-year period

c. Are ignored completely

d. Require court sanction

 

95. The 20-year period to acquire an easement does not include:

a. Period of interruption by claimant

b. Period after government notification

c. Period during which easement was enjoyed under a life interest or long-term lease

d. Period during litigation

 

96. The claim against a reversioner must be resisted:

a. Within three years next after determination of prior interest

b. Within twenty years

c. Only after court order

d. Anytime

 

97. The minimum term of interest for Section 26 to apply is:

a. 2 years

b. 1 year

c. More than 3 years

d. 10 years

 

98. Section 26 applies specifically to:

a. Easements over land or water with life interest or term > 3 years

b. Personal property only

c. Government leases under 3 years

d. Only light and air easements

 

99. The period during which easement is enjoyed under prior interest is:

a. Ignored completely

b. Counted in full

c. Counted only after court order

d. Not counted towards prescription for the reversioner

 

100. Section 27 of the Limitation Act, 1963 deals with:

a. Extinguishment of right to property

b. Acquisition of easements by prescription

c. Continuing breaches and torts

d. Effect of acknowledgment

 

101. Under Section 27, what happens when the limitation period for a suit for possession expires?

a. The right to the property is suspended

b. The right to the property is extended

c. The right to the property is extinguished

d. The right is preserved indefinitely

 

102. The purpose of Section 27 is to:

a. Ensure certainty and finality in property disputes

b. Extend the limitation period for property suits

c. Allow unlimited claims to property

d. Protect tenants only

 

103. After the period of limitation expires under Section 27, a person can:

a. Claim the property only with court permission

b. Claim the property at any time

c. No longer claim the property

d. Claim only partial interest in property

 

104. The extinguishment of the right under Section 27 occurs:

a. Automatically after the limitation period expires

b. Only after court order

c. Only with government sanction

d. Upon filing a fresh suit

 

105. If the limitation period is 12 years for a suit to recover property, and the person files after 13 years, the effect under Section 27 is:

a. Court may allow claim

b. Right is preserved

c. Right to property is extinguished

d. Only partial claim allowed

 

106. Extinguishment of property rights under Section 27 is:

a. Complete and final

b. Temporary

c. Conditional on court approval

d. Only partial

 

107. Section 29 of the Limitation Act, 1963 primarily deals with:

a. Continuous breaches

b. Savings

c. Extinguishment of property rights

d. Legal disability

 

108. Section 29(1) states that nothing in this Act shall affect:

a. Section 25 of the Indian Contract Act, 1872

b. Section 26 of the Limitation Act

c. Section 18 of the Limitation Act

d. Section 27 of the Limitation Act

 

109. If a special or local law prescribes a different period of limitation, then:

a. Sections 4–24 are ignored entirely

b. The Limitation Act does not apply at all

c. Section 3 of the Limitation Act applies as if that period were prescribed by the Schedule

d. Only Section 25 applies

 

110. The Limitation Act, 1963 does not apply to suits under:

a. Laws governing marriage and divorce, unless otherwise provided

b. Property disputes

c. Easements

d. Debt recovery suits

 

111. Sections 25 and 26 and the definition of “easement” in Section 2:

a. Apply universally in India

b. Do not apply in territories governed by the Indian Easements Act, 1882

c. Apply only to government land

d. Apply only to urban property

 

112. The main purpose of Section 29 is to:

a. Preserve the operation of other special or local laws

b. Extend limitation for easements

c. Suspend limitation for property disputes

d. Exclude minors from limitation

 

113. Under Section 29(2), for determining the period of limitation under a special or local law:

a. Only Section 3 is ignored

b. Sections 4 to 24 are completely ignored

c. Sections 4 to 24 are fully applied regardless of local law

d. Sections 4 to 24 of the Limitation Act apply only as far as not excluded

 

114. If a law prescribes a shorter period of limitation than the Limitation Act, then:

a. The special law’s period is treated as the prescribed period under Section 3

b. The Limitation Act period always applies

c. Section 25 overrides the special law

d. The period is extended automatically to 20 years

 

115. The effect of Section 29 is to:

a. Suspend all limitation periods

b. Ensure the Limitation Act coexists with other laws

c. Double limitation periods for property

d. Overrule all local laws

 

116. Section 29(3) explicitly excludes which type of suits from Limitation Act?

a. Suits under marriage and divorce laws

b. Suits for easements

c. Suits for debt recovery

d. Suits for property possession

 

117. Section 29 ensures that Limitation Act does not:

a. Apply to government property

b. Conflict with special or local laws

c. Extend the limitation period for debts

d. Apply to short-term leases

 

118. Section 30 of the Limitation Act, 1963 deals with:

a. Transitional provisions relating to suits and appeals where the prescribed period is shorter than under the 1908 Act

b. Legal disability

c. Continuous breaches

d. Effect of fraud or mistake

 

119. Under Section 30(a), for suits with a shorter period under the 1963 Act, a suit may be instituted within:

a. Seven years after commencement of the 1963 Act or period prescribed by 1908 Act, whichever is earlier

b. Five years from the date of cause of action

c. Ninety days after commencement

d. The entire period prescribed under 1963 Act only

 

120. For appeals or applications under Section 30(b), the period is:

a. Extended to ten years

b. Seven years after commencement of 1963 Act

c. Entire period prescribed under 1963 Act

d. Ninety days after commencement of 1963 Act or period under 1908 Act, whichever is earlier

 

121. The proviso in Section 30(a) ensures that:

a. Any period already expired under the 1908 Act is considered in computing limitation under the 1963 Act

b. Only the 7-year period applies

c. All suits are barred automatically

d. Period is doubled

 

122. Section 30 ensures that:

a. Only suits under 1963 Act apply

b. Limitation periods are ignored

c. No person loses the right to sue merely because the 1963 Act prescribes a shorter limitation period

d. Easements are excluded

 

123. The period of 90 days under Section 30(b) applies from:

a. The commencement of the Limitation Act, 1963

b. The date of cause of action

c. The date of institution of the suit

d. The date of judgment

 

124. Section 30 is a:

a. Section on acknowledgment

b. Definition section

c. Transitional provision

d. Section on continuous breaches

 

125. Section 30(a) applies to:

a. Suits only

b. Appeals only

c. Applications only

d. Easements

 

126. Section 30(b) applies to:

a. Easements only

b. Suits only

c. Appeals and applications

d. Mortgages only

 

127. The commencement date of the Limitation Act, 1963 is important in Section 30 because:

a. The 7-year and 90-day transitional periods start from it

b. It determines legal disability

c. It extends limitation for easements

d. It suspends limitation for fraud cases

 

128. Section 30A was inserted in the Limitation Act, 1963 to address:

a. Legal disability

b. Transitional provisions relating to suits and appeals from the Limitation Act, Samvat 1995

c. Continuous breaches

d. Effect of fraud or mistake

 

129. Under Section 30A(a), a suit for which the period under 1963 Act is shorter than Samvat 1995 can be instituted within:

a. One year after commencement of the Jammu & Kashmir Reorganisation Act, 2019 or the period under Samvat 1995, whichever expires earlier

b. Seven years after commencement

c. Ninety days after commencement

d. The entire period prescribed under 1963 Act only

 

130. For appeals/applications under Section 30A(b), the period is:

a. Entire period prescribed under 1963 Act

b. One year after commencement

c. Ninety days after commencement of the Jammu & Kashmir Reorganisation Act, 2019 or period under Samvat 1995, whichever expires earlier

d. Extended to seven years

 

131. Section 30A is relevant due to:

a. Legal disability

b. Reorganisation of Jammu & Kashmir and Ladakh

c. Continuous breaches

d. Fraud

 

132. Section 30A(a) applies specifically to:

a. Suits only

b. Appeals only

c. Applications only

d. Easements

 

133. Section 30A(b) applies to:

a. Easements only

b. Suits only

c. Appeals and applications

d. Mortgages only

 

134. Section 30A was inserted vide:

a. Limitation Act, 1908

b. Jammu & Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020

c. Hindu Succession Act

d. Indian Contract Act

 

135. Section 31 of the Limitation Act, 1963 deals with:

a. Barred or pending suits, appeals, and applications

b. Legal disability

c. Continuous breaches

d. Effect of acknowledgment

 

136. According to Section 31(a), the 1963 Act cannot:

a. Extend limitation for minors

b. Enable a suit barred under the Limitation Act, 1908 before commencement of 1963 Act

c. Suspend limitation for fraud

d. Extend limitation for acknowledgment

 

137. A suit barred under the Limitation Act, 1908 before 1963 Act came into force:

a. Cannot be revived under the 1963 Act

b. Can be instituted under Section 31

c. Can be extended for minors

d. Can be extended by Section 30A

 

138. Section 31(a) applies to:

a. Only legal disability cases

b. Only suits under Limitation Act, 1963

c. Only acknowledgment cases

d. Barred suits, appeals, and applications under Limitation Act, 1908 before 1963 Act

 

139. Section 31(b) protects:

a. Acknowledgments

b. Barred suits

c. Pending suits, appeals, or applications

d. Continuous torts

 

140. Section 31 provides transitional clarity between:

a. Limitation Act, 1908 and Limitation Act, 1963

b. Limitation Act, 1963 and Hindu Succession Act

c. Limitation Act, 1963 and Indian Easements Act

d. Limitation Act, 1963 and Indian Contract Act