Limitation and Foreign Contracts

As regards suits instituted in India on contracts which are entered into by the parties concerned outside India, the rules of limitation contained in the Limitation Act, 1963, would apply to suits instituted in India. Foreign rules of limitation may, however, be a defence to a suit on a foreign contract only when the rule has extinguished the contract, and the parties were domiciled in the place of contracting during the prescribed period. The defence of foreign law is extinguished and not when merely the remedy is barred. This principle applies not only to suits on contracts'but' to all suits and proceedings.