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Issues: Whether a suit by a dismissed or discharged employee seeking a declaration that the dismissal or termination is illegal, void or inoperative is governed by the Limitation Act and, if so, which article applies.
Analysis: Section 3 of the Limitation Act requires dismissal of every suit instituted after the prescribed period. The expression "period of limitation" is the period prescribed in the Schedule, and the Court must ascertain when the right to sue accrues. A declaratory suit that the dismissal order is void or inoperative does not escape limitation merely because the employee asserts that the order is a nullity. Even if the order is treated as void, it has de facto legal effect until it is challenged in proper proceedings. The residuary provision, Article 113, governs suits for declaration not otherwise specifically covered, and time begins to run when the right to sue accrues. The earlier view that no limitation applies to such suits was held to be incorrect.
Conclusion: Such suits are governed by Article 113 of the Limitation Act, 1963, and are subject to limitation; the contrary view was overruled. The appeals were therefore allowed and the suits dismissed.
Ratio Decidendi: A declaratory suit challenging dismissal or termination as void, illegal or ultra vires is a suit governed by the residuary limitation provision, and it must be brought within the prescribed period counted from the accrual of the right to sue.