Local limitation law under the Portuguese Civil Code continued in Goa, Daman and Diu despite the Limitation Act, 1963.

The Portuguese Civil Code limitation provisions applicable in Goa, Daman and Diu were treated as a local law because they operated only within that territory. Section 29(2) of the Limitation Act, 1963 preserves limitation periods fixed by a special or local law and reads them into the Act unless expressly excluded. On that basis, the territorial limitation regime under the Portuguese Civil Code was not displaced by the Limitation Act, 1963, which repealed only the Indian Limitation Act, 1908. The analysis states that no repugnancy arose and the civil code limitation rules continued to govern suits in the Union Territory.

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Issues: Whether the provisions of the Portuguese Civil Code relating to limitation continued to apply in Goa, Daman and Diu after the Limitation Act, 1963 came into force, or stood repealed by repugnancy or necessary implication.

Analysis: The territorial laws in force in Goa, Daman and Diu were continued by the governing administration legislation unless amended or repealed, and the Limitation Act, 1963 repealed only the Indian Limitation Act, 1908. Section 29(2) of the Limitation Act, 1963 saves periods of limitation prescribed by any special or local law by treating them as if they were prescribed in the Schedule to the Act, and the Court held that the Portuguese Civil Code, being operative only in the Union Territory and confined to that area, was a local law. Once so characterised, its limitation provisions were absorbed into the Limitation Act, 1963 and no question of repugnancy survived.

Conclusion: The limitation provisions of the Portuguese Civil Code were not repealed and continued to operate in Goa, Daman and Diu under Section 29(2) of the Limitation Act, 1963.

Final Conclusion: The appeals failed because the territorial limitation regime under the Portuguese Civil Code remained legally effective, and the suits were governed by that regime rather than by the general periods under the Limitation Act, 1963.

Ratio Decidendi: A territorial law prescribing limitation for a confined area is a local law within Section 29(2) of the Limitation Act, 1963, and its limitation periods are saved and read into the Act unless expressly excluded.

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