(1.) It is now a matter of history that the erstwhile Portuguese Colonial Possessions of Goa, Daman and Diu became part of the Territory of India from 20th December, 1961. The territories of Goa, Daman and Diu were incorporated as a Union Territory by the Constitution (Twelfth Amendment) Act, 1962, with effect from 20th December, 1961. The Goa, Daman and Diu (Administration) Act, 1962, repealing and re-enacting the provisions of the Goa, Daman and Diu Administration Ordinance 1962, was enacted by Parliament to provide for the administration of the Union Territory of Goa, Daman and Diu for matters connected therewith. S. 5 (1) of the Act declared that all laws in force immediately before the appointed day (20th Dec., 1961) in Goa, Daman and Diu or any part thereof shall continue to be in force therein until amended or repealed by a competent Legislature or other competent authority. Section 5 (2) enabled the Central Government, within two years from the appointed day, to make such adaptations and modifications, whether by way of repeal or amendment, as may be necessary or expedient for the purpose of facilitating application of any such law in relation to the administration of Goa, Daman and Diu as a Union Territory and for the purpose of bringing the provisions of any such law into accord with the provisions of the Constitution. Sec. 6 of the Act empowered the Central Government, by notification in the official Gazette, to extend with such restrictions or modifications, as it thinks fit, to Goa, Daman and Diu, any enactment which is in force in a State at the date of the notification.
(2.) Before Goa, Daman and Diu became part of India, certain laws such as the Portuguese Civil Code, the Portuguese Civil Procedure Code etc. were in force in those Territories. Apart from dealing with multiple other matters, the Portuguese Civil Code contained, various provisions dealing with limitation for suits, applications and appeals. It is undisputed that the provisions of the Portuguese Civil Code relating to Limitation were never repealed either by express Legislative enactment or by any order made by the Central Government in exercise of the powers confered upon it under S. 5 (2) of the Goa, Daman and Diu (Administration) Act, 1962. It is also not in dispute that the Central Government did not issue any notification under S. 6 of the Goa, Daman and Diu (Administration) Act extending the Indian Limitation Act, 1908, to Goa, Daman and Diu with or without modification.
(3.) The Constitution (Twelfth Amendment) Act suitably amended Art. 240 of the Constitution to enable the President to make Regulations for the peace, progress and good Government of the Union Territory of Goa, Daman and Diu until a body was created by Parliamentary Enactment to function as a Legislature for the Union Territory. Pursuant to the powers conferred by Art. 240 of the Constitution, the President promulgated certain Regulations styled as "The Goa, Daman and Diu (Laws) Regulations' from time to time. These Regulations extended certain enactment's to Goa, Daman and Diu with specified modifications. To the extent that any law in force in Goa, Daman and Diu corresponded to any Act which was so extended to those Territories, such law was declared to stand repealed. The Indian Limitation Act, 1908, was not one of the Acts extended to Goa, Daman and Diu under any of the Goa, Daman and Diu (Laws) Regulations. Nor was any Regulation made by the President repealing any of the provisions of the Portuguese Civil Code relating to Limitation.