Section 7 of the Limitation Act deals with the extension of limitation in cases of liability for a person in respect of any immovable property. This section provides for an exception to the standard limitation period when the person liable is a minor or of unsound mind. It essentially allows for an extension of time for bringing a legal action in cases where a person's liability relates to immovable property and they are under certain incapacities.
Option A: Liability in respect of any immovable property is not applicable here because Section 7 pertains to this very category of liability. It applies to cases involving immovable property and the specified incapacities.
Option B: Liability in respect of any movable property is incorrect because Section 7 does not deal with liabilities related to movable property. The correct answer to the question is a category of liability that is not covered by Section 7.
Option C: Contractual liability is not applicable here because the question specifically asks about the category of liability that Section 7 does not apply to.
Option D: None of the above is not the correct answer in this context, as there is a specific category of liability mentioned in the question that Section 7 does not apply to.
Given the options provided, the correct answer is Option B: Liability in respect of any movable property.
Under section 3, Limitation Act, 1963 cross suit by way of set-off shall be deemed to have been instituted