S
18. Effect of acknowledgment in writing:-
Acknowledgment means a
definite, clear admission of existing liability.
It is not necessary that there
should be promise to pay. An acknowledgment does not create any new
right of action but only enlarges the time and has the effect of
making a new period run from the date of acknowledgment. Under this
section, an acknowledgment is not limited in respect of a debt only,
it may be in respect of “any property or right” which is the
subject matter of the suit. There must be an unqualified,or an
admission qualified by a condition which is fulfilled.
Ingredients
of S 18 and essentials of a valid acknowledgment:-
To constitute a valid
acknowledgment and thus to give a fresh period of limitation under
this section,the following conditions must be satisfied.
1) The acknowledgment must
have been made before the expiration of the period prescribed.
2) The acknowledgment must
have been made by the party against whom the right is then claimed or
by any person through whom he derives his title or liability.
3)
acknowledgment must be in writing: however, if the
acknowledgment is undated, oral
evidence may be given of the time when it was signed.
4) Such acknowledgment must
have been signed by the party, his agent or party against whom the
right is then claimed or by any person through whom he derives his
title or liability.
5)
The acknowledgment must be an acknowledgment of liability. It is not
necessary that the acknowledgment must also contain or import a
promise to pay;a simple admission that debt is due,is quite
sufficient under the Indian law.
An
acknowledgment will be sufficient for the purposes of this section
even though it is coupled with a refusal to pay,or with a claim to
set off, or with a statement that time for payment
has not yet arrived. But all the same, it must be an admission of
liability: a statement by the debtor implying that there is no
liability does not amount to an acknowledgment.
6) The acknowledgment is not
required to be made to the creditor or person entitled to the right
or the property; it may be made to any person, even to one who has no
connection with creditor.{See Explanation (a)}.
An acknowledgment of
liability need not be express;it may by implication.
S
18 LIMITATION ACT AND S 25 OF INDIAN CONTRACT ACT:-
The distinction between an
'acknowledgment' under S.18 of limitation act and 'promise' under S
25 of Contract Act is of great importance. Both must be in writing
signed by the party or his agent authorized in that behalf, and both
create a fresh starting point of limitation. But while an
acknowledgment under limitation Act is required to be made before
expiration of period of limitation, a promise under S 25 of contract
may be made after limitation period. If a debt is time barred, there
can be no acknowledgment of the debt; there can only be a promise to
pay that sum. Such a promise would amount to a new contract.
New
period,how computed
A new period of limitation
shall be computed from time of acknowledgment that is from the time
when it was signed.
S
19. EFFECT OF PAYMENT ON ACCOUNT OF DEBT OR INTEREST ON LEGACY:-
Ingredients
of this section
This section provides that
fresh period of limitation, will be computed in the following cases
of payment:
a) it is paid before the
expiration of the prescribed period.
b) it is paid by the person
liable to pay debt or interest or legacy,or by his agent duly
authorized in this behalf.
c) an acknowledgment of
payment appears in the hand writing of or in a writing signed by the
person making the same.
Just as,where acknowledgment
of liability is made under S 18 of the Act,all the period that has
run up to then is cancelled and a fresh period commences so also
where payment is made under this section,a fresh starting point of
limitation is afforded to the creditor.
S
20. EFFECT OF ACKNOWLEDGMENT OR PAYMENT BY ANOTHER PERSON
SCOPE
OF THIS SECTION
This section explains the
meaning of the words “agent duly authorized” as used in S 11 and
S 18. According to this section,lawful guardian, committee or manager
would be an agent duly authorized to sign the acknowledgment or to
make the payment. So also agents so authorized by such guardian,
committee or manager. The expression lawful guardian is not limited
to guardian appointed by the court. It means any person who is
entitled to act as guardian under the personal law of the minor.
Manager
of a joint family
Sub S 3(a) of this section
lays down two conditions in order that the acts of a member of a
joint hindu family specified in S 18 and S 19 may extend the period
of limitation against all the members. These conditions are
1) that the loan must have
been incurred by or on behalf of the joint family, and
2) that the specified acts
must be the acts not of any member of the family but must be the acts
of the karta.
It is not, however necessary
that the document evidencing the loan must on the face of it show
that the loan has been incurred on behalf of joint family. If the
fact that the loan has been incurred on behalf of family be
established on the evidence,Sub S 3(b) of this section is
attracted,if acknowledgment or part payment of the principal and
interest has been endorsed by karta.
S
21. EFFECT OF SUBSTITUTING OR ADDING NEW PLAINTIFF OR DEFENDANT
Sub S 1. Where after
the institution of a suit, a new plaintiff or defendant is
substituted or added, the suit shall as regards him, be deemed to
have been instituted when he was so made a party;
Provided that where the court
is satisfied that the omission to include a new plaintiff or
defendant was due to a mistake made in good faith,it may direct that
suit as regards such plaintiff or defendant shall be deemed to have
been instituted on any earlier date.
Sub S 2. Nothing in sub
section 1 shall apply to a case where a party is added or substituted
owing to an assignment or devolution of any interest during pendency
of proceeding.
S
22 CONTINUING BREACHES AND TORTS
In the case of a continuing
breach of contract or in the case of a continuing tort, a fresh
period of limitation begins to run at every moment of the time
during which the breach or the tort continues.
Object
Object of this section is to
prevent multiplicity of suits and to enable one action to be brought
for all loss suffered during the whole period the breach continued.
Continuous
cause of action
A
continuous cause of action is one arising from the repetition of acts
or omissions similar to those in respect of which an action is
brought.
Continuing
breach
A
continuing breach must be distinguished from successive breaches, as
for instance, failure to pay rent,interest or other sums payable
periodically. Here each successive breach constitutes an independent
cause of action which is liable to become time barred after
prescribed period.
S
23 SUITS FOR COMPENSATION FOR ACTS NOT ACTIONABLE WITHOUT SPECIAL
DAMAGE
In the case of a suit for
compensation for an act which does not give rise to a cause of action
unless some specific injury actually results therefrom, the period of
limitation shall be computed from the time when the injury results.
Specific
injury
This section applies only to
suits based on tort and does not apply to a case of negligence which
constitutes a breach of contract. The word 'injury' includes legal
injury.
S
24 COMPUTATION OF TIME MENTIONED IN INSTRUMENT
All instruments shall for the
purposes of this Act be deemed to be made with reference to Gregorian
calendar.
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