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Circumstances under which payment on account of debt or of interest on legacy would extend the period of limitation under the Limitation Act, 1963

January 11, 2019 0 Comment

Unless, therefore, there is acknow­ledgment in the required form the payment by itself is of no avail. The principle underlying the section is that such payment implies an admission of a right and acknowledgement of the corresponding liability.

The provision which requires an acknowledgement of payment to be made in writing or to be signed by the person making the payment is applicable’ also to the case of rent or produce of land received by the mortgage in possession of the land.

This change which has been introduced by the New Act of 1963 provides a protection to the debtor as the creditor will not now be free to extend limitation by his own act; he will have to seek the aid of the debtor for acknowledgment of the payment thereby giving the latter an opportunity to understand the accounts also.

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The term ‘debt’ in section 19 does not include money payable under a decree or order of a court.

Section 19 does not say as to whom payment should be made. But naturally it must be made to the person entitled, i.e., the credited or to his duly authorised agent.

Section 19 does not specify any particular mode or form of payment. Payment under this section may be made not only in money, but in any other medium that the creditor may choose to accept.

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