When does the Limitation Act bar the remedy only and when does it bar the remedy and extinguish the right also?
Let us suppose he has advanced six items of money on six different dates each succeeding item being separated from the previous one by a period of six months. Four years after the first advance was made the period of three years fixed for the filing of suit for the recovery of the first item of advance has expired and the remedy of A for filing a suit is barred by limitation.
Hers although the remedy is barred, the right of A to recover the amount of the first advance is not extinguished but still survives although his right to file a suit for recovery thereof is barred by limitation.
Therefore if B, the debtor, pays the amount of the first advance after it has become barred or if he pays an amount without specifying towards which of the six advances it might be credited and the creditor applies it in the payment of the first item of advance, the creditor will be fully justified in law in doing so and the payment would not be allowed to be recalled on the ground of failure of consideration. A barred debt is a good consideration for a written promise to pay it.