What is Acknowledgement under the Limitation Act, 1963?
Acknowledgement under Section 18 of the Limitation Act refers to a situation where a debtor or party admits their liability in writing before the limitation period expires. This written acknowledgement extends the limitation period, allowing the claimant additional time to enforce the legal right.
For example, if a person owes money and sends a written letter admitting the debt before the original limitation period ends, a fresh limitation period starts from the date of that letter.
Essentials of a Valid Acknowledgement
To be valid under the Act, the acknowledgement must meet the following conditions:
- In Writing: The acknowledgement must be recorded in writing. Oral acknowledgements are not recognized under Section 18.
- Signed by the Party: The person acknowledging the liability (or their authorised agent) must sign the document.
- Made Before Expiry: The acknowledgement must occur before the original limitation period ends.
- Clear Admission: There must be a clear admission of an existing liability. It need not include a promise to pay but must acknowledge the relationship or obligation.
- Voluntary Nature: The acknowledgement must not be forced or obtained under threat or coercion.
Effect of Acknowledgement on Limitation Period
Once a valid acknowledgement is made, a new limitation period begins from the date of the acknowledgement. This does not revive a time-barred claim but extends the limitation period for ongoing, enforceable rights.
Example:
If a loan was due on 1st January 2020 and the borrower makes a written acknowledgement on 30th December 2022 (just before the 3-year period ends), the limitation period will restart from 30th December 2022, giving the creditor another three years to sue.
Frequently Asked Questions
1. Does part payment count as acknowledgement?
Yes. Under Section 19 of the Limitation Act, part payment made towards a debt or interest before expiration of limitation also extends the limitation period. But this must be accompanied by a written and signed record of such payment.
2. Can a time-barred debt be revived by an acknowledgement?
No. Once a claim becomes time-barred, a later acknowledgement cannot revive it under Section 18. The acknowledgement must occur before the original limitation expires.
3. Is an unsigned email or WhatsApp message a valid acknowledgement?
Not unless the message includes a digital signature or is legally attributable to the sender under current digital laws. Indian courts have recognised digital communication, but proper authentication is essential.
Relevant Case Laws
Sampuran Singh v. Niranjan Kaur (1999)
The Supreme Court ruled that even if the acknowledgement is not addressed to the creditor, it can still be valid if it clearly admits the debt.
K.S. Venkataraman & Co. v. State of Madras (1966)
Acknowledgement must refer to a substantive liability, not just procedural obligations.
Jignesh Shah v. Union of India (2019)
The Court clarified that acknowledgement must be within the limitation period to be effective and that mere settlement discussions do not amount to acknowledgement unless specifically admitting the liability.
