Acknowledgment (Section 18 & 19)

Mains Question – Limitation Act

Q. 1. Under the Limitation Act:
(A) Which section of the Limitation Act lays down the doctrine of the “effect of acknowledgment”? What are the broad principles & requirements for invoking this doctrine?
(B) If a loanee makes part payment of the interest on the principle amount to the loaner two months before the expiry of limitation period for filling the suit, does this payment of part interest amount, start a fresh period of limitation? Elaborate. [JS 2001]

Q. 2. Advice ‘A’ in the following cases:
“B’ the debtor of ‘A’, promises to pay his debt in writing and signed by him on the last day of limitation period. [JS 2014)

Q. 3. A borrowed a sum of money from B. The last date for filing the suit fell on Sunday. On Monday, the next day A gives a written acknowledgement to B. Advise B whether he should file the suit immediately or he can do so after sometime. Give reasons. [HJS 1988]

Q. 4. (a) What is the effect of payment made before the expiry of the limitation.
(b) A owes a sum of Rs. 200/- to B on a pronote. Before the expiry of the period of limitation A pays a sum of Rs. 200/- to B towards that pronote. What is the effect of this payment on limitation? [HJS 1996]

Q. 5. What is effect of acknowledgement on the period of limitation. How this period of limitation is computed in such a case. [HJS 1999]

Q. 6. Describe what is an “acknowledgement” under the Limitation Act. What are the effects of “acknowledgement” on limitation? Discuss with illustrations. [HJS 2000]

Q. 7. When does the payment of interest or a part payment of principal amount by the debtor extend the period of Limitation. [HJS 2001].

Q. 8. What is the effect of acknowledgment as envisaged under the Limitation Act? .[HJS 2009]

Q. 9. Do the following amount to acknowledgement of a debt? .
(i) “it is not that I won’t pay you but that I cannot do so…” What I wrote was not that I saw no prospect at present of being able to repay the capital but that I saw no prospect of being able to repay the capital at present.
(ii) “ I owe the money, but I cannot tell when and how I will be able to pay”.
(iii) “I owe the debt, but I will not pay it, unless I am compelled by law.”
(iv) A sends a letter duly signed to his own son acknowledging liability for a debt due to B, a creditor. Can the creditor B rely on such acknowledgment for extension of time in his suit against A? [HJS 2009]

Q. 10. ‘A’ borrowed a sum of money from ‘B’. The last date for filing the suit fell on Sunday. On next day i.e. Monday ‘A’ gave a written acknowledgement to ‘B’. Should ‘B’ file the suit immediately on Monday or he can file it after some time? Advice. [HJS 2010]

Q. 11. What is the effect of ‘acknowledgement’ as envisaged under the Limitation Act? [HJS 2011]

Q. 12. Discuss the essential characteristics of an acknowledgement which gives rise to a fresh period of limitation for any suit in respect of a debt. [RJS 1974]

Q. 13. A owes Rs. 100 to B. A makes a payment of Rs. 20 before the period of limitation expires. An acknowledgement of the payment appears in writing signed by A after the said period has expired. Can B bring a suit for the recovery of the balance? [RJS 1976]

Q. 14. State the valid conditions of acknowledgement of debt under the Limitation Act. [RJS 1999, 2011]

Q. 15. Discuss giving an instance in the following:-
Limitation law is not the same thing as law of prescription. [DJS 1973]

Q. 16. On February 4, 1964, A executed a promissory note for Rs. 10,000/- in favour of B and simultaneously gave to B a cheque dated February 25, 1964 filled in his own hand and signed by him as drawer as conditional part payment of debt. The cheque was presented to be cashed by bank on March 2, 1964. Period of limitation for bringing suit is three years. B brought a suit on February 22, 1967 against A for recovery of balance debt. A pleaded that suit was barred by limitation. B relied upon section 19 of Limitation Act 1963 (Section reproduced). How will you decide the point of limitation? Give reasons and also the date from which limitation period will start. [DJS 1973]

Q. 17. Can an acknowledgement made under section 18 of Limitation Act after the expiry of the period of limitation, but during the vacation when courts were closed, save limitation? [DJS 1979]

Q. 18. A executed a promissory note in favour of B on 1.10.79. On 30.4.83. ‘A’ appeared as a witness before a court and admitted that the amount of the promissory note was due. The statement was not signed by him. On 3.5.83, ‘B’ filed a suit for recovery of the amount on basis of the promissory note and wanted to use the statement of ‘A’ made before the court. Decide if the said statement will extend the period of limitation. [DJS 1984]

Q. 19. A sum of Rs. 13,000/- was due from the defendant to the plaintiff (both trading firms) on account of credit transactions upto 17.10.76. A suit for its recovery was filed on 20.03.81. It is barred by time. The plaintiff pleaded in plaint and proved defendant’s letter dated 30.10.78. Ex. A/1, an acknowledgement, which if accepted will save the limitation. The defendant says that this letter was written on 30.10.76 and the year ‘1978’ mentioned, is only a typographical error. The plaintiff argued that even if there was such an error section 18(2) of the Limitation Act, 1963 is a bar in proving it; that managing partner of defendant, DWI, has admitted in cross examination that there was an acknowledgement of this debt in the Balance Sheet of the defendant made and signed on 07.07.78, that if there was any doubt in the date of the letter Ex. A/1 the benefit should be given to it. The documentary evidence produced by the parties suggested that letter Ex. A/1 must have been written in 1976. Is there force in the arguments of the plaintiff? Decide the issue of bar of limitation.
Note: Section 18(2) Limitation Act, 1963 permits proof of evidence regarding time of signing the acknowledgement in writing when it is undated. [DJS 1991]

Q. 20. Mohan advanced Rs. 1,00,000/- by way of loan to Raman. The payment was made on 1.1.2007. On the same day, Raman executed a document, whereby Raman undertook to pay the loan amount with simple interest at the rate of 10% p. a. on demand. On 10.10.2009, Mohan got sent a legal notice asking Raman to make the payment of due amount. In response, Raman asked his advocate to respond to the notice requesting Mohan to extend the time for making the payment for a period of two years as Raman was passing through financial crisis and had no money to make the payment. The advocate of Raman sent the reply to the notice accordingly. The reply was got drafted and dispatched on 1.1.2010 under the signatures of the advocate of Raman. Mohan filed a suit against Raman for recovery of loan amount along with accrued interest on 3.2.2012. Raman in his written statement raised the sole contention that the suit is barred by limitation. Decide while referring to various legal provisions involved. [DJS 2011]

Q. 21. Write short note on Acknowledgement of liability [DJS 2014]

Q. 22. Write short note on the following:
Effect of. acknowledgement/part payment on computation of limitation. [DJS 2015]

Q. 23. What is the effect of death, fraud, mistakes and acknowledgement in writing in counting the period of limitation? Explain. [MPJS 2012]

Q. 24. What is the effect of acknowledgement of liability and part payment of debt? [MPJS 2015]

Q. 25. Write short note on Acknowledgment of debt. [B&JSS 1986]

Similar Posts