The Limitation Act, 1963 provides for a few acts that give rise to a fresh period of limitation. These acts are:
- Acknowledgement of debt
- Part payment of debt
- Payment of interest on debt
- Execution of bond or other security
- Institution of suit or appeal
- Attachment or seizure of property
- Compromise of claim
- Order of court extending the limitation period
Acknowledgement of debt
An acknowledgement of debt is a written statement by the debtor admitting that he owes the debt. The acknowledgement of debt can be made by the debtor himself or by his authorized agent.
The acknowledgement of debt gives rise to a fresh period of limitation of 3 years from the date of the acknowledgement.
Part payment of debt
A part payment of debt is a payment made by the debtor towards the amount of debt. The part payment of debt gives rise to a fresh period of limitation of 3 years from the date of the part payment.
Payment of interest on debt
The payment of interest on debt does not give rise to a fresh period of limitation. However, if the interest is paid after the expiry of the limitation period for filing a suit for the recovery of the debt, the payment of interest can be used as evidence to show that the debt is still subsisting.
Execution of bond or other security
The execution of a bond or other security gives rise to a fresh period of limitation of 3 years from the date of the execution of the bond or security.
Institution of suit or appeal
The institution of a suit or appeal gives rise to a fresh period of limitation for filing a suit or appeal in respect of the same cause of action.
Attachment or seizure of property
The attachment or seizure of property gives rise to a fresh period of limitation of 3 years from the date of the attachment or seizure.
Compromise of claim
A compromise of claim is an agreement between the parties to a dispute whereby they agree to settle the dispute. The compromise of claim gives rise to a fresh period of limitation of 3 years from the date of the compromise.
Order of court extending the limitation period
The court can order the extension of the limitation period in certain cases. For example, the court can order the extension of the limitation period if the claimant is unable to file the suit due to reasons beyond his control.
Here are some MCQs on Acts Giving Rise to Fresh Period of Limitation:
- Which of the following acts gives rise to a fresh period of limitation?
- Acknowledgement of debt
- Part payment of debt
- Payment of interest on debt
- All of the above
- The correct answer is all of the above. The acknowledgement of debt, part payment of debt, and payment of interest on debt all give rise to a fresh period of limitation of 3 years.
- The limitation period for filing a suit for the recovery of a debt is 3 years. The debtor acknowledges the debt on 1st January 2023. Can the claimant file a suit for the recovery of the debt on 31st March 2026?
- Yes
- No
- The answer cannot be determined without more information
- The correct answer is yes. The claimant can file a suit for the recovery of the debt on 31st March 2026. The acknowledgement of debt gives rise to a fresh period of limitation of 3 years from the date of the acknowledgement. In this case, the acknowledgement of debt was made on 1st January 2023 and the suit can be filed within 3 years of the acknowledgement of debt.