Section 19 deals with the effect of part payment of a debt or payment of interest on the computation of the limitation period.
Key Points:
1. Part Payment of Debt:
- If part payment of a principal debt is made before the expiration of the prescribed limitation period, a fresh limitation period begins from the date of payment.
- The payment must be acknowledged in writing, signed by the party making the payment.
2. Payment of Interest:
- Similarly, payment of interest on a legacy or debt, before the expiry of the limitation period, also extends the limitation period.
- The interest payment must be acknowledged in writing.
3. Acknowledgment of Payment:
- The acknowledgment of part payment or interest must be made by the debtor or by someone authorized to act on their behalf.
- This acknowledgment should be documented to restart the limitation period.
4. Purpose:
- Section 19 encourages debtors to make part payments or pay interest, knowing that these actions will extend the limitation period.
- It provides creditors with additional time to enforce their rights after such payments are made.
5. Illustration:
- If A owes B a debt and the limitation period is set to expire on January 1, 2023, a part payment made on January 1, 2022, restarts the limitation period from January 1, 2022.
By detailing these provisions, Section 19 of the Limitation Act, 1963, ensures that the limitation period is extended by part payments or interest payments, offering flexibility to both debtors and creditors while maintaining fairness in financial and legal transactions.
