Oral Acknowledge
Soma
(Querist) 23 December 2009
This query is : Resolved
WHETHER ORAL ACKNOWLEDGE OF DEBT RESTART LIMITATION PERIOD IN INDIA?
IF YES UNDER WHAT SECTION OR JUDGMENT?
Adv Archana Deshmukh
(Expert) 23 December 2009
No. In view of S.18 of the Limitation Act, to restart the limitation period, the acknowledgement of debt should be in writing and signed by the person. So oral acknowledgement won't start the limitation period afresh. And yes, the acknowledgement of the liability should be taken while the debt is still within the limitation period.
J.D.Sharma
(Expert) 23 December 2009
Promise to pay a time barred loan should be in writing, as per Limitation Act sec -18
Section 25 of contract act also deals with the acknowledgement of time barred debt which says:-
Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law -
The difference between the two is while sec- 18 can be invoked if the acknowledgement to pay is before the expiry of limitation period, after which limitation runs afresh from the day of acknowledgement. While under contract law even if it is acknowledgement is even after the expiry of limitation period and the same is in writing it can be invoked.
However in both the situation it must be in writing.
Raj Kumar Makkad
(Expert) 23 December 2009
In India only acknowledgment is legal.
joyce
(Expert) 30 December 2009
oral agreement does not give cause of action
