Statutes of Limitations

If within the prescribed, period or limitation, a written acknowledgement of a liability of any property or right is signed by the party against whom such property or right is claimed, or by some person through whom he derives such property or right is claimed, or by some person through whom he derives title or liability then a new period of limitation equal to a period originally prescribed by the Limitation Act will begin to run from the date of the acknowledgement.

Such acknowledgement does not create a new right, but merely extends the limitation. Acknowledgement made after the expiration of the period of limitation does not extend time, but, if the acknowledgement amounts to a promise to pay a debt which is time-barred, a fresh period starts from the date. Similarly, if an acknowledgement is made during holidays but after the period of limitation has expired, time would not be saved. Every acknowledgement made within the period of limitation would have the effect of starting the new period. Only such an acknowledgement as is unconditional saves the period of limitation. It is not necessary that the exact debt due be acknowledged nor mustt the acknowledgement be to the person entitled to the right.

Where acknowledgement of liability is made in favour of only the obligccs having equal shares, the other obligees would not be entitled to the benefit of the acknowledgement.