COMPUTATION OF PERIOD OF LIMITATIONCentral

Section 19 of The Limitation Act, 1963

Effect of payment on account of debt or of interest on legacy.

Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly authorised in this behalf, a fresh period of limitation shall be computed from the time when the payment was made: Provided that, save in the case of payment of interest made before the 1st day of January, 1928, an acknowledgment of the payment appears in the handwriting of, or in a writing signed by, the person making the payment. Explanation.—For the purposes of this section,—

(a)where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment;
(b)"debt" does not include money payable under a decree or order of a court.

Summary

Section 19 resets the limitation clock when a debtor makes a partial payment of a debt or pays interest on a legacy, which is money left in a will, before the deadline expires.
A fresh, full period of limitation starts counting from the exact date the payment was made.
Except for interest payments made before January 1, 1928, the payment must be documented in writing, either in the debtor's own handwriting or in a signed writing.
If a lender holds mortgaged land, any rent or crops they receive from that land counts as a valid payment under this rule.
For the purposes of this rule, a debt does not include money that is payable under a court's decree or order.

Practical examples

1Amit owes Binod fifty thousand rupees on a loan. Before the three year limitation period ends, Amit pays Binod five thousand rupees. To ensure the payment is valid under the Limitation Act, Amit writes out a receipt in his own handwriting stating he paid five thousand rupees. Binod's three year deadline to sue for the remaining amount starts fresh from that payment date.

2Suresh is entitled to a financial legacy under his late uncle's estate, managed by the executor, David. Before the limitation period to sue for the legacy ends, David pays Suresh a portion of the interest due and signs a short note confirming this payment. This signed note resets the limitation clock for Suresh to claim the full legacy under the 1963 Act.

FAQ

1. What is the effect of part payment of a debt under Section 19 of the Limitation Act, 1963?

Under Section 19 of the Limitation Act, 1963, making a payment on a debt or paying interest on a legacy before the deadline expires resets the clock, creating a fresh limitation period from the date of payment.

2. Does a payment towards a court decree reset limitation under Section 19 of the Limitation Act, 1963?

No, Section 19 of the Limitation Act, 1963 explicitly states that a debt under this section does not include money payable under a court decree or order, so such payments do not reset the clock.

3. Is a verbal payment sufficient to reset the clock under Section 19 of the Limitation Act, 1963?

No, under Section 19 of the Limitation Act, 1963, there must be a written acknowledgment of the payment, which must be in the handwriting of the person making the payment or in a writing signed by them.

Test yourself

1.Under Section 19 of the Limitation Act, 1963, what is required for a payment on a debt to reset the limitation period?

2.Under Section 19 of the 1963 Limitation Act, if a mortgagee has possession of mortgaged land, what counts as a payment that resets the limitation period?

3.Under Section 19 of the Indian Limitation Act, which of the following is specifically excluded from the definition of a "debt"?

4.Under Section 19 of the Limitation Act, when does the fresh period of limitation begin to run after a valid part payment?

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