In Law, an Acknowledgement in writing within expiration of prescribed period will mark a new commencement period for limitation to base a claim & the same will not create a new contract- Vivek Jha vs Daimler Financial Services India Private Ltd. & Anr. – NCLAT New Delhi
In Law, an ‘Acknowledgement’ in writing within expiration of prescribed period will mark a new commencement period for limitation to base a claim and the same will not create a new contract. In fact, it only extends the limitation period. Suffice it for this Tribunal to make a pertinent mention that if a suit is filed within three years from the last acknowledgement the same is not barred by limitation as per decision Union of India Vs. M.C. Pandey AIR 2009 NOC Page 494 (UTR). Further, an ‘Acknowledgement’ must be made before the expiration of the limitation period as per Section 18 of the Limitation Act, 1963. An ‘Acknowledgement’ of Liability not only saves limitation period but also confers on an individual a ‘cause of action’ to him, to lay his claim.
