1.
Introduction:
The effect of part payment on the limitation period is governed by Section 19 of the Limitation Act,
1963. This section allows a fresh limitation period to begin if the debtor makes a partial payment
towards the debt within the original limitation period. The rationale behind this provision is that part
payment serves as an acknowledgment of the debt, demonstrating the debtor's intent to fulfill the
obligation. Here is a detailed explanation:
2. Effect of part payment (Section 19)
Section 19 provides that if a payment is made toward a debt or for interest on a legacy before the end of
the prescribed limitation period, it leads to a fresh period of limitation starting from the date of that
payment.
This payment can be made by the debtor or the person liable for the legacy, or an agent authorized on
their behalf.
3. Requirements for Extending the Limitation Period Section 19
To invoke Section 19 and reset the limitation period, certain conditions must be met for the part
payment to be valid:
a. Payment of Principal or Interest
The payment can be toward either the principal amount or the accrued interest on the debt. Even a
nominal amount paid as interest will be sufficient to reset the limitation period.
b. Payment Made Before Expiry of the Original Limitation Period
The part payment must occur before the expiration of the original limitation period. Payments made
after the limitation period has expired will not revive or extend it.
c. Entry in the Debtor’s Own Handwriting or Signed
To serve as valid evidence, the part payment should be acknowledged in writing, either signed by the
debtor or made in the debtor's handwriting. This signature requirement ensures that the debtor’s
acknowledgment of the debt is legally documented.
4. Explanation of Key Terms in Section 19
The section includes explanations to clarify its scope:
o Explanation (a): If mortgaged land is in the possession of the mortgagee, any rent or
produce collected from that land by the mortgagee is considered a payment towards
the debt. This provision is especially relevant in cases of mortgage, where the
mortgagee collects rent or other proceeds from the mortgaged property.
o Explanation (b): The term “debt” under this section does not include money payable
under a court decree or order. This means that Section 19 does not apply to amounts
owed under judicial orders, focusing instead on voluntary debts and legacies.
5. Effect of Valid Part Payment on Limitation
When a valid part payment is made, a new limitation period starts from the date of that
payment.
This reset is crucial as it extends the time available for creditors or claimants to recover the debt
or legacy.
For example, if the limitation period for a debt is three years and part payment is made in the
second year, a fresh three-year period begins from the date of that payment.
6. Conclusion
The effect of part payment under Section 19 of the Limitation Act, 1963 is significant for both creditors
and debtors. By allowing a fresh limitation period after part payment, it gives creditors more time to
seek repayment if the debtor acknowledges the debt by making partial payments. This provision reflects
the law’s emphasis on fair dealings and encourages debt resolution through partial payments rather
than litigation.
