Limitation Act 1963 / Sections 19 and 20
Sections 19 and 20 of the Limitation Act 1963: Effect of Payment and Acknowledgment or Payment by Another Person
Sections 19 and 20 form part of the rules for computation of limitation under the Limitation Act, 1963. Section 19 deals with a fresh period of limitation following a qualifying payment on account of a debt or interest on a legacy. Section 20 explains when an acknowledgment or payment made by another person may operate for the purposes of Sections 18 and 19.
Section 19 - Effect of payment on account of debt or of interest on legacy
Section 19 addresses the effect of certain payments made before expiry of the prescribed limitation period. Its purpose is to provide for computation of a fresh period of limitation where the statutory conditions are satisfied.
When does Section 19 apply?
Where payment on account of a debt or payment of interest on a legacy is made before expiry of the prescribed period by the person liable to pay the debt or legacy, or by an agent duly authorised in that behalf, a fresh period of limitation is computed from the time when the payment was made, subject to the statutory requirement concerning acknowledgment of that payment.
The timing of the payment is therefore important. A payment relied upon under Section 19 must be made before the prescribed limitation period expires.
Written acknowledgment of the payment
Subject to the historical exception stated in the proviso concerning payment of interest made before 1 January 1928, an acknowledgment of the payment must appear in the handwriting of, or in a writing signed by, the person making the payment. The statutory requirements should be established from the relevant writing and surrounding facts.
Explanation to Section 19
The Explanation to Section 19 clarifies two matters:
- Where mortgaged land is in the possession of the mortgagee, receipt of the rent or produce of that land is deemed to be a payment for the purposes of Section 19.
- For this section, the expression "debt" does not include money payable under a decree or order of a court.
Section 20 - Effect of acknowledgment or payment by another person
Section 20 supplements Sections 18 and 19 by identifying circumstances in which an acknowledgment or payment made by a person other than the person directly concerned can have legal effect for limitation purposes.
Section 20(1): Person under disability
For a person under disability, the expression "agent duly authorised in this behalf" in Sections 18 and 19 includes the person's lawful guardian, committee or manager, or an agent duly authorised by that guardian, committee or manager to sign the acknowledgment or make the payment.
Section 20(2): Joint contractors, partners, executors and mortgagees
An acknowledgment or payment by one person does not, merely for that reason, make another joint contractor, partner, executor or mortgagee chargeable under Sections 18 and 19. The provision prevents automatic extension of liability merely because another person in one of these relationships has signed an acknowledgment or made a payment.
Section 20(3): Limited owners and Hindu undivided families
Section 20 also contains special rules concerning certain liabilities connected with a limited owner governed by Hindu law and liabilities incurred by or on behalf of a Hindu undivided family.
An acknowledgment signed or payment made in respect of a liability by a limited owner of property governed by Hindu law, or by that owner's duly authorised agent, may operate against a reversioner succeeding to that liability as provided by the section. Where a liability has been incurred by or on behalf of a Hindu undivided family as such, an acknowledgment or payment made by the manager of the family for the time being, or by the manager's duly authorised agent, is treated in accordance with the statutory rule as having been made on behalf of the whole family.
Difference between Sections 18, 19 and 20
Section 18 concerns a qualifying acknowledgment of liability in writing and signed before expiry of the prescribed period. Section 19 concerns qualifying payment on account of a debt or interest on a legacy before expiry of the prescribed period. Section 20 explains the effect, for Sections 18 and 19, of acknowledgments or payments made by specified other persons.
Practical application of Sections 19 and 20
Whether a fresh period of limitation arises depends on the statutory conditions and the evidence in the particular case. Relevant questions commonly include the applicable Schedule Article, the original date from which limitation began, whether the payment occurred before expiry of that period, whether the required written acknowledgment of payment exists, who made or signed it, and whether Section 20 affects the legal consequence of that act.
This article is a general explanation of the Limitation Act, 1963. The applicable Schedule Article, statutory amendments, binding judicial decisions and the facts and documents of the particular matter should be examined before calculating limitation.