Section 19 of the Limitation Act deals with the effect of payment on account of debt or interest on legacy. It enacts that (1) if payment is made on account of debt or interest on legacy, (2) before the expiration of the prescribed period (3) 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 date of payment.
It further provides that except in the case of payment of interest made before 1st January, 1928, the acknowledgement of payment should appear in the handwriting of, or in a writing signed by the person making the payment.
It is the payment which really extends the period of limitation under section 19: but the payment has got to be provided in a particular way and for reason of policy the Legislature insists on a written (by the prayer himself) of signed acknowledgment as the only proof of payment and excludes oral testimony.
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ADVERTISEMENTS:
Unless, therefore, there is acknowledgment in the required form the payment by itself is of no avail. The principle underlying the section is that such payment implies an admission of a right and acknowledgement of the corresponding liability.
The provision which requires an acknowledgement of payment to be made in writing or to be signed by the person making the payment is applicable’ also to the case of rent or produce of land received by the mortgage in possession of the land.
This change which has been introduced by the New Act of 1963 provides a protection to the debtor as the creditor will not now be free to extend limitation by his own act; he will have to seek the aid of the debtor for acknowledgment of the payment thereby giving the latter an opportunity to understand the accounts also.
ADVERTISEMENTS:
The term ‘debt’ in section 19 does not include money payable under a decree or order of a court.
Section 19 does not say as to whom payment should be made. But naturally it must be made to the person entitled, i.e., the credited or to his duly authorised agent.
Section 19 does not specify any particular mode or form of payment. Payment under this section may be made not only in money, but in any other medium that the creditor may choose to accept.