Limitation Act 1963 Section 19: Effect of Payment on Account of Debt or of Interest on Legacy
19. 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.
Explanation Limitation Act 1963 Section 19
Section 19 of the Limitation Act 1963 is straightforward: if someone pays part of a debt or interest on a legacy (like an inheritance) before the legal time limit runs out, it resets the clock for filing a lawsuit. Imagine you owe money, and the deadline to sue you is approaching—making a payment gives a new starting point for that deadline.
This payment must come from the person who owes or their authorized agent (like a lawyer). There’s a catch: the payment needs a written record—either in the payer’s handwriting or signed by them—unless it’s interest paid before January 1, 1928. Special rules apply too: if a lender holds mortgaged land and collects rent or produce, that counts as a payment. But this section doesn’t cover court-ordered payments, only regular debts or legacies. It’s a way to keep legal rights alive longer when payments happen.
Key Points Limitation Act 1963 Section 19
- Payment of debt or legacy interest before the limitation period ends starts a fresh limitation period.
- Must be made by the debtor or their authorized agent.
- Requires written acknowledgment (handwritten or signed) unless interest paid pre-1928.
- Mortgagee collecting rent/produce from mortgaged land counts as payment.
- Excludes court decree/order payments from “debt.”
Examples Limitation Act 1963 Section 19
- Debt due 2020 (3-year limit ends 2023), payment made 2022—new limit starts 2022, ends 2025.
- Interest on legacy paid 2024 (3-year limit ends 2026)—new limit starts 2024, ends 2027.
- Mortgagee collects rent 2023—3-year limit restarts 2023, ends 2026.
- Partial debt paid 2025, signed receipt—12-year limit (if property-related) starts 2025, ends 2037.
- No written record for 2024 payment—limit doesn’t reset unless pre-1928 interest.
Case Laws Limitation Act 1963 Section 19
Jiwanlal Achariya v. Rameshwarlal (1967): Supreme Court ruled part-payment with acknowledgment resets limitation for debts (AIR 1967 SC 1118).
Khardah Company Ltd. v. Raymon & Co. (1962): Payment by agent valid if authorized, restarts limitation (AIR 1962 SC 1810).