Text of the Limitation Act 1963 Section 18: Effect of Acknowledgment in Writing
(1) Where, before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he derives his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.
(2) Where the writing containing the acknowledgment is undated, oral evidence may be given of the time when it was signed; but subject to the provisions of the Indian Evidence Act, 1872 (1 of 1872), oral evidence of its contents shall not be received.
Explanation.—For the purposes of this section,—
(a) an acknowledgment may be sufficient though it omits to specify the exact nature of the property or right, or avers that the time for payment, delivery, performance or enjoyment has not yet come or is accompanied by a refusal to pay, deliver, perform or permit to enjoy, or is coupled with a claim to set off, or is addressed to a person other than a person entitled to the property or right;
(b) the word “signed” means signed either personally or by an agent duly authorised in this behalf; and
(c) an application for the execution of a decree or order shall not be deemed to be an application in respect of any property or right.”
Explanation Limitation Act 1963 Section 18
Section 18 of the Limitation Act, 1963 provides that a written, signed acknowledgment of liability for a property or right, made before the limitation period expires, resets the limitation clock. Subsection
(1) states that this acknowledgment—by the liable party or someone through whom they derive title/liability (e.g., an heir)—starts a fresh limitation period from the signing date, as per the Act’s Schedule.
Subsection (2) allows oral evidence to prove the signing date if the document is undated, but not its contents, subject to the Indian Evidence Act, 1872.
The Explanation clarifies:
(a) the acknowledgment need not detail the property/right, can delay payment/performance, refuse it, include a set-off, or be addressed to someone else;
(b) “signed” includes an authorized agent’s signature; and
(c) execution applications don’t qualify as acknowledgments of property/rights. This section extends the time to sue by recognizing admissions of liability, balancing flexibility and legal certainty.
Key Points Limitation Act 1963 Section 18
- Fresh limitation period starts from the date of a signed, written acknowledgment.
- Must occur before the original limitation period expires.
- Applies to liability acknowledged by the party or their title/liability source (e.g., agent, heir).
- Undated acknowledgment allows oral evidence for signing date, not contents.
- Acknowledgment can be vague, conditional, or refusory; “signed” includes agents; execution applications excluded.
Examples Limitation Act 1963 Section 18
- Debt due 2020 (3-year limit ends 2023), acknowledged in writing 2022—new limit starts 2022, ends 2025.
- Property claim (12-year limit ends 2030), signed acknowledgment 2025—new limit starts 2025, ends 2037.
- Undated letter admits debt in 2023; oral proof shows signing on April 1—limit restarts April 1, 2023, ends 2026.
- Tenant refuses rent in writing 2024 but admits liability—3-year limit restarts 2024, ends 2027.
- Agent signs for debtor in 2023—new 3-year limit starts 2023, ends 2026.
Case Laws Limitation Act 1963 Section 18
Shapoor Freedom Mazda v. Durga Prosad Chamaria (1961): Supreme Court held acknowledgment need not specify details, just admit liability (AIR 1961 SC 1236).
Lakshmiratan Cotton Mills v. Aluminium Corporation (1971): Valid acknowledgment resets limitation, even with refusal to pay (AIR 1971 SC 1482).