Section 18 of LA : Section 18: Effect Of Acknowledgment In Writing

Explanation using Example

Imagine that Ravi lent Rs. 100,000 to Arjun on January 1, 2010, with an agreement that Arjun would repay the loan by December 31, 2012. The limitation period for Ravi to file a suit to recover the money is three years from the due date, which means he has until December 31, 2015, to file a lawsuit. However, Ravi does not take any legal action within this period.

On November 15, 2015, just before the limitation period expires, Arjun sends a written letter to Ravi acknowledging that he still owes Ravi Rs. 100,000. The letter is signed by Arjun. This acknowledgment of debt restarts the limitation period from the date of the letter. Now, Ravi has a new deadline, which is three years from November 15, 2015, to file a lawsuit to recover his money.

If Arjun's acknowledgment letter had no date, Ravi could present oral evidence to prove when Arjun signed the letter. However, Ravi cannot use oral evidence to prove the contents of the letter because it must be in writing as per the Indian Evidence Act, 1872.