Before expiry of period of limitation, 'A' has acknowledged in writing the amount due as debt from 'B' and has promised to pay. What is the effect of such an acknowledgement?
Verified Answer
A. No effect on period of limitation
B. Fresh period of limitation will start from date of such an acknowledgement
C. Period of limitation will be extended for six months
D. Period of limitation will not be applicable
Explanation:
Section 18 of the Limitation Act, 1963, deals with the effect of acknowledgment in writing. It states that a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.