1. Core Legal Answer & Context: A "written acknowledgment" under the Limitation Act, 1963, refers to an admission of liability in respect of a property or right, made in writing and signed by the party against whom such property or right is claimed, or by any person through whom he derives title or liability. For an acknowledgment to be valid and effective, it must be made before the expiration of the prescribed period for a suit or application. The acknowledgment need not specify the exact nature of the property or right, nor the exact amount, but it must relate to the property or right in question and imply an admission of a subsisting liability.

Effects of Written Acknowledgment (Section 18 Limitation Act): The primary effect of a valid written acknowledgment is that it gives rise to a fresh period of limitation. This means:

• Fresh Period of Limitation: A new period of limitation is computed from the time when the acknowledgment was signed. Essentially, the clock for the limitation period resets from the date of the acknowledgment.
• Extension of Time: It effectively extends the time within which a suit or application can be filed, provided the acknowledgment is made before the original limitation period expires. If the original period has already expired, an acknowledgment cannot revive a time-barred claim.
• No New Cause of Action: It does not create a new cause of action but merely extends the existing one, confirming the subsisting liability.
• Conditional Acknowledgment: If the acknowledgment is conditional, the condition must be fulfilled for it to be effective in extending the limitation period.
• Oral Evidence: While the acknowledgment itself must be in writing, oral evidence of the date on which it was signed is admissible, but not of its contents.

Example: If a debt is due on January 1, 2020, with a limitation period of three years, and the debtor signs a written acknowledgment of the debt on January 1, 2022, a fresh limitation period of three years will start from January 1, 2022.

2. Relevant Statutes and Sections: Section 18 of the Limitation Act, 1963.

3. Important Landmark Cases:

• Sant Lal Mahton v. Kamala Prasad: The Supreme Court clarified that the acknowledgment must be in writing and signed, and must relate to the liability in question. It need not be an express promise to pay but must be an admission of a subsisting jural relationship.
• J.C. Budhraja v. Chairman, Orissa Mining Corporation Ltd.: Emphasized that an acknowledgment must be made before the expiry of the limitation period and must be an admission of a subsisting liability, not merely a statement of fact.

4. Clear Conclusion: A written acknowledgment of liability, made before the expiry of the original limitation period, serves to initiate a fresh period of limitation, effectively extending the time available for legal action. This provision prevents injustice where a debtor admits their obligation but delays payment, ensuring that the creditor's right to sue is preserved and promoting good faith in commercial dealings.