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Saturday, October 9, 2010

PROMISSORY NOTES -PROBLEMS- 5

LIMITATION PROBLEMS :- ARTICLE 35 - FOR RECOVERY OF PRONOTE AMOUNT IS 3 YEARS, UNLESS ANY PART PAYMENT WAS MADE AND ENDORSED ON THE REVERSE OF THE PRONOTE OR GAVE AN UNDERTAKING IN A SEPARATE SLIP WITH IN 3 YEARS, UNDER SEC.18 OF INDIAN LIMITATION ACT. OR EXECUTED FRESH PRONOTE OR AN UNDERTAKING UNCONDITIONALLY PROMISED TO REPAY THE TIME BARRED DEBT AS PER SEC. 25[3] OF INDIAN CONTRACT, THE LIMITATION WILL NOT BE EXTENDED. EXCEPT WHEN THE LAST DAY IS HAPPEN TO BE PUBLIC HOLIDAY, A SUIT CAN BE FILED ON THE NEXT DAY. ON THE LAST DAY WITHIN 24 HOURS, THE SUIT CAN BE PRESENTED FOR RECOVER Y.

18. Effect of acknowledgment in writing - (1) Where before the expiration of the prescribed period for a suit or application in respect or 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 derived 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 thee acknowledgement 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 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 night;

(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.

NOTES - It is not necessary that an acknowledgment within Section 18 must contain a promise pay or should amount to a promise to pay. (Subbarsadya v.Narashimha, AIR 1936 Mad.939)

The above section corresponds to S.19 of the old Act and makes slight changes.

35.

On a bill of exchange or promissory note payable on demand and not accompanied by any writing restraining or postponing the right to sue.

Three years

The date of the bill or note.

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