Multiple choice

Directions: Go through the problem and encircle the most appropriate answer.

Limitation bars the remedy, not the right.

After the expiry of the period of limitation of three years, debtor Rohan makes a part-payment of debt to creditor Sohan. Sohan then files a suit against Rohan for recovery of the debt after two years from the date of party payment. Decide.

  1. The part payment extends the period of limitation

  2. The suit is time barred as part payment is made after the expiry of period of limitation

  3. Fresh period of limitation beings from the date of part payment

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Limitation Act, a part payment made after the limitation period has expired starts a fresh period of limitation from the date of payment. The rationale is that part payment amounts to an acknowledgment of the debt. Sohan's suit filed within 3 years (specifically, 2 years) from the part payment date is timely and not barred.

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