An acknowledgement is an admission of debt, made in writing and signed by a person regarding his liability, made to the creditor or to some other person on his behalf. The acknowledgement is used for supplying evidence of debt or to extend the period of limitation. There is no specific form for acknowledgement and it may be in any form, so far it expresses the acknowledgement of liability of a debt. The words used in the acknowledgement should indicate the existence of relationship of debtor and creditor and it should be clear that the statement has been made with the intention to admit such relationship. The intention to admit relationship either should be expressly in words or it may be inferred from the words used.
Essential requirements of an acknowledgement
The essential requirements of an acknowledgement are as under:
(1) Acknowledgement should be relating to subsisting liability-The acknowledgement should be relating to subsisting liability. It does not create a new right. The words used in acknowledgement should clearly indicate the relationship of creditor and debtor and the intention to admit such relationship. The intention to admit relationship should either be in express words or can be inferred by implication.
(2)Acknowledgement must be made before the limitation period-The acknowledgement must be made before the limitation period as acknowledgement of time barred debt cannot save limitation. However, a person may execute a fresh bond to pay the time barred debt. An acknowledgement does not imply that the debt was not time barred. The plaintiff has to prove that the acknowledgement was made before the expiry of limitation period.
(3) An acknowledgement should be made by the person liable to pay or an agent duly authorised in this behalf-An acknowledgement should be made by the person against whom such right is claimed or by an agent duly authorised in this behalf. Acknowledgement can be made on behalf of a person under disability, by his lawful guardian, committee or manager or an agent duly authorised by such guardian, committee or manager to sign the acknowledgement. A partner can acknowledge debt on behalf of the firm and an acknowledgement given by him will be good against other partners of the firm. A karta of the Hindu undivided family can acknowledge on behalf of the family and an acknowledgement by the duly authorised agent of the manager of the family, shall be good acknowledgement on behalf of the whole family.
(4) Acknowledgement of liability must be in writing, signed by the party against whom such right is claimed or by his duly authorised agent in this behalf-The acknowledgement of liability must be in writing signed personally by the party against whom such right is claimed or by his duly authorised agent in this behalf.
To constitute acknowledgement of liability, there must be acknowledgement of liability made in writing signed by the party and that too must be before the expiry of the prescribed period and if there is an acknowledgement of liability signed by the party against whom such property or right is claimed, a fresh period of limitation starts from the time of acknowledgement of liability.
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