Limitation & Acknowledgement of Debt

Section 6 of the Limitation Act 1953 (“LA 1953“) provides, amongst others, that actions founded on contract or tort shall not be brought after the expiration of six years from the date on which the cause of action accrued.[1]

In the case of an unpaid debt, the cause of action arising from it is time barred e.g. upon the expiry of 6 years from the date repayment was due and therefore cannot be acted upon.

One of the exceptions to Section 6(1) of the LA 1953 can be found in Section 26 of the LA 1953 wherein there is acknowledgement of the debt or part payment.

The following are some important judicial development in the area of limitation vis-a-vis acknowledgement of debt: