Section 18 of the Limitation Act, 1963: Acknowledgment of Liability in Writing and Fresh Period of Limitation

Section 18 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Section 18 lets a creditor or claimant get a fresh period of limitation when the person against whom the claim lies acknowledges the liability in writing, signed, before the prescribed period expires. The fresh period is counted from the time the acknowledgment was signed.

This article follows the consolidated text of the Act consulted (latest amendment shown: Act 46 of 1999). Later amendments should be checked before you rely on it.

If, before the prescribed period expires, an acknowledgment of liability in respect of the property or right is made in writing, signed by the party against whom the claim lies (or by a person through whom he derives his title or liability), a fresh period of limitation is computed from the time the acknowledgment was signed. An acknowledgment that comes after the period has expired is not within the words of the section.

Section 18(1): the rule

Section 18(1) reads: "Where, before the expiration of the prescribed period for a suit or application in respect of 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 derives his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed."

The conditions can be read off the text.

Each condition has to be met. A spoken acknowledgment is not in writing. An unsigned note is not signed. An acknowledgment made after the period has run out is outside the words "before the expiration of the prescribed period".

The Act's words are "a fresh period of limitation shall be computed from the time when the acknowledgment was so signed". The text does not spell out the length of the fresh period beyond that; read it with the Article of the Schedule that governs the suit or application, counted from the signing date.

An illustration with invented names: Sundaram Steels supplies goods to Ravi Fabrics, and the Schedule period for the price is three years from a date. In the third year, Ravi Fabrics signs a letter stating that it owes the price of the goods and will pay. The letter is an acknowledgment of liability, made in writing, signed, before the period expired. A fresh period of limitation is computed from the date of signing, and the Schedule's three years are read from that date. If the letter is dated 15 May 2026, the new period is counted from 15 May 2026, with section 12(1) excluding the first day.

If you hold a signed letter or statement from a debtor, a recovery notice prepared with the dates in view can follow it. A notice does not itself give a fresh period under this section; the section looks to the debtor's signed acknowledgment.

Section 18(2): undated writing

Section 18(2) reads: "Where the writing containing the acknowledgment 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."

Two rules:

• If the writing is undated, oral evidence may be given of the time when it was signed.
• Oral evidence of the contents of the writing shall not be received, subject to the Indian Evidence Act, 1872.

So the date can be proved by other evidence; the contents must come from the writing itself. The Act does not say what kind of oral evidence is enough, and this article does not add any.

The Explanation: what the section covers

The Explanation says that for the purposes of the section there are three clarifications.

Clause (a): what an acknowledgment may include

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 a 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 right.

The word is "may": these features do not make an acknowledgment automatically sufficient, but they do not rule it out. An acknowledgment that says "the money is not yet due, but I admit it is owed" or one that admits the debt but claims a set off may still be sufficient on the words of the Explanation. Whether a given letter is sufficient depends on its words.

Clause (b): "signed"

The word "signed" means signed either personally or by an agent duly authorised in this behalf. Section 20(1) adds that, for a person under disability, the agent includes his lawful guardian, committee or manager or an agent duly authorised by such guardian, committee or manager; see section 20.

Clause (c): execution applications

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. So an acknowledgment does not give a fresh period for an application of that kind, on the words of the Explanation.

What section 18 does not do

• It does not apply to an acknowledgment that comes after the period has expired.
• It does not make a payment an acknowledgment; payment on account of a debt is dealt with in section 19.
• It does not say that an acknowledgment by one of several joint contractors, partners, executors or mortgagees binds the others; section 20(2) says nothing in sections 18 and 19 makes the others chargeable by reason only of such an acknowledgment.
• It does not set the Schedule period; look at the Article for your suit.

Special laws

Section 29(2) lets a special or local law fix its own period and applies sections 4 to 24 to it only so far as that law does not expressly exclude them. Never apply a Schedule period to a tax, insolvency, company, arbitration, consumer, MSME or cheque dishonour proceeding; check the special law. Our post on the law of limitation under the IBC and acknowledgment of debt deals with that setting separately.

For the creditor's perspective on bad debts, see what is bad debt.

Need help with an overdue dues claim?

If a debtor has acknowledged the amount in writing, the date and signature on that document are central. We can help you check the document, the dates and the next step through a recovery notice before limitation runs out.

Key takeaways

• A fresh period of limitation is computed from the time a signed written acknowledgment of liability was made.
• The acknowledgment must be made before the prescribed period expires.
• It must be in writing and signed by the party against whom the claim lies, or a person through whom he derives title or liability.
• If undated, oral evidence of the time of signing may be given, but not of the contents.
• An acknowledgment may be sufficient though it says payment is not yet due, refuses payment, claims set off or is addressed to another person.
• "Signed" includes signing by a duly authorised agent.
• A special or local law may fix a different period (section 29(2)).

Read next

• Section 19: part payment of debt or interest and fresh period of limitation
• Section 20: acknowledgment or payment by guardian, agent, partner or family manager
• Section 17: effect of fraud or mistake on limitation
• The law of limitation under the IBC and acknowledgment of debt

Disclaimer: Based on a consolidated text of the Limitation Act, 1963 and its Schedule whose latest amendment shown is Act 46 of 1999, as consulted on 2 October 2026. A special or local law may fix a different period; later amendments and the current procedural law should be checked. This article is general information, not legal advice; check the official text before acting.