Recovery Suit -- Acknowledgment of Debt -- Made After Expiry of Limitation Period -- Suit held time-barred, application under Order 7 Rule 11 wrongly dismissed
(i) Limitation Act, 1963, S.18 -- Acknowledgment of Debt -- Requirement of Subsisting Limitation Period -- An acknowledgment of debt must be made within the subsisting period of limitation to extend the period of limitation. (ii) Civil Procedure Code, 1908, O.7 R.11, Limitation Act, 1963, S.18, Art.21 -- Rejection of Plaint -- Recovery Suit Barred by Limitation -- Where a loan is advanced on a given date and the three-year limitation period prescribed under Article 21 of the Limitation Act expires prior to an alleged acknowledgment of debt, such acknowledgment, being made after expiry of limitation, does not extend the period. A recovery suit instituted beyond the limitation period so computed is time-barred, and an order dismissing an application under Order 7 Rule 11 CPC in such circumstances is liable to be set aside.
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