IMPORTANCE OF ACKNOWLEDGEMENT UNDER INDIAN LAW
IMPORTANCE OF ACKNOWLEDGEMENT UNDER INDIAN LAW GENERAL MEANING OF ACKNOWLEDGEMENT Acknowledgement' generally refers to the acceptance or admission of the existence of something. REASON FOR TAKING ACKNOWLEDGEMENT BETWEEN THE BORROWER AND LENDER When the statute of limitations is about to expire and the lender does not want to immediately proceed against the borrower by filing a civil suit, and the parties agree to renew the promissory note, the borrower can make an Acknowledgement in writing to save limitation. Subsection (1) of Section 18 of the Limitation Act states that if, prior to the expiration of the prescribed period of limitation for a suit in respect of any right, an acknowledgement of liability in respect of such right is made in writing and signed by the party against whom such right is claimed, a new period of limitation shall be computed from the time when the acknowledgement was so signed. CONDITIONS FOR VALID ACKNOWLEDGEMENT For a valid Acknowledgment to ...