Definition
A written or oral admission by the borrower that the debt exists. Under Section 18 of the Limitation Act, 1963, a fresh acknowledgement before a court or in writing signed by the debtor extends the limitation period for filing a recovery suit by 3 years from the date of acknowledgement.
Example
A letter from a borrower acknowledging outstanding dues and requesting a repayment schedule constitutes an acknowledgement of debt.
Need Expert Advice on Acknowledgement of Debt?
For specific advice on how Acknowledgement of Debt applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates