19. Effect of payment on account of debt or of interest on legacy –
Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly Authorised in this behalf, a fresh period of limitation shall be computed from the time when payment was made:
Provided that, save in the case of payment of interest made before the 1st day of January,1928, an acknowledgment of the payment appears in the hand-writing of, or in a writing signed by the person making the payment.
Explanation – For the purposes of this section, –
(a) Where mortgaged land is in the possession of the mortgage, the receipt of the rent of produce of such land be deemed to be a payment;
(b) “Debt” does not include money payable under a decree or order of a court.
FERRO ALLOYS CORPORATION LTD. v. RAJHANS STEEL LTD.