Report No. 3
18. Effect of payment on account of debt or of interest on legacy.-
(1) 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 the payment was made:
Provided that, save in the case of a payment of interest made before the 1st day of January, 1928, an acknowledgement of the payment appears in the handwriting of, or in a writing signed by, the person making the payment.
(2) Where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment for the purpose of subsection (1).
Explanation.-Debt does not include money payable under a decree or order of Court.