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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Limitation

Three partners, Anil, Bhavna and Charu, jointly owe Rs 5 lakh to a supplier. Only Anil signs a written acknowledgment of the debt. What is the effect on Bhavna and Charu under the Limitation Act, 1963?

Neither Bhavna nor Charu is chargeable. The Act says one of several joint contractors or partners is not made liable merely because another signed a written acknowledgment or made a payment. The acknowledgment therefore affects only Anil, unless others independently acknowledge.

  1. ANeither Bhavna nor Charu is chargeable merely because of Anil's written acknowledgmentCorrect
  2. BBoth are chargeable because partners are agents of each other
  3. COnly Bhavna is chargeable as the senior partner
  4. DAll three are chargeable if the acknowledgment is oral

Explanation

Section 20(2) states that one of several joint contractors, partners, executors or mortgagees is not chargeable by reason only of a written acknowledgment signed or payment made by another of them. So Anil's acknowledgment does not bind the others by itself. The agency argument fails because the section specifically rules this out.

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