Supreme Court Clarifies Applicability of Section 18 of the Limitation Act to Recovery Proceedings

The Supreme Court has ruled that an acknowledgment of liability under Section 18 of the Limitation Act, 1963, initiates a fresh limitation period, even if the payment's due date has not yet arrived.

The case arose from New Mangalore Port Trust's (NMPT) demand for arrears on retrospectively revised license fees, which was challenged as time-barred.

The Court ruled that such acknowledgment by licensees extends the limitation period and consequently set aside the impugned order of the Karnataka High Court. 

The court also clarified that once the Limitation Act applies, all its provisions, including Section 18, apply to proceedings under the Public Premises Act. NMPT’s writ petitions were restored for further consideration.