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ibps-so 2020 · Question 321 of 351

When a debtor makes a payment on account of a debt before the expiry of the prescribed limitation period, what is the effect on the limitation period?

  1. AThe existing period of limitation comes to an end
  2. BA fresh period of limitation begins from the time when the payment is madeCorrect
  3. CThe existing period of limitation continues to run
  4. DA fresh period of limitation begins from the time decided by the debtor or creditor
  5. ENone of the above

Answer: B. A fresh period of limitation begins from the time when the payment is made

Official answer key verified. Detailed explanation coming soon.

Source: IBPS SO Law Officer Mains Memory Based 2020 - Adda247 · memory-based

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