Arpit took a debt of Rs.10,000 from Bharat on January, 1998 and promised to pay by 31st December, 2003. He could not pay such debt within the stipulated time. On 1st December, 2006, Arpit paid Rs.500 as interest against such debt to Bharat against receipt. Bharat filed a suit against Arpit to recover such debt on 15th December, 2008. Whether the suit filed by Bharat is within the period of limitation ? Decide with reasons citing relevant provisions of the law.
As per section 19 of the Limitation Act, 1963, where part payment of debt or interest on debt is made, then a fresh period of limitation begins from that date. The limitation period for loans and contracts is three years. Since the interest is paid on 1st December, 2006, and the suit against Arpit to recover such debt is filed on 15th December, 2008, it is within the limitation period.
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