ACKNOWLEDGEMENT OF DEBT
This Acknowledgement of Debt (this "Acknowledgement") is made at __________ on __________.
BY
__________, of __________ (the "Debtor"),
IN FAVOUR OF
__________, of __________ (the "Creditor").
The Debtor and the Creditor are each a "Party" and together the "Parties".
RECITALS
A. __________
B. The debt described in Recital A became due and payable on __________ in the original amount of __________.
D. __________
NOW THIS ACKNOWLEDGEMENT WITNESSES as follows.
- ACKNOWLEDGEMENT OF LIABILITY
1.1 The Debtor unconditionally acknowledges and admits that a sum of __________ is due and owing by the Debtor to the Creditor as at the date of this Acknowledgement, being the balance of the debt described in the Recitals, and that this liability is presently subsisting and has not been discharged, released or extinguished in any manner.
1.2 This acknowledgement is made by the Debtor in the Debtor's own hand and signature, of the Debtor's own free will, without coercion, and with full knowledge of its legal effect.
- EFFECT ON LIMITATION
2.1 The Parties record that, as between themselves, the position as to limitation is as follows: __________
2.2 Where the first option in clause 2.1 applies, this Acknowledgement is made before the expiry of the period of limitation applicable to a suit to recover the debt described in the Recitals, and the Parties intend it to take effect under s.18 of the Limitation Act, 1963, so that a fresh period of limitation begins to run from __________, the date of this Acknowledgement.
2.3 Where the second option in clause 2.1 applies, the period of limitation for a suit to recover the debt described in the Recitals had already expired before this Acknowledgement was made, and the Debtor's undertaking in clause 3 below is given, and is intended to take effect, as an express promise in writing, signed by the Debtor, to pay a debt which the Creditor might have enforced but for the law of limitation, within the meaning of s.25(3) of the Indian Contract Act, 1872, and is accordingly a valid contract notwithstanding the absence of fresh consideration and notwithstanding that a suit on the original debt would by then have been barred.
- PROMISE TO PAY
3.1 The Debtor undertakes and promises to pay the Creditor the sum of __________, together with interest as stated in clause 4, in the manner stated in clause 5.
- INTEREST
4.1 __________
- REPAYMENT
5.1 __________
5.4 Every payment made under this Acknowledgement shall be applied first towards interest accrued and unpaid, and the remainder towards the principal balance acknowledged in clause 1.1.
- DEFAULT
6.1 __________
6.2 Nothing in this Acknowledgement, and no forbearance or extension of time given by the Creditor, waives the Creditor's right to recover the full amount then outstanding, or amounts to a fresh acknowledgement or promise except by a further instrument signed in the same way as this one.
- NO NOVATION; NO SECURITY CREATED
7.1 This Acknowledgement records and re-dates the existing debt described in the Recitals; it does not discharge that debt by substitution of a new obligation, and does not novate, in the absence of the Creditor's express written agreement to the contrary.
7.2 This Acknowledgement does not itself create, and is not to be treated as creating, any mortgage, pledge, hypothecation or other security interest over any property of the Debtor. Where security is intended, it shall be created by a separate instrument executed for that purpose.
- STAMP DUTY
8.1 This Acknowledgement is executed in __________. __________ shall bear the stamp duty payable on this Acknowledgement.
- NOTICES
9.1 Notices under this Acknowledgement shall be in writing and delivered by hand against acknowledgment, or by registered post or reputed courier with proof of delivery, to the Debtor at __________ and to the Creditor at __________, or to such other address as a Party notifies in writing.
- DISPUTE RESOLUTION AND GOVERNING LAW
10.1 __________
10.2 The seat and venue of any arbitration under this Acknowledgement, and the place of any court proceedings, is __________, and the courts at __________ have exclusive jurisdiction, subject to any arbitration agreed above.
10.3 This Acknowledgement is governed by the laws of India as in force in __________.
- GENERAL
11.1 This Acknowledgement is the entire agreement between the Parties about the debt described in the Recitals and supersedes all prior discussion about it, save for the underlying transaction recited in Recital A itself.
11.2 No amendment is effective unless made in writing and signed by both Parties.
11.3 If any provision is held invalid or unenforceable, the rest of this Acknowledgement continues in effect.
IN WITNESS WHEREOF the Parties have executed this Acknowledgement at __________ on __________.
SIGNED AND DELIVERED by the DEBTOR
__________
Signature: ______________________________
SIGNED AND DELIVERED by the CREDITOR
__________
Signature: ______________________________
WITNESSES
- __________
__________
Signature: ______________________________
- __________
__________
Signature: ______________________________