LAKSHMIRATAN COTTON MILLS CO. LTD. vs ALUMINIUM CORPORATION OF INDIA LTD.

The Supreme Court held that under Section 19(1) of the Limitation Act, 1908, an acknowledgment of liability must relate to a subsisting liability and can extend the limitation period without creating a new right of action. The Court found that the letter from the Secretary-cum-Chief Accountant of the Corporation constituted a valid acknowledgment, thereby binding the Corporation despite its claims of limitation. Consequently, the appeals were allowed, reversing the High Court's dismissal of the suits as time-barred.