Legal effect of acknowledgment of debt
I retired from public service in 2015 and at the time of retirement I had some employment claims against my employer, the Government, which I was entitled to be paid under the staff circular but such claims were not paid to me in time because the office had no funds. Immediately after retirement I wrote a letter to my former employer reminding him to pay me the outstanding debt which he acknowledged in writing and promised to pay. In 2017 I wrote a reminder letter which was received by the employer who again acknowledged the debt and promised to pay but to date I have not been paid despite the two acknowledgements of the debt and the promises to pay. I have been told that the Government has revoked the staff circular on which my claim was founded and now only staff statutory payments are made. May I know if legally my claims are still in time and if the revocation of the staff circular on which my claim is based invalidates my claim?
FC, Iringa
The Law of Limitation Act [Cap.89 R.E 2019] in item 24 of Part I of the Schedule prescribes 6 years as the period of limitation for recovery of debts like yours. However, section 27(3) of the Act provides that an acknowledgment to pay the debt, if made in writing, extends the period of limitation prescribed for recovery of the debt. Once a debtor acknowledges the debt, the date of acknowledgment becomes the new date of accrual of the claim. But in order to rely on the acknowledgment to pay as extension of the period of limitation, such acknowledgment must have been made before the expiration of the initial limitation period prescribed for the claim. In that regard, the two acknowledgements made by your former employer to pay you extended the period of limitation to recover the debt from your former employer because the acknowledgments were made before the expiry of 6 years period of limitation prescribed for your claim. Now the new 6 year period of limitation is counted from 2017 when the last acknowledgment of debt was made by your former employer. If you want to keep on extending the period of limitation, make sure you write another reminder letter now before the new 6 years of limitation expire this year.
Further, section 32(1)(c) of the Interpretation of Laws Act [Cap.1 R.E 2019] is very clear that the repeal or revocation of the law does affect the right, interest or privilege created, acquired or established under the repealed or revoked law. Although a circular is a mere administrative guide and not law, it is our opinion that the same principle applies to the circulars that the revocation of a circular does not affect the right, interest or privilege accrued, acquired or established under the revoked circular. That is to say, your claim founded under the revoked circular is not invalidated by revocation of the circular on which the claim is founded.