The debt is more than six years old. Is it time-barred, or did a part-payment restart the clock?

A friend borrowed money years ago, or a customer stopped paying an old account. You now want to sue, and the other side says it is "too late". Whether it is depends on when time started and whether anything happened since to restart it.

What is the basic time limit?

Under section 6(1)(a) of the Limitation Act 1953, actions founded on a contract or on tort cannot be brought after six years from the date on which the cause of action accrued. For a loan or unpaid invoice, the cause of action usually accrues when payment fell due and was not made, for example the repayment date or the end of the credit period. For a loan repayable "on demand", the terms and the date of demand matter.

Limitation is a defence. The court does not apply it on its own: the defendant must raise it. If it succeeds, the claim fails even if the debt was real.

Can a part-payment restart the clock?

Yes. Under section 26(2), where the person liable acknowledges the claim or makes any payment in respect of it, the right of action is treated as accruing on the date of the acknowledgment or the last payment. In practice, a new six-year period begins.

An acknowledgment must be in writing and signed by the person making it, or by their agent (section 27). A phone call saying "I know I owe you" is not enough. Messages, emails or letters that admit the debt can qualify, depending on their wording and on whether they can be shown to come from the debtor. A payment does not need to be in writing, but you must be able to prove it, for example with bank records.

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What about fraud or mistake?

Section 29 postpones the start of time where the action is based on the defendant's fraud, where the right of action was concealed by fraud, or where the action is for relief from the consequences of a mistake. Time then runs from when the claimant discovered, or with reasonable diligence could have discovered, the fraud or mistake.

What if I already have a judgment?

A judgment is different. An action upon a judgment cannot be brought after 12 years from when it became enforceable, and arrears of interest on a judgment debt cannot be recovered after six years from when the interest fell due (section 6(3)). Enforcement steps also have their own procedural rules, so do not sit on a judgment.

What should I do first?

1. Find the due date: the agreement, invoices, credit terms, and any demand.
2. List every payment with dates, from bank statements.
3. Collect written admissions: signed letters, emails, WhatsApp or SMS messages acknowledging the debt.
4. Count six years from the latest of the due date, acknowledgment or last payment.
5. Act before the deadline: send a letter of demand and file the claim in time. A letter alone does not stop time running.

Example

Ali lent RM20,000 to a business partner in 2018, repayable by December 2018. The partner paid RM1,000 in March 2021 and sent a WhatsApp message in 2022 saying "I will settle the balance, give me time". Even though the original due date is more than six years ago, the part-payment and the written message may each restart time, so a claim filed in 2026 may still be in time. The evidence of who sent the message will matter.

Common mistakes

• Thinking a letter of demand stops time. Only filing the action does.
• Relying on a verbal admission, which does not meet section 27.
• Counting from the wrong date, such as the date of the loan rather than the due date.
• Waiting while "negotiating" until the limit passes.

When to speak to a lawyer

Speak to a lawyer as soon as a debt is close to six years old, or if the debtor says the claim is time-barred. See our civil litigation page; you can also contact us.

Frequently asked questions

Does a WhatsApp message count as a written acknowledgment?

It may, if it clearly acknowledges the debt and can be shown to come from the debtor. Courts look at the wording and the evidence of authorship.

Does the same rule apply to guarantors?

A guarantor's liability is a separate contract. An acknowledgment or payment by the borrower may not bind the guarantor, so check each person separately.

Is the time limit different for personal injury?

Personal injury claims in negligence also generally fall under the six-year period in section 6(1)(a). The separate latent-damage rule in section 6A applies only to negligence claims that do not involve personal injury.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia
2. Contracts Act 1950 (Act 136), AGC Laws of Malaysia
3. Rules of Court 2012 (P.U.(A) 205/2012), text published by the Malaysian Bar, including Orders 12, 13, 18, 19 and 93

Fact-checked on 17 Oct 2026