How the 'acknowledgement of debt by borrower' helps banks in enforcing money suits while the document is Time-barred?

The documents taken by banks for a credit facility, do not have perpetual life. The Limitation Act, 1963 prescribes limitation for different types of documents. Limitation period is the time limit within which the parties to a legal agreement, can take action in a court of law to enforce their legal rights. The life of a loan documents like Demand Promissory Note (DPN) is three years (from the date on it). Once the document is time-barred then the bank will not be able to enforce money suit to recover its due through the Court of Law (known as the statute of limitations). However, we need not assume that the borrower doesn't still owe it to the creditor because the loan document (DPN) is time-barred. Banks have many other ways to find out whether they can still enforce the recovery suits against the defaulter. The acknowledgement of liabilities obtained from the borrower before the expiry of the limitation period grants a fresh period of limitation to the loan documents under Section 18 of the Limitation Act, 1963. Section 25(3) comes to the rescue of time-barred loan documents, where the period of limitation has already been expired. The acknowledgement of debt that was made within the period of limitation shall be treated as a promise to pay and the same can be invoked by the application of Section 25 (3) of the Contract Act, 1872. A fresh period of limitation starts from the date of acknowledgement of debt. It is pertinent to mention that piece of evidence such as letters / e-mails (where liability is admitted), liability mentioned in the balance sheet, part payment of a loan made by cheque/ cash amount to an acknowledgement of debt. Acknowledgement of debt by the party during the limitation period of loan documents would automatically extend the validity period of the loan document for a further period of 3 years from the date of such acknowledgement provided that the same is directly or indirectly relates to the debt. A balance sheet signed by the authorized person. A balance confirmation letter also serves as acknowledgement of debt.