Death of loan borrower & bank guarantor

Dear Mr. Hariya,

 Limitation period for recovery of debt is three years from your last acknowledgement of loan. Limitation period only means bank can not recover it through court..

You can  deny the entire contents of notice / reply suitably. You will still need to contest the claim, denying the amount due and pleading limitation as and when and if bank files the case; else suit may be decided against you ex-parte, depending on exact facts.

Mr. Prakash Kantilal Hariya,

Your liability depends upon the terms of the guarantee agreement executed by you and your friend. Please verify the terms of the guarantee. If it is continuing guarantee, death of borrower does not automatically discharge the guarantors nor the debt is barred by limitation, if the term speaks that your liability does not cease until closure of the loa account. Denying the liability is not that easy and mere deneyal does not dicharge you from the liability. It is better to contact the bank and discharge your moral obligation as the bank had accommodated the deceased borrower on the strength of your guarantee agreements. Otherwise you have to face litigation in court of law.

Sehkari bank can recover the amount through arbitration proceedings before the Registrar Coop. Societies as the jurisdiction of civil court is barred.  It seems that the bank has not filed the case since it is time barred.   Time barred loan cannot be recovered merely by sending the notice. In case the bank files a case against you and supply you the copies of documents and statement of account, you can contest the case based on the documents supplied and your defence therein.   After the death of your friend, the loan can be recovered firstly from the legal heirs of your friend from the assets of your friend and in case legal heir fails to repay, the loan can be recovered from you as your liability is joint and several.

Assets of the deceased if any devolved in  favour his legal heirs alone can be dealt with in decree execution.

pls share any judgements on limitation of 3 years.

You were to fully refund the loan if it was not time barred.