Ajay Gupta 02 February 2018

Promissory note as collateral security?

I have given money to my relative on August 9th 2009 by check and again on October 28, 2009 by cash. My relative executed promissory note on Novermber 1st 2009 for both amounts. Since he refused to pay back the money, we filed case on August 22, 2012. However, my case was dismissed as barred by limitation because my lawyer mentioned in the plaint that the promissory note obtained as a collateral security.

The judge said, “since promissory note is taken as collateral security, first transaction is barred by limitation as three years has passed. Second transaction is valid but the plaintiff is failed to prove that said amount was advanced by way of cash. Hence, the suit is barred by limitation and dismissed with costs”.

My questions are
1. My understanding is promissory notes are valid for three years. What exactly collateral security is and why my case is barred by limitation.
2. Why my lawyer mentioned promissory note as collateral security? Does he favored the defendant?
3. What should be my next step?
4. I am from Telangana state and I want to Appeal in Hyderabad High Court. Please suggest trusted lawyers.

Thank you for your time.

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G.L.N. Prasad (Retired employee.) 02 February 2018

Question your Advocate, as nothing can be done now except by way of further appeal. The general term security refers to in addition to Primary, and in case of primary, collateral security is in addition to primary, can be resorted to further secure the loan. You may not get answers to your query, as lot of facts are needed. There are many advocates in Telangana, and depending on your financial strength, you can engage advocate after taking care of the said reasons for dismissal. Every dismissal may not qualify for appeal. If there is strength, and if the trial court overlooked some fact or law, then only appeal helps and it takes further ten years to come on to bench.

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