LAW OF LIMITATION - II
SUMEET
(Querist) 21 May 2008
This query is : Resolved
DEAR SIR,
A THING IN MY NARRATION IS MISSING THAT THE PROPERTY IS SOLD AS OF NOW AND A FEW BANK OFFICIALS KNOW IT WELL. FURTHER THE BANK HAS FILED A SUIT FOR THE RECOVERY OF DUE AMOUNT AND FINALLY IT WAS AGREED TO CREATE A TERM LOAN IN MY FRIEND'S NAME AND THE EARLIER LOAN WAS TREATED AS FULLY PAID. AFTER A FEW MONTHS, NO INSTALLMENT IS PAID BY HIM FOR THREE YEARS. UNDER THESE CIRCUMSTANCES IS THERE ANY VALID DEFENCE FOR HIM.
HE HAS APPROACHED TO THE BANK TWO YEARS BEFORE TO SETTLE THE LOAN AT ONCE BY PAYING IN LUMPSUM. THE BANK OFFICIALS COULD NOT PAY ANY ATTENTION TO HIM.
THANK YOU AND WAITING FOR YOUR REPLY...
J K Agrawal
(Expert) 24 May 2008
There is a limitation of period of three years to file a suit for recovery of loan but if an acknowledgement as per section 18 or part payment as per section 19 of the Indian Limitation Act 1963 is there the limitation period extends accordingly.
Defence of limitation is a very strong defense.
