personal loan time limitation
Querist :
Anonymous
(Querist) 30 November 2009
This query is : Resolved
We had taken apersonal loan of Rs 50thousands in 2001. After payments of EMIs till 3-2002 there is no further transaction.The A/c is NPA since 2004. No legal notices were served & no further documents signed since 4-2001.There is no property mortgauged.
The bank issued a letter by ordinary post in 08-2009 asking for a payment of 50,000 + int. There is no legal notice till now.
Pls let me know 1.wheather the case is time barred? & 2.Even if it is time barred can we pay the debt in installments spread over 2 years?
Raj Kumar Makkad
(Expert) 30 November 2009
Loan is time barred and bank has got no legal right to recover and even if you want to pay, bank shall feel happy and shall provide time which you require as per your facility.
joyce
(Expert) 30 November 2009
if bank goes to recover the loan amount, they have to issue a letter, latter if not responded, a legal notice, then they are at opition to file a recovery suit aganist you. After recovery suit disposed off, then execution case is filed to recover the debts with interest. if at all these procedures comes across ur way, then first try to reply notice , then prove that loan is paid and made clear the debt. if failed to prove it with the documents u safegaurded to such situation, then go for liberal installment payment
n.k.sarin
(Expert) 30 November 2009
Mr. anonymous, no doubt loan is time barred.one thing which is most important that is reply of bank's notice, If you choose reply to notice ,the new limitation will start and create headache for you.
