Renewal of bank loan documents
bhajan partap singh dhaliwal
(Querist) 14 March 2013
This query is : Resolved
A borrower has gone out of India on 7th January, 2013 for three months. Renewal of loan documents is due on 20.03.2013. But the borrower is returning to India only on 07.04.2013. Will the documents be time barred w.r.t to limitation period. Should the bank file suit before 20.03.2013?
Guest
(Expert) 14 March 2013
If the bank remains sleeping without making any effort to get the documents renewed, there would be no fault on the part of the debtor. However, if the bank has already started the process, on non-renewal of loan documents, the banker would be authorised to invoke the provisions of the consitions laid down in the agreement. There is no bar to get the documents renewed, if the debtor has gone out of India. The documents can be renewed, sent by getting attested by the competent authority of the High Commission/ Consulate/ Embassy of India in that country.
bhajan partap singh dhaliwal
(Querist) 14 March 2013
I refer to note by Mr. PS Dhingra with thanks. Under article 15 of Limitation Act 1963, is there a provision that for the period, a borrower remains out of India, the limitation period is extended for the said period. Please enlighten me.
Guest
(Expert) 14 March 2013
Thanks for your appreciation. Exemption from limitation is always subject to merits of the case depending upon proof of efforts made or compulsions and how effectively the advocate of the case presents his point. Mere the debtor going out of India cannot be the valid point. If there is no proof of efforts, provisions of limitation act would prevail.
But, I feel by emphasizing only on the out of india aspect, you are keeping the terms of agreement totally out of consideration. There must be the provisions to secure the loan and action by the banker to effect recovery the loan in case of any type of default on the part of the loanee.
prabhakar singh
(Expert) 14 March 2013
I agree with Dhingra ji,since Limitation Act does not lay that a suit can not be filed if the defendant is out of India.
The section 15(5)only enables plaintiff to wait till the defendant comes back to India.
The said provision is reproduced below:
The Limitation Act, 1963
15. Exclusion of time in certain other cases -
(5) In computing the period of limitation for any suit the time during which the defendant has been absent from India and from the territories outside India under the administration of the Central Government, shall be excluded.
Raj Kumar Makkad
(Expert) 14 March 2013
Nothing to add more after reading wise replies of the experts.
