Time barred debt.
s.loganathan
(Querist) 02 October 2010
This query is : Resolved
In the year Nov. 2004, I took a agri-loan for purchase of a Tractor under the scheme for large farmers. I only paid three half yearly instalments ( last payment was in 2006 ). I was not able to make payments after that. In the year 2008, the state govt. announced a waiver scheme. Some of the people I know had their outstanding waived. I never heard from the Bank or even any demand or communication. Now, I receive a legal notice, out of the blues, stating that I have a subsisting debt, and that I purportedly executed a revival letter on the last date of Nov. 2007 and also in March 2010. This is a blatant lie as I had not issued any such letter. Now, the legal notice demands payment of entire sum or else they will publish my photo in the newspaper as defaulter. It has been four years since I last made payment or had any communication with the Bank. Even if my loan was not included in the waiver schemed, would not my debt be hit by limitations? Can the Bank threaten me with publication in the newspaper?
Madan Gopal Dasaur
(Expert) 02 October 2010
In case you have not issued/executed revival letters, then debt will certainly hit by limitation.
Kiran Kumar
(Expert) 02 October 2010
as per procedure the bank can not publish your photo as a defaulter, they can not defame you.
unless and untill you acknowledge the time barred debt it can not be revived.
you need not to reply to their notice, let them take any step it will hit back.
Devajyoti Barman
(Expert) 02 October 2010
Yes, the debt seem to be time barred and the bank can not file a case for recovery of money unless they relies upon any forger document to create a subsequent cause of action
s.subramanian
(Expert) 03 October 2010
I agree with the above views.I would like to add that You file a criminal complaint against the bank authorities on the basis of their notice that they have forged and fabricated loan documents against you. This is important for you if the bank files any suit for the recovery of the said amount.
Chanchal Nag Chowdhury
(Expert) 03 October 2010
Try to remember the papers U have signed. In such cases, the bank usually takes signatures on blank letters of "confirmation of balance".I think they have now filled up the same to save limitation.
Parthasarathi Loganathan
(Expert) 03 October 2010
I disagree with the points shared on this aspect for the simple reason that Banks generally obtain Express Promissory Letters which can revive any time-barred debts apart from Revival Letters. Obtention of signatures on blank letters is gross violation of Fair Practice Code prescribed by the Regulatory authorities which banks are exposed to heavy penalties and disrepute to Public Image which no banks will take any chance.
masood ausaf
(Expert) 03 October 2010
Time Limit for filling the recovery suit is 3 years from the date of grant of loan which is extended for further 3 years from the date of last acknowledgement in writing. In case you have not acknowledged the debt in the last three years the said debt is certainly time barred and the Bank can not file recovery suit.
s.loganathan
(Querist) 03 October 2010
Mr. Parthasarathi Loganathan, what is an 'Express Promissory Letter'? If such a tool is possessing the power to overide the tenets of law on limitations, then we might as well do away with the Law of Limitations. No doubt Banks have been the pillars of our economy, but inspite of 'Fair Practices Code' there have been numerous misadventures by unscrupulous officials having invited the irk and ire of authority. In my case, if the errant Bank proceed further and commit an abuse of his authority, I will certainly take him to task.
Sri Vijayan.A
(Expert) 04 October 2010
But in reality, I heard that some banks get the signatures of borrower in the unfilled forms. (Not in blank paper)
Un-filledin forms include blank letters.
As the borrower is a lower handed person in that situation he has to sign without asking anything.
So, I request Mr.Loganathan to recollect whether he has signed any such papers.
