Time barred debt.
Ch. Sujatha
(Querist) 16 October 2008
This query is : Resolved
REspected Seniors,
In one case Mr. 'A' lent an amount to the Mr. 'B' basing on the promissory note on 30-09-2005. But Mr. 'B' not yet paid the said debt.
Recently on 10-10-2008 (I.e. After expiring the time for 3years and 10 days from the date of execution of promissory note )Mr. 'B' addressed a letter to Mr. 'A' therein he acknowledged his time barred debt.
In the above circumstances Mr. 'A' can recover the said promissory note with the aid of the said letter. If yes what is the procedure.
Thankning You Sir.
Srinivas.B.S.S.T
(Expert) 16 October 2008
Section 25 (3) of Contract Act applies to the present situation and you can initiate the proceedings for recovery of amounts.
Murali Krishna
(Expert) 17 October 2008
Sec 18 of limitation Act prescribes that any acknowledgment shall be before the expiry of the limitation period.
I differ from the view of Srinivas because from your query, i understood that it is not a contract, hence Sec 25(3)is not applicable. Sec 25 (3) applies if it is done by way of an agreement.
arunprakaash.m.
(Expert) 17 October 2008
Yes the creditor can recover the debt. Limitation for filing a case is calculated from the date on which the debtors acknowledgement of debt.
R.S.Rajesh
(Expert) 17 October 2008
There cannot be a valid Acknowledgement of debt on 10.10.08 in respect of a promissory note dt. 30.9.08. The Demand Promissory note is barred by time and the same is not enforceble. The extension of time is available only in case of the valid AOD. Therefore, the debt cannot be recovered based on the promissory note/invald AOD.
However, if there is a fresh promissory note executed in respect of the debt , the same is covered under Sec. 25(3) of the Indian Contract Act and the debt can be recovered.
Adv.Shine Thomas
(Expert) 20 October 2008
Tha debt cannot be recovered based on the existing p-note.
Adv.Shine Thomas
(Expert) 20 October 2008
Sec.18 of the Limitation Act is applicable.
