VENKATACHALAM M (Senior Lecturer) 05 July 2013
Sir,
Can anyone enlighten me about how the Limitation act is applicable in the case of Term Deposits (Fixed Deposits) issued by banks? There are some TDs (Term Deposits) where the interest is not payable till the date of maturity. This is so even in the case of deposits that have a maturity period or more than three years. Doesn't it affect the provisions of the Limitation Act? Kindly advice.
Hemang (Advocate) 05 July 2013
No limitation would not apply because the deposit continues to remain in the hands of the Banker. The Banker is a trustee of the public money. The Bank would be the last institution to raise the callous issue. On the contrary, it is utilization of Fix Depositor's money by the Bank and therefore the interest accrues thereon. If the Bank has not paid the interest in time, or even after maturity, it is advisable to approach the Consumer Forum.
Advocate Ravinder (Advocate/Attorney) 14 July 2013
Well advised by Hemang sir.
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