Limitation for Banks to file for recovery

Limitation Act  applies in SARAFESI.See section 36 of the Act.

with respect to loan secured by mortgaged by immovable property it is 12 years from the date of agreement/last acknowledgment of debt and in other cases 3 years from the date of agreement/last acknowledgment of debt.

Until the emergence of debt collection business, debt collection in India, was never treated as a specialized job and was always treated as one of the jobs that legal departments of the banks and financial institutions were required to undertake. A typical legal department of an organization would approach the collection job strictly as a legal issue rather than as a revenue collection measure. Litigation would be the only tool used for recoveries and no other tool was either known or used by the industry. Litigation as a recovery measure always had its own limitations due to long and winding court procedures the Indian legal system is always criticized for. On the other hand, foreign banking firms introduced the concept of specialized debt collection services. Debt collection services became one of the many services that began to be outsourced to specialized agencies.

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I go with Mr.Negi's opinion.

I agree with Mr. Negi.

Further, The limitation period in demand loan starts from the date of demand.

I agree with the experts