Non renewal of loan documents after 3 years

No since the borrowe has already acknowledged debt even after the period of limitation he cannot take plea of the same.

If the borrower got the loan renewed after 3 year period, from the date of execution of the earlier loan, then the guarantor who is not a party to the second renewed loan, will not be liable to that loan.  Whereas, if the second loan with the same conditions and amount was renewed within 3 years from the earlier loan, then he is also liable.   

My Bank sanctioned credit facilities in Nov 2005 to my Pvt ltd Company. They classified accounts as NPA on 07.04.07 and invoked Sarfaesi act on 31.07.07. Since there was protracted dispute on NPA classification and also non upgradation of accounts to standard after clearence of all dues continously after NPA and sarfaesi and also selling mortgaged property under Sarfaesi act in Sept 2008, I refused to sign Acknowledgemnent of Debt which was being insisted by Bank in Oct 2008. They lodged OA at DRT in Aug 2009 for recoevery of balance amounts against Directors Personal guarantee.

Is the limitaion valid in Aug 2009 for Personal guarantee of Directors. Pls advice.

Is the limitation valid for our Pvt Ltd company at the time of filing OA at DRT. Please advice.

Mr. Harish Bhatia,

Since the proeprties are mortgaged in your loan account, the period of imitation is 12 years so it is well within time.

As they have already filed under serfasi act the case is not barred by time

If amount is big you can challange personal guarntee of directors as illegal ab-inito.

Regarding the liability of second guarntor in above case if originally coninuing gurantee bond is not sighed he is not liable  DRT OR NO DRT.