I have given money to my relative on August 9th 2009 by check and again on October 28, 2009 by cash. My relative executed promissory note on Novermber 1st 2009 for both amounts. Since he refused to pay back the money, we filed case on August 22, 2012. However, my case was dismissed as barred by limitation because my lawyer mentioned in the plaint that the promissory note obtained as a collateral security.
The judge said, “since promissory note is taken as collateral security, first transaction is barred by limitation as three years has passed. Second transaction is valid but the plaintiff is failed to prove that said amount was advanced by way of cash. Hence, the suit is barred by limitation and dismissed with costs”.
My questions are
1. My understanding is promissory notes are valid for three years. What exactly collateral security is and why my case is barred by limitation.
2. Why my lawyer mentioned promissory note as collateral security? Does he favored the defendant?
3. What should be my next step?
4. I am from Telangana state and I want to Appeal in Hyderabad High Court. Please suggest trusted lawyers.
Thank you for your time.
