Legal Question in Business Law in India

15.05.2015

Dear Sir / Madam,

Section 11 of the Limitation Act, 1963 reads :

11. Suits on contracts entered into outside the territories to which the Act extends :

(1) Suits instituted in the territories to which this Act extends on contracts entered into in the State

of Jammu and Kashmir or in a foreign country shall be subject to the rules of limitation contained

in this Act.

(2) No rule of limitation in force in the State of Jammu and Kashmir or in a foreign country shall be

a defence to a suit instituted in the said territories on a contract entered into in that State or in a

foreign country unless-

(a) the rule has extinguished the contract; and

(b) the parties were domiciled in that State or in the foreign country during the period prescribed

by such rule.

The limitation periods differ based on the nature of the debt or liability and are enlisted in the following link :

http://comtax.up.nic.in/Miscellaneous Act/limitation-act-1963.pdf

In my opinion, if the terms and conditions of the Agreement between you and the foreign creditor stipulate that any legal differences, disputes or matters of arbitration will be governed by the prevailing laws in the creditor's country, and if the case is still legally valid in the creditor's country, the creditor can still action anf file a representation of his claim against you in his own country, which will remain legally binding on you.

Regards,