Legal Question in Banking Law in India

Bank took action under the sarfaesi act and recovered an amount of Rs25 Lakhs out of the total dues of Rs40 Lakhs. The normal three year period from the date of the revival letter executed by the Borrower is already over. Now can the Bank file OA before DRT for recovery the balance amount of Rs15 Lakhs. Can the period of limitation for filing the balance amount be taken as 3 years from the date of recovery of the amount as per the SARFAESI Act.


Asked on 3/02/10, 7:01 pm

1 Answer from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The Bank will disclose limitation based on cause of action in its O.A. You should not depend upon limitation as it may be a very weak defence, even if available.Try to settle the matter out of court to avoid unnecessary litigation expenses.

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Answered on 3/03/10, 5:05 am


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