Legal Question in Banking Law in India

Re: banking law

The limitation period depends upon facts of each case.

Though generally limitation for recovery of a debt is 3 years; but the date of starting this period of three years depending upon facts of each case.

In banks ususally the parties have transactions or have signed "balance confirmation" which extends the time of limitation in favour of the Bank for filing a suit;

secondly, if loan is secured by collateral property, the limitation application for "mortgage debts" is applicable which is usually 12 years.

Your case is very old; if the suit was filed in 1998 and is still pending, the Bank may agree to compromise the matter in terms of RBI's OTS Policy though the dates fixed under these policies have expired by now.

You should approach the Bank for a compromise.

Re: banking law

Contact a local advocate with full facts of the case.

Re: banking law

Declaration of NPA by bank has no relevance to limitation law. Suit can be filed within three years from the date of debt, default and time is extended by acknowledgment of liability in writing by the debtor and or part payment. In the instant case payments having been made and quite possibly supported in writing, the case filed in DRT is in time.