Legal Question in Banking Law in India

I had a cedit card in 2004 and the total outstanding on it was around 65000 rs.The last payment made by me towards that card was some time in jan 2005.Now a few days back i got a summon from the bank asking me to come to lok adalat to settle the same.

Could someone please tell me if the statute of limitation applies here?after how many years does the statute of limitations come into play?

thanks a lot and I am from INDIA


Asked on 10/12/10, 11:41 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

The claim is barred by limitation. Loan repayable on demand gets barred on the expiry of 3 years from the date of the debt or from the last payment evidenced in writing. you can contest the Bank's claim on limitation. You need not attend the lok adalath and refuse to pay the claim, if it is time barred.

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Answered on 10/14/10, 7:49 pm


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