Legal Question in Banking Law in India
I am from Chennai, India. Nine years back (in Oct 2001) I gave a loan of Rs.Three Lakh against the pronote signed by the borrower. Till now the borrower has returned Rs. Two Lakhs. This money was given to me in cash on different dates in 2009 and 2010. The date of return and the amount have been recorded on the reverse side of pronote and the borrower has signed against the entries to have the evidence of return transaction.
I understand that the normal life/validity of pronote is only three years. However, my lawyer says that the pronote is still valid as there are transactions within the last three years (part of money returned by the borrower as evidenced by what is written on the back side of pronote) and hence I sue him using the pronote.
Is my lawyer right? Can I use the pronote for further proceedings? Kindly adivse me. Thanks.
2 Answers from Attorneys
I am afraid not. The limitation could have been extended only if the entry of receipt of any amount had been recorded before october 2004. Any recording after october 2004 will not extend the period of limitation. the acknowledgment of debt has to be made in writing within the limitation period. So, if your pronote was on 3rd October 2001, then the limitation expired on 2nd October 2004.. But if debt is acknowledged on or before 2nd October 2004, say on 1st October 2004, limitation again will be extended upto 30th Septemebr 2007.. For fresh extension another acknowledgment is required before 30th September 2007 for extension from september 2007 to septemeber 2010. In your case the acknowledgement of debt is in 2009 after the limitation had expired. therefore the claim on the pronote would be time barred
Sir, you may go through section 18(1) and 19 of the Limitation Act 1963, easily available in the market.
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