Time barred debt

AMAN GULATI (Querist) 27 December 2014 This query is : Resolved
My Acquaint Mr Chirag did some shoppings from ABN Amro (Now Kotak Mahindra)Credit card from dec-2006 to oct-2008 totalling around Rs 1 Lakh.
He also paid installments around 77000 (principle+interest) but after that he didnt made any payment of principle or interest because of financial difficulties.
The amount is now over 70000 due to penalties,interest and tax included therein.
He didnt received any legal notice from the bank till now.
Now a new manager is appointed and he threatened Mr chirag by saying to file a police complaint and use of goons for recovering of the balance amount.
As per section 25(3) of Indian Contract Act lender have no right to recover the debt which has exceed the period of limitation which is 3 years and as per the guidelines of RBI debt becomes loss asset for the banks if the default in payments continues for more than 3 years and to be written off as bad debts if auditor consents that so.

Now as the period of default is over 6 years,so it has exceed the period of limitation and bank would have also declared it as a loss asset and bad debts.
I just want to ask that are there any additional aspects of law in this case and can a bank legally recover the money, if yes how?

Your answers are precious..Kindly advice..:)

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Shailesh Kr. Shah (Expert) 27 December 2014
What is the last date of payment?

AMAN GULATI (Querist) 27 December 2014
31 oct 2008

Devajyoti Barman (Expert) 28 December 2014
Certainly civil suit for recovery of money can not be filed anymore but they can file criminal case of cheating even now.
Since you have borrowed money you are obliged to make the payment. However you can make a negotiation with bank so both of you reach to an agreed sum of money.

Do not cheat Bank's money.

AMAN GULATI (Querist) 28 December 2014
thanks to all of u for ur answers...:)

Dr J C Vashista (Expert) 28 December 2014
Academic query by a CA Student.

ajay sethi (Expert) 28 December 2014
agree with Mr barman

Rajendra K Goyal (Expert) 28 December 2014
Agree with the expert Devajyoti Barman. However,If any acknowledgement of liability in last 3 years was made, the limitation would start from that date.

Shailesh Kr. Shah (Expert) 28 December 2014
it would be better to settle loan with bank amicably to avoid criminal case.

Guest (Expert) 28 December 2014
Complete your CA studies to would find the answer to your query along with the after effects of non-payment of banker's debt.

Kumar Doab (Expert) 28 December 2014
Agreed with experts.

H.M.Patnaik (Expert) 29 December 2014
EVen if it seems to be an academic query, Experts have taken a sportive way to enlighten the querist.

malipeddi jaggarao (Expert) 29 December 2014
Declaring loss asset by the Bank and RBI guidelines as regards treatment of asset is no connected with your issue. That is the internal matter of the Bank and it will not prelude the Bank from recovering the amount from the card user. If limitation is expired, they may file a criminal complaint. Hence it is better to have a negotiated settlement.