Validity of loan documents

TUSHAR (Querist) 21 May 2016 This query is : Resolved
If a customer has been sanctioned a limit by his bank as overdraft in his Current Account or Cash Credit account, and on a day the balance of account becomes zero. What will be the status of loan documents? Will they be legally enforceable, for the debit raised on later dates? Material fact is that I had sanctioned a limit of Rs.10.00 lacs to one borrower, with all documents executed. Balance of account on 01/08/2013 had become Zero. Now will we have to make a fresh agreement and documentation, since there is no consideration? What does Contract Act says? Please reply

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