Is it a time barred debt?

V.Raghavan (Querist) 25 August 2008 This query is : Resolved
Under theThe Kerala State Fiancial Corporation incorporated under the Central ACt of 1951 (No.LXIII of 1951).

A Mortgageloan was transferred in 1994.
Documents executed in 1994
Last instalment due on June 2001.
Property sold on public auction on March 2004
The amount was adjusted in the loan account.
Still there is a shortfall. Can this financial institution take action for the recovery of the shortfall? Is it not time barred since the acution was in March 2004 and till date even after 4 years and 5 months no intimation or notice of recovery was sent. Is there is any possibility of recovery?

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Guest (Expert) 25 August 2008
In my understanding, SFC are government bodies and they can bring in Public Debts Recvoery Act for the rest of the shortfall.

That is SFC are more powerful than Scheduled Banks when it comes to recvoery. They deals with Public Money.

One thing is Check with the SFC many times after public auction they usually write off the remainder, if that has happened you are safe.

V.Raghavan (Querist) 25 August 2008
Dear Mr.Kotesh. Thanks for your reply but the shortfall is not yet written off. There are no intimation, notice served sofar for the recovery of shortfall even no intimation regarding the acution sale and the sale proceeds till date even after four complete years. The shortfall is a personal debt and my doubt is whether it is covered with the usual liens of the limitation act.

R.S.Rajesh (Expert) 27 August 2008
It may be possible for the KSFC to proceed under Section 71 of the Kerala Revenue Recovery Act 1971 wherein the limitation Act is not applicable. Even, it is applicable, a period of 30 years is available for filing the suit to recover the amount due to the Govt.
Refer AIR 1998 Ker 31.

V.Raghavan (Querist) 27 August 2008
Thanks Mr.Rajesh. If u have the bar act of Kerala Revenue Recovery Act 1971 can u send me a copy please?

anantha krishna n.v. Advocate (Expert) 20 December 2008
Why complicate?

last instalment due is 2001. it is a mortgage loan. Obviously there is immovable property involved. the limitation would be 12 years and not 3 years. where is the problem now?

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