Banking agreements-limitation period
v.sarat patnaik
(Querist) 29 October 2011
This query is : Resolved
agreement of loan(stamped/unstamped)
SHG loan agreement
mortgage loan
Dp note
guarantee agreenebt
-- is revival letter is a must for all the above agreements after 3 years ?
prabhakar singh
(Expert) 29 October 2011
Repeated query hence answer also repeated:
"There is no term called "revival",rather, if i know ,it is called acknowledgement of loan
that too with in period of limitation that is with in 03 years and not after 03 years.All depends on how original documentations were made.
Nothing can be spoken in that short cut as asked."
Raj Kumar Makkad
(Expert) 29 October 2011
Come with true problem otherwise go through law books.
M V Gupta
(Expert) 31 October 2011
The limitation period for the Loan agreement, in case it is secured by DP note only, three years from the date of the DP note. If the loan is secured by mortgage, the mortgage security can be enforced at any time within 12years form the date of mortgage. But the DP note should be got renewed before the expiry of three years period from the date of the note by obtaining acknowledgement of the debt on the DP note. Guarantor's liability is co extensive with that of the Principal Debtor.If the main debt is time barred the guarantor also gets discharged from his liability.In view of the above banks insist for acknowledgement of debt once in every three years to save the debt from becoming time barred.
v.sarat patnaik
(Querist) 06 November 2011
thank you very much for your kind reply
