Period of Limitation in case of a bank guarantee in favour of Govt Depts
R. Padmanabhan
(Querist) 24 December 2010
This query is : Resolved
I came across a news report that the limitation period for filing a suit by the government dept against the bank which issued a guarantee for one of their clients is now 30 years from the date of claim. Earlier this was 3 years. Want to know if this is correct. Also want to know if the beneficiary can claim beyond the expiry date of the guarantee.
Khaleel Ahmed Mohammed
(Expert) 24 December 2010
There is no special provission regarding the 30 years time limit for Government Dept in law of limitation.
Bhumik Dave
(Expert) 24 December 2010
Mr. Khaleel is right
Murali Krishna
(Expert) 24 December 2010
I am very sorry to disagree with Mr.Khaleel Ahmed and other concurrents.
Supreme Court in many judgements held that Government departments has 30 years of time limit for filing suit against private persons. Recently in R.Hanumaiah V.State Of Karnataka [(2010)5 SCC 203, Supreme court explained the rationale for such differentiation under Art.112, 64 & 65. Of course, same is with regard to Land matter.
Gulshan Tanwar
(Expert) 29 December 2010
Limitation period for Land matters for Government is 30 years whereas for Private Individuals is 12 years and the Limitation period starts from the date of refusal and not from the date of occupation, remember this thing also, as many takes the date of occupation for limitation whereas the date of occupation is meant for defence for Adverse Possession and not for recovery of dues/ mesne profits etc.
