Demand for time barred debt
Harsh Katara
(Querist) 21 September 2011
This query is : Resolved
My father had taken loan from GE money qround 7-8 years back & was paying EMI regularly but due to floods in year 2006 he could not pay due to heavy losses & also wrote to Bank about the said loss & they did co-operated for delayed payment. As further our financial position did not improve still so my father sought another loan from ICICI & ICICI closed that loan a/c by paying the entire dues & rest was sanctioned as loan to my father but still some penal charges were left so they came home & collected that charges also & since then no cheques of EMI were enchased in Bank.
And today after 4 years been elasped & they called my father stating that he has outstanding of Rs.4000 still to pay & if he does not pay then will be rs.9000/- & also stated that bank has right to recall money anytym they want & further he said we haven't yet gave you NOC so he is demanding & threatning.
As far as i know that if debt becomes time barred it becomes unenforceable as 3 years has already elasped & further loan has been already re-paid so in such sceneraio what should my father do?? please help...& reply soon
ajay sethi
(Expert) 21 September 2011
claim is barred by limitation .
Guest
(Expert) 21 September 2011
You must be having monthly bank statement about repayment of loan. You can see what the last statement points out about the loan. You can also ask for the detailed statement of loan payments and balances. From there you can know what is the actual position. Even otherwise also the time barred claim is not maintainable.
If any recovery agent, other than the bank, has called your father to his office, the recovery agent would be pursuing the case just for earning commission out of that recovery.
Raj Kumar Makkad
(Expert) 21 September 2011
time barred debt unless renewed by you cannot be recovered by bank.
Harsh Katara
(Querist) 22 September 2011
Thanks for the reply all the above respected experts. Now just one question the person contacting my father knows that loan is closed & we do have bank statemtnt in which after the last cheque been encased no other cheques have been passed in Bank since then, but how to convice the person calling because he is just agent maybe & just sticking to what he says.
M V Gupta
(Expert) 23 September 2011
No claim can be made after expiry of three years. Do not enter into any correspondence with the agent or the Bank. Refuse to have any dialogue on the issue and take consistent stand that you have paid the loan amount long time ago. If the Bank or the agent writes to you in the matter better consult your advocate while replying.
Guest
(Expert) 23 September 2011
Dear Katara,
Now a days, even the employees of the agents just make a phone call stating that they are contactin on behalf of the bank. When asked whether the calling person is employee of the bank, he just try to evade to tell that he is not an employee of the bank.
About your case, you may ask the agent to show his identity proof, get a copy of that, also ask for the Bank dues statment. Definitely he won't be able to produce the bank dues statement. If he still insists you may also ask him to file a case of recovery through court and get decree. He would definitely ask you come to some mutual terms just to earn his hefty commission on a closed case.
But, if he still tries to harass your father, just call the police and hand him over.
Sudhir Kumar, Advocate
(Expert) 19 March 2013
But in case your father has in any conversation on phone (which they record) admitted the debt then limitation is revived.
But no bank will litigate for paltry sum.
prabhakar singh
(Expert) 19 March 2013
Q.As far as i know that if debt becomes time barred it becomes unenforceable as 3 years has already elapsed & further loan has been already re-paid so in such scenario what should my father do??
A.your father should stay cool being rest assured.Nothing to bother.
@**@#$%^&*@#$%^&*()@#$^^**()^^%%#@@%%^&&**((
THERE ARE PROVISIONS LAID IN SECTIONS 18,19 AND 20 ABOUT RENEWAL AND REVIVAL OF TIME OF LIMITATION.
UNDER S.18 PERIOD GETS EXTENSION WHEN PRINCIPAL DEBTOR HIMSELF ACKNOWLEDGE THE
DEBT in writing,with in period of limitation.IT CAN ALSO BE DONE BY HIS DULY AUTHORIZED AGENT U/S 20.
UNDER S.19 LIMITATION GETS EXTENDED IF ANY PAYMENT OF PART OF LEGACY OR ITS'INTEREST
IS PAID BY PRINCIPAL DEBTOR.THE SAME EFFECTS TAKES PLACE IF IT IS PAID BY AGENT AS LAID IN S.20.
Then point to drive home is that audio video devices, though acceptable as evidence,even if successfully used against debtor ,can not enlarge prescribed period of limitation,unless section 18,19,and 20 are amended to incorporate them too as a way to acknowledge a debt.
Advocate Bhartesh goyal
(Expert) 21 September 2011
