AP Chit funds Act; Liability of Surity; period of limitation

mahesh (Querist) 27 July 2009 This query is : Resolved
I am a surity. the person for whom i have stood as surity is not available. the chit tenure has got over some 4 years back.the suscriber owes around 50 thousand to the company. I want to know what are my liabilites in this case and can i get any benefit of time barred debt provisions.

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A V Vishal (Expert) 27 July 2009
The limitation is 3 years. S 128. of the Indian Contracts Act defines the liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.