Law of limitation in odisha for bank loan ( agreement & pronote )
Ashok Kumar Adhikary
(Querist) 29 January 2013
This query is : Resolved
Dear Expert Advocates,
As I am working in a Nationalized Bank, it is my duty to know the law of limitations for a loan account. I am citing a case, please let me know the legal options for a banker and a borrower in this particular case.
Date of loan agreement : 24.03.2006
Date of personal loan application:24.03.2006
Bank's notice dt.13.07.2011 to clear the loan.
Advocate's notice dt.25.09.2012 to repay the loan.
Borrower's sb a/c debited on 19.02.2010 & credited to his loan a/c without his knowledge.
One installment of 2850 credited to loan a/c through ECS clearing on 16.03.2012 again without borrower's knowledge.
1. Now, my query is, if bank files a suit in civil court against the borrower, whether bank is in order as per the limitation law ?
2. What will be possible legal options for borrower to defend him as far as the limitation law is concerned ?
Kindly, answer and elaborate.
Awaiting your valuable opinion....
Thanks...
ajay sethi
(Expert) 29 January 2013
has the borrower authorised bank to debit his saving account and credit his loan account in 2010 ? when was last payment made by borrower?
the contention of borrower would be that claim is barred by limitation . no autjhorisation has been given to debit hsi saving bank account .
has borrower addressed any letter objecting to such debit ?
Ashok Kumar Adhikary
(Querist) 29 January 2013
No,he has not authorized.
On 12.10.2008 last installment by cheque in clearing.
No, he has not addressed any letter of objection.
Raj Kumar Makkad
(Expert) 30 January 2013
In my view the loan is time barred. There is no renewal of the loan within 3 years of the disbursement of the loan by laonee. The unauthorized transfer of installment by banker from his account to his loan account is not an evidence to show that the loanee got it renewed during the year 2010 or second time on 2012.
The bank legally cannot recover the loan in the given facts. The whole exercise is futile on the part of the bank. The loan might have been renewed/confirmed by loanee within 3 years which might have enhanced its validity for further 3 years.
ajay sethi
(Expert) 30 January 2013
it is an interesting case . the contention of borrower would be that loan is barred by limitation . that bank has inorder to save limitation debited saving account and transferred funds in loan account .
