Promissory note
Prasanna Shivaram Barve
(Querist) 05 May 2010
This query is : Resolved
Sir,
I am working in a Co-operative credit society in Goa. We have a promisory note way back in 1995 from a borrower and surety. Loan taken by the borrower was for 36 months. Can we file a suit against the borrower to recover the money with help of the promissory note? proforma of promissory note is as follows:
Rs. 50000 Dated: 29.10.1995
ON DEMAND, I/We ________ jointly and severally promise to pay ______ (Societies name) or order_____________ the sum of rupees fifty thousand only for value received with interest thereon at the rate of 16 percent per annum from this date until the date of payment in full plus penal interest at the reat of 2% from the date of default until the date of payment in full.
Signature
Kindly advice in this regards, considering the fact of time barr limit of promissory note.
Yours,
Prasanna Shivaram Barve
A V Vishal
(Expert) 05 May 2010
You have not stated the facts completely. Even though a Pro-note is barred under limitation after 3 years, however if the drawer acknowledges the debt it becomes live alternately if the borrower has made any payment against the pro-note in recent times then the account can be said to be live. However, from your query it appears there is no transaction in the account which makes the debt barred by limitation and needs to be written off as a bad debt.
R.R. KRISHNAA
(Expert) 05 May 2010
I think I have a judgment on this issue that even time barred debt can be recovered. I will give the judgment tomorrow.
Prasanna Shivaram Barve
(Querist) 09 May 2010
Hi,
Thanks A.V. Vishal, R.R. Krishna and Arvinthan for your kind replies.
Since the loan has been default or for that matter there are no transactions from 31.03.1997. Only interest is capitalised on the account. NPA was applied to us from 2004. After April 2004 no interest is capitalised on this account. Balance remains as it is as on 31.03.2004.
Are we left with only options to write off the said loan ?
No legal procedure can be followed?
Please help.
Yours,
Prasanna Shivaram Barve
