Civil Procedure Code (CPC)

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Validity of promissory note

Querist : Anonymous (Querist) 27 July 2021 This query is : Resolved 
Dear experts,

A person has taken loan from his friends and wrote promissory notes for the same.
He passed away recently.
1. Is there a time limit before which lenders should send legal notice to the legal heirs to repay the debts?
2. Is there an expiration date for Promissory notes(assume they are dated 21/08/2020)?
3. What happens if the legal heirs transfer the properties to someone else before the lenders could send the legal notice?
K Rajasekharan (Expert) 27 July 2021
Three years is the limitation period for a Promissory Note. The period starts running from the date of the Note, in normal case.

After the expiration of the period of 3 years no suit can be filed against the person or his legal heirs.
Dr J C Vashista (Expert) 28 July 2021
I concur the advise of expert Mr. K Rajasekharan.
The amount of promissory note has to demanded within 3 years of advancement of loan / execution of promissory note.

All facts are based on assumption and presumption making the query as hypothetical

What is your concern / locus standi to the promissory note ?
Querist : Anonymous (Querist) 28 July 2021
There is a chance that legal heirs may refuse to pay the debts in future.
Is there a time limit to send legal notice to the legal heirs of deceased about the pending debts?
Someone told me that we need to send legal notice to the legal heirs about the pending debts within 30 days of the death of the borrower.
Advocate Bhartesh goyal (Expert) 28 July 2021
Legal notice may be sent within three years from advancement of loan.It is incorrect to say that demand notice should be sent to legal heirs within 30 days of death of borrower.
Querist : Anonymous (Querist) 28 July 2021
Thank you everyone.
So, I need not worry about legal heirs selling the property(I'll not know if they sell it silently)?
How do I handle the situation if the legal heirs sell the properties of the deceased borrower?
Advocate Bhartesh goyal (Expert) 28 July 2021
Serve immediately legal notice to legal heirs of borrower and demand due amount and if notice is not respond then file recovery suit along with petition attachment of properties before judgment u/order 38 rule 5 of CPC and get attached the properties by court so they may not proceed for sell.
Dr J C Vashista (Expert) 29 July 2021
Do not wait for limitation but issue notice immediately as advised by expert Sh. Bhartesh Goyal ji.
Consult and engage a local prudent lawyer for proper analyses of facts/documents, professional advise and necessary proceeding, for any other / further questions / queries.
T. Kalaiselvan, Advocate (Expert) 25 August 2021
I concur with the opinions and suggestions made by various experts above.
You should not delay the process of issuing the legal notice, wait for seven days and file the suit for recovery along with an application to attach the properties lying on his name seeking security to the suit amount invoking the provisions of order 38 Rule 5 for an order to attach the properties before judgment.

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