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Basavaraj (Asst, Manager-Legal)     06 July 2010

Can I civil suit for recovery?

Dear Learned Members,

I seek urgent advise, please


What is the time limit to file civil suit (money recovery)?

I’m working in Pharma Ltd Company and it has old outstanding from 2004-2007 with the parties.

Now my company asking me to send demand notice to old parties to recover  the outstanding , already for some parties I sent demand notice on 01-07-10 (pervious to this demand notice sent was 01-12-2009).

My question is when is the time limit will commence,

whether (1)from the date of demand notice? or (2) from the date of last invoice? (3) from the date of last transaction?




 16 Replies

Daksh (Student)     06 July 2010

Dear Basavraj,

The limitation period for filing a civil suit is three year.

Best Regards


R.Ranganathan (Advocate)     06 July 2010

Generally as per the limitation Act, the period of limitation for recovery of money is 3 years. But the period to be ascertained i.e. the calculations vary. If there is any payment then, the period of limitation starts from the last date of payment. Likewise if there is any acknowledgement of debt by the party concerned then also the period of limitation is reckoned from the date of acknowledgement.  

Devajyoti Barman (Advocate)     06 July 2010

Yes three years from the  date of last acknowledgement of debt.

advocate jain (advocate)     06 July 2010

3 years

Basavaraj (Asst, Manager-Legal)     07 July 2010

Dear Raganathan,

I want further clarification exmaple we have some old distributors and they having runing account with us. In 2005 they have stopped the business with us from the year 2005 they were promising to pay the amount, finally we sent demand notice on 26-12-2009.

Please let me know whether cause of action will arise from the date of legal/demand notice or from the date of last Invoice.

If last invoice means time limit has already over, so what will be the remady for me whether can i file delay condonation application. Does this allow?

Please advise urgently.



for filing civil suit for recovering money  the time limit is 3 years

limitation starts frm the cause of action for every cause of action under the same action it will extend up to 3 years.

by giving demand notice the limitation wont extend.

if he acknowledges the debt then the limitation extentd for another 3 years.

R.Ranganathan (Advocate)     07 July 2010

Mr. Basavaraj,

The limitation extends only if the defaultor has either paid some amount or acknowledged in writing his debts and agrees to pay the same. In your case though the business has come to an end in 2005, if your debtors acknowledge the dues in writing and agree to pay the amounts then the limitation will start from that date.

Even a time barred debt can be recovered if the debtor undertakes and agrees to pay the same in writing.


Vinod kashyap (Advocate & Legal advisor)     07 July 2010

Limitation started from last transaction if there is continue transaction. court can not condone the dealy in filling of civil suit which is barred by the law.

Ashok. B.V. (Executive-Legal)     07 July 2010

Dear Basav Raj

limitation starts from the  date of latest  invoice. Thereafter you have to confirm that there is no further correspondence between the parties. in case if the debtor confirms his debt then the limitation starts from that date.

N.K.Assumi (Advocate)     07 July 2010

For money suits the statue of limitation fixed 3 years and any acknowledgement must be within that period of theree years and acknowledgement made after 3 years will not revive the limitation period.However, in case the suit is barred by limitation you can resort to section 25 of the Indian Contract act: that is make him promise to pay time barred debt. For details refer to section 25 ICA.

Uma parameswaran (lawyer)     08 July 2010

A small amount of payment from the debtor is enough to start the new limitation period.

Basavaraj (Asst, Manager-Legal)     09 July 2010

Dear ASSUMI & uMA Parameswaram, thanks for your feedback and just hepl me out from any judgment realted to your feedback and my question.

R.Ranganathan (Advocate)     09 July 2010

Mr. Basavaraj,

Almost all the cases filed by Banks are of the above type. Either there is payment every three years or else the debtor has acknowledged the debts within the said period of three years. So the limitation starts from the date of payment or the acknowledgement date and is upto 3 years from that date.

Basavaraj (Asst, Manager-Legal)     15 July 2010

Thanks to all my leanred members.

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