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S S ravi (service)     02 July 2012

Limitation- equitable mortgage.

I have made equitable mortgage of  my house in connection with colletral security for my business loan with Nationalised bank in the year 1999. I request members to please explain me in detail about limitation period , bank can file suit .


 7 Replies

Prasun Chandra Das (Banker)     02 July 2012

Limitation for EM is 12 years from the date of creation of EM, if my memory serves me right. But every year you must have signed Acknowledgement of Debt and/or Revival Letter, which effectively has resulted in increasing limitation of EM by another 12 years from the date of execution of AOD/RL. So, if you have last executed AOD/RL in 2012 (say 1st April 2012), limitation for EM is now 12 years from 1st April 2012. Similarly, all other documents executed by you (DP note, agreement for business loan etc) shall have their limitation periods extended for X years from the date of AOD/RL as per their limitation periods.

RAJU O.F., (Advocate)     09 July 2012

The query was answered earlier.

By executing acknowledgement of debt or revival letter, the limitation of 12 year would not be reckoned under equitable mortage.  For extending the period of EM, the title documents are to be released and re-deposited and a memorandum for this purpose to be executed.

narendra.s.p (Chief Manager(Law))     10 July 2012

As per article 60 of the schedule to the Limitation Act, Bank can file suit within 12 years - When the laon becomes due for payment. In case of Cash Credit Loan if the laon is not renewed, it will be date onwhich the sanction terms expire. In case of Term Loan , it will be reconed by taking into account due dates of each installment.

The Limitation period is subject to extension under section 18 & 19 of the Limitation Act.

c.p.s. ramachary (1500)     11 July 2012

For enforcement of mortgage the period of limitation is prescribed as 12 years from the date the debt becomes due according to Art.62 of Limitation Act. This period is saved from time to time by obtaining acknowledgment in writing from  borrowers or on payment of moneys under signature of borrowers. In case of corporate borrowers the limitation is saved on publication of balance sheet. 

1 Like

R.K Nanda (Advocate)     18 July 2012

It is 12 years.

Md. Younus (employee)     01 August 2016


My query is as under:

Mr. X brother of y (bride) had arrange a marriage of y & z.  Up on request of Z, X get release mortgaged house of Z for Rs.3.25 lakhs in the year June 2010.  In a good faith X has not taken any signature of either Z or his father. 

Property is in the name of Z's father's who expired in 2014. 

X has paid the amount to mortgagee and took the mortgage deed from him, which he mark cancel on the face of agreement and wrote as amount received from Mr. X and signed by the mortgagee along with date.  Also X took the original, registered Sale Deed from the mortgagee.

After this the relationship between Y & Z got diturbed and Y filed DVC which has been dismissed.  In this judgement it is mentioned that the amount paid to release the mortgaged property cannot be taken as dowry since it has been paid before three months of the commencement of marriage. 

She filed an appeal, this also got dismissed in 2015. 

Meanwhile Mr. Z divorced X in Dec. 2012.

Till date nothing has been done to recover the amount of Rs.3.25 lakhs. 

The original registered sale deed is with Mr. X which has been taken from mortgagee at the time of paying money.

QTN.  How can Mr. X proceed to recover the amount now.    Kindly guide in detail.




Law Aspire (Legal)     02 September 2016

Revival Letter is to be signed in  every three years for acknowledging the debt.

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