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Hemant kaushik (Mr.)     05 December 2009

Recovery letter

What is mortgage revival letter ? (which comes in 3 years)

if some one has mortgaged his land through Equitable Mortgage and guaranteed someone others'  loan and he refuses to sign the revival letter after first three years then question is - can bank recover the loan from the guarantor ?


 8 Replies

Adv Archana Deshmukh (Practicing Advocate)     05 December 2009

The period of limitation for recovery of money is 3 years. The revival letter is taken by the bank in order to bring the recovery of the debt within limitation. A fresh limitation period of 3 years starts running when the revival letter is signed by the debtor / guarantor. 

N.K.Assumi (Advocate)     05 December 2009


N.K.Assumi (Advocate)     05 December 2009

But revival letter should be within the limitation period.

Poonam Upadhyay pathak (Advocate)     05 December 2009

I do agree with above opinions.

Hemant kaushik (Mr.)     06 December 2009

Thanks for reply !!

is that means that Bank can not recover from guaranter who has not signed on revival letter?

Adv Archana Deshmukh (Practicing Advocate)     06 December 2009

 Yes,  after the expiry of the initial limitation period, the Bank can not recover from guarantor who has not signed on the revival letter.

Hemant kaushik (Mr.)     06 December 2009

Thanks for reply !!

this is what i was expecting... thanks

suryagaurav (manager)     24 March 2018

    Personal loan by NBFC has been issued on year March 2008. No amount received till april 2016. Notices are sent every month, and defaulter person receiving the notices.After that he paid some amount in april 2016. can we initiate recovery proceeding now ?

whether limitation will affect the matter or not?

please guide

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