suryagaurav (manager) 16 May 2011

recovery suit cause of action query

sir,

for filing suit of recovery the limitation period is 6 years as per CPC.

now a concern provides loan to its customers in jan 2010 and make 20 monthly installments.

customer pays 12 installments monthly means last instalment he paid on dec.2010.

I am confused from when time period for limitation will be counted.

from dec 2010 or jan.2010.

pls guide me,

thanx

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2 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR) 16 May 2011

as next installment is due on jan - 2011 and further correcting your query as limitation will be counted from unapid installment as you cannot sue for recovered money.

in this case it has tobe dec. 10 but as it is paid off it is to be counted from jan-2011 as per contract or loan agreement customer has not paid after dec.2010 therefore limitation to be counted from jan-2011.

hope have resolved your querry

regards

pervez (adviser) 16 May 2011

Dear, The limitation is governed under The Limitation Act 1963 and not under CPC..

Period as prescribed in Schedule to the LIMITATION Act –

The period has been prescribed in Schedule to the Limitation Act. Generally, it is as follows – (a) 3 years for a suit relating to accounts, contracts, declarations, decrees, suits relating to movable property, recovery of law suit under a contract etc. (b) 12 years for suits relating to possession of immovable property and 30 years for mortgaged property (c) One year for suit relating to torts (3 years for compensation in certain cases (d) 30 to 90 days in case of appeals under Civil Procedure Code and Criminal Procedure Code. - - Period of filing appeal and application can be extended if proper cause is shown (but not the suit) [section 5].

Regards