My mother had a timber saw mill and borrowed Rs.1,49,000 from Assam Financial Corporation (AFC) back in 1984. Saw Mill did not succeed and AFC seized the plant and took all machinaery to recover the loan amount. Since then nothing happened but few months back some people came from AFC to recover the money. Mother got frightended and was pressuirsed by AFC officials when she went to their office and under pressure she wrote a letter to repay Rs 40,000 in installemts as she is pensioner only getting Rs 10,000 a month. They are now saying that Rs 40,000 offer is no longer exisiting so mother has to pay full amount of Rs 97,000 which is an outstanding amount after selling the machinery they took away from us. Now my query is why these people are coming to recover the money after such long period of more than 20 years? Is their case vaild? My mother is a housewife with no other income than my father's pension and my father passed away as well few years back. These Assam Finacial Corporation is AGM is saying that this case does not fall under any time barred limitation as they are not a bank but they are an finacial association.
I would be very grateful if you could give us some advice about the validity of this recoery case. Is this case vaild and we still have to pay AFC the borrowed sum or can we ask for an exemption based on mother's very low income showing incapability to repay the money.