Legal Question in Banking Law in India

We are already proceeding against a person under section 138 of Negotiable Instruments Act for full recovery of loan but the documents are getting time barred on 28.11.09. Should we simultaneously file civil suit for recovery against the borrower. What if we do not file civil suit. In such a case will the limitaion cease on 28-11-09 or it will run


Asked on 11/23/09, 4:19 am

2 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

yes, in case you do not file the civil suit within 3 years, the limitation would run out.

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Answered on 11/23/09, 4:23 am
J. Radhakrishnan independent Practice

For civil suits one has to follow the period provided under the Limitation Act. If the Cheques are of 28/11/2006 or the loan document is of 28/11/2006 which does not provide for instalment repayment after that date, or if no written acknowledgement of the debt or part payment of the debt evidenced in writing by the debtor is there, limitation will not be saved by the pendency of criminal prosecution under Sec.138 of the N.I.Act. Better file the suit within the period of limitation and get a decree which can be executed for a period of 12 years from the date of decree

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Answered on 11/23/09, 4:40 am


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