The normal limitation period for filing suit for recovery of a debt / loan is 3 years. However, in your case, as late as in June 2015, the other party has made a part-payment of (Rs. 1 lakh) the loan. Therefore, in accordance with Section 19 of the Limitation Act, 1963, a fresh limitation period starts running from the time when such part payment was made. Therefore, the limitation for filing suit for recovery of this loan would now be up to June 2018.
Section 19 of the Limitation Act is reproduced below:
“19. Effect of payment on account of debt or of interest on legacy.—Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly authorised in this behalf, a fresh period of limitation shall be computed from the time when the payment was made:
Provided that, save in the case of payment of interest made before the 1st day of January, 1928, an acknowledgment of the payment appears in the handwriting of, or in a writing signed by, the person making the payment.
Explanation.—For the purposes of this section,—
(a) where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment.
(b) “debt” does not include money payable under a decree or order of a court.”
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
.
