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Drt recovery OA
What is limitation period from NPA date to filed OA case by Bank ? time'limitation is barred after 3 years?
( Durgapur, West Bengal )
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A.
Dear Client,
OA(Original Application) is filed by the Bank/FI against the borrower under Section 19(2) of the RDB Act, 1993 for recovery of dues to the Bank/ Financial Institution. The limitation period for debt recovery in India is typically three years from the date the cause of action arises, that is the date when a loan is declared bad loan or NPA. However, different types of debts may have different limitation periods. The statute of limitations varies by state and type of debt but typically ranges from 3 to 10 years. Once a debt becomes time-barred, creditors or debt collectors can no longer sue the debtor to enforce repayment unless there is a continued cause of action. Section 19 of the DRT Act enables a bank or a financial institution to recover any debt from any person by making an application under the aforesaid section before the Debt Recovery Tribunal having jurisdiction. A secured creditor may also simultaneously pursue its remedies under the SARFAESI Act 2002 as well as the DRT. For the application of the SARFAESI Act, 2002, the account of the borrower must be classified as a Non-Performing Asset(NPA) by the secured creditor and must have an outstanding balance of INR 100,000 or above.
OA(Original Application) is filed by the Bank/FI against the borrower under Section 19(2) of the RDB Act, 1993 for recovery of dues to the Bank/ Financial Institution. The limitation period for debt recovery in India is typically three years from the date the cause of action arises, that is the date when a loan is declared bad loan or NPA. However, different types of debts may have different limitation periods. The statute of limitations varies by state and type of debt but typically ranges from 3 to 10 years. Once a debt becomes time-barred, creditors or debt collectors can no longer sue the debtor to enforce repayment unless there is a continued cause of action. Section 19 of the DRT Act enables a bank or a financial institution to recover any debt from any person by making an application under the aforesaid section before the Debt Recovery Tribunal having jurisdiction. A secured creditor may also simultaneously pursue its remedies under the SARFAESI Act 2002 as well as the DRT. For the application of the SARFAESI Act, 2002, the account of the borrower must be classified as a Non-Performing Asset(NPA) by the secured creditor and must have an outstanding balance of INR 100,000 or above.
A.
Dear Client,
The Supreme Court observed that Article 22 of the limitation Act,1963 provides limitation for a suit for money deposited under an agreement that it shall be payable on demand, including money of a customer in the hands of his banker so payable. The limitation period of 3 years under Article 22 runs from the date of demand by the depositor. Where an amount paid to the bank by the borrower is not by way of deposit but admittedly under undue influence, Article 113 applies and not Article 22. Different types of loans may have different limitation periods. The contract between the bank and the borrower might contain specific clauses related to the limitation period. The Limitation Act, 1963, and other relevant laws govern the limitation period for different types of cases. We hope that our response is helpful to you.
The Supreme Court observed that Article 22 of the limitation Act,1963 provides limitation for a suit for money deposited under an agreement that it shall be payable on demand, including money of a customer in the hands of his banker so payable. The limitation period of 3 years under Article 22 runs from the date of demand by the depositor. Where an amount paid to the bank by the borrower is not by way of deposit but admittedly under undue influence, Article 113 applies and not Article 22. Different types of loans may have different limitation periods. The contract between the bank and the borrower might contain specific clauses related to the limitation period. The Limitation Act, 1963, and other relevant laws govern the limitation period for different types of cases. We hope that our response is helpful to you.
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