Limitation aspects

LIMITATION ASPECTS
1. Law of Limitation bars only the right and not the remedy (for eg. right to sell the seized goods,
pledged goods, right of set off etc Can be resorted to in time barred accounts)
2. The number of times the AOD can be obtained from the borrower without getting a fresh set of
documents is No such stipulation
3. Limitation period for applying for final decree Three years (from the date given/expiry of time
given) in the preliminary decree
4. The limitation period in the case of guarantees obtained by the bank from the borrower is:
is not renewed
5. AOD obtained after expiry of pronote - Not valid

6. The Limitation period in the case of a loan backed by mortgage is 12 years from the mortgage
money falling due
7. The Limitation period for enforcement of guarantee is 3 years from the expiry date or demand or
revocation.
8. When different persons have executed the documents on different dates, following date will be
reckoned for computation of limitation The date of first execution.
9. The period of limitation for execution of a decree is 12 years from the date of decree becoming
executable
10.A bill of exchange is discounted to our customer who is the drawer of the bill. The bill is returned
by the collecting banker for the reason ―Payment not forthcoming. The party has not provided funds
for recovering the dues. To save Limitation AOD is to be obtained from the drawer and the drawee.
11. In the case of gold loan, to save limitation for filing suit, we have to obtain: Letter of revival
unstamped.