LawRato

Bank asking for 800 rs due on a loan fully paid 13 years ago


23-Jan-2026 (In Recovery Law)
Want clear opinion on how the bank can do this after 3 years? Limitation act applies and the bank cannot do this. Correct?
Answers (1)

Answer #1
955 votes
Under the Limitation Act, 1963, a bank generally has three years to initiate recovery proceedings from the date of default or from the date the account is classified as NPA. However, this limitation period can be extended if there is an acknowledgment of debt, part payment, revival letter, balance confirmation, or OTS proposal signed by the borrower. In such cases, a fresh limitation period starts from the date of acknowledgment. Therefore, recovery action after three years is not automatically illegal and depends on whether limitation has been validly extended by the borrower’s acts or documents.
Helpful? LawRato LawRato
Advocate Hemalatha Narayanan

Adv. Hemalatha Narayanan

LawRato Chennai | 100+ Answers
Chat with Advocate Hemalatha Narayanan Chat 

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Recovery lawyers for your specific legal issue
Connect with a Lawyer
Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

LawRato