CAIIB · BRBL

LAW OF LIMITATION

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What is the primary legislation governing the law of limitation in India?

A

The Limitation Act, 1963 is the primary legislation that prescribes time limits within which legal proceedings must be initiated in India.

Q

What is the limitation period for a suit to recover money due on a bond?

A

12 years from the date the bond becomes due.

Q

What is the limitation period for a suit on a promissory note payable on demand?

A

The limitation period for a suit on a promissory note payable on demand is 3 years from the date of the instrument.

Q

What is the limitation period for a suit based on a written contract?

A

3 years from the date the right to sue accrues.

Q

What is the limitation period for enforcing a decree passed by a civil court?

A

A decree passed by a civil court can be enforced within 12 years from the date the decree becomes enforceable.

Q

Under the Limitation Act, what is the limitation period for a suit on a dishonoured cheque?

A

3 years from the date of dishonour.

Q

What is the limitation period for a suit to recover money lent under a simple money loan agreement?

A

The limitation period for recovering money lent under a simple loan agreement is 3 years from the date the loan becomes due and payable.

Q

What is the limitation period for a bank to file a suit for recovery of a term loan?

A

3 years from the date the loan becomes due.

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