CAIIB · BRBL

The 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 suits, appeals, and applications must be filed in Indian courts.

Q

What is the limitation period for filing a suit on an open account under the Limitation Act, 1963?

A

Three years from the date of last entry in the account.

Q

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

A

The limitation period is 3 years from the date the promissory note is made, as prescribed under the Limitation Act, 1963.

Q

Under which schedule of the Limitation Act, 1963 are the periods of limitation specified?

A

The First Schedule of the Limitation Act, 1963.

Q

What is the limitation period for recovery of a loan secured by a mortgage?

A

The limitation period for enforcing a mortgage is 12 years from the date the money secured becomes due, under Article 61 of the Limitation Act, 1963.

Q

What is the limitation period for a suit by a beneficiary against a trustee for breach of trust?

A

Three years from the date of knowledge of breach.

Q

What is the effect of acknowledgement of debt on the limitation period?

A

Under Section 18 of the Limitation Act, 1963, a written acknowledgement of debt signed by the party before the limitation period expires results in a fresh limitation period starting from the date of acknowledgement.

Q

What is Section 2(j) of the Limitation Act, 1963 about?

A

It defines 'period of limitation' for a suit, appeal, or application.

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