JAIIB 2020 Study Material: Limitation Act, 1963 | Law of Limitation

JAIIB 2020– Download the study material on Law of Limitation for the upcoming JAIIB 2020 exam. If you are a member of IIBF then you must appear for Junior Associate of the Indian Institute of Bankers (JAIIB) 2020 Exam in May as it can boost your career. Though the last date to apply was 1st March,2020 but you can still apply till 15th March with a nominal late fee of Rs.100 and after 15th March till 22rd March,2020 with a nominal late fee of Rs.200.

JAIIB Exam: May 2020

Examination Date Time Subject
3rd May 2020 ONLINE – Will be given in the admit Letter Principles & Practices of Banking
10th May 2020 ONLINE – Will be given in the admit Letter Accounting & Finance for Bankers
17th May 2020 ONLINE – Will be given in the admit Letter Legal & Regulatory Aspects of Banking

Limitation of Documents

  • Law relating to limitation is contained in the Limitation Act, 1963.
  • It is the time limit within which legal action can be file in a court of law to enforce the right.

Period of limitation:

  • The limitation period bars the remedy of filing a suit but does not take away the right of recovering the debt
  • There is no limitation period in case of pledge or lien or right of set-off.
  • Date of execution of a document is excluded for the purpose of calculation of limitation period of a document.
  • A suit based on Demand Promissory Note dated 04.02.2017 can be filed latest by 04.02.2020.
  • If the courts are closed on the day the limitation period expires, case can be filed on the day the court reopens.
  • During the calculation of limitation period, that period will be excluded when executant was out of India.
  • Mentioned period of limitation cannot be extended or waived by mutual agreement.
  • Bankers’s right of general lien, right of set-off or sale of pledged goods  is not effected by law of limitation.
  • Right of suing to the borrower in his personal capacity can be executed within mentioned limitation period.
  • Limitation period can be extended by acknowledgement of debt or part payment.
  • For limitation period extension, acknowledgement or part payment can be by the borrower or his authorized person.
  • It should be before expiration of limitation period.
  • If limitation period expired it cannot be extend by part payment or acknowledgment.
  • Stamped aknowledgement of document does not extend the limitation period aganist the gurantor automatically

Limitation of Documents

Instrument Limitation
Demand Promissory Note 3 years from the date of execution
Bill of Exchange payable at a fixed time after date 3 years when the bill falls due
Term loan agreement with repayment schedule 3 years  from the date when the default occurs
To enforce payment of money secured by a mortgage 12 years from the date when the money becomes due
Suit by mortgagee for possession of immovable property   12 years from the date when the mortgagee becomes entitled to properly mortgaged
Letter of Guarantee 3 years from the date of determination of guarantee
Right of foreclosure by mortgagee 30 years from date when money secured becomes due
Execution of decree 12 years from the date of decree
Recovery of loss caused by fraud 3 years from date of detection of fraud
Appeal to file in High Court against judgment of lower court 90 days from date of decree
Appeal to file in other court against judgment of lower court 30 days from date of decree
Money paid by oversight in excess (SB/CD a/c) 3 years from date of discovery of mistake

Join Live Batches to Prepare for JAIIB Exams: