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Time Limitation In Debt Recovery Matters By Financial Institution
One of my friends (from Delhi) entered into a loan agreement with some financial institution. The loan was not re-paid by my friend. After more than 10 years passed, the finance company referred the matter as a dispute to a sole arbitrator in Mumbai. Notice was received by my friend by post and on receipt of the second notice, my friend replied in writing (through speed post) that subject debt is barred by limitation (Time-barred). The sole arbitrator completely ignored the letter sent by my friend and passed an order without any reference to my friend’s letter. Also, sole arbitrator did not mention the issue stated in the letter regarding the limitation by time. What action shall be taken by my friend?
- Sector-1, Noida
He should file an application under Order 7 rule 11 by sating that the present suit is time-barred by limitation. And even after that if the arbitrator doesn't dismiss the suit he/she moves to the high court or a competent court.
Answered on 20 Oct 2019
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