We all lent money to your friends and relatives sometimes. It may have happened that the borrower has not returned the money to you on time or refused to give it. If someone refuses to return your given money, then you can file a case in court and take action to get the money. But, this also has a time limit.
What the rule says
According to Supreme Court rule, if you have lent money to someone and the person has refused to return the money, then you have three years to take action. After this law cannot help you get back your lending money. If he or she refuses to repay the rest of the rupee or takes time, then from the last payment date to three years, then you can put a case of recovery of money in the civil court.
If the lender does not file a recovery case within three years, then the right to recover his money will be over. Under the Suit of Recovery of the Law of Limitation Act, 1963, given in the Indian Law Code, the case must be filed with the other party for the last three years from the date of the last instalment.
The law applies to everyone
This law will apply to any person, bank and all financial institutions. If the bank has given a loan to a person and the person is unable to pay the loan, the bank can register a recovery case anytime from the date of the last transaction to three years. Under this law, any party can register a case of recovering money from any party.
You can claim damages too
Suppose that the lender was unable to pay any major payment to the lender by refunding the money from time to time, due to which he suffered a financial loss, he could also claim to compensate for the loss. According to the Law of Limitation Act, when lending the case of recovery, the lender can demand interest on his original amount.
Also, if he has no financial loss due to not getting the money in time, he can ask for the amount to compensate for that loss. That is, you can claim by adding interest and your financial loss in the amount you have lent.
Court will give the last decision
Once you file a case, it will be the responsibility of the court to decide whether you will get the money back or not. And if you get your money back, how much will it get and how long will it get. This action will be carried out in accordance with the rules of the court, in which both the parties will be hearing and after this, the court will decide its decision.