Law of Limitation- Period of Limitation for Suit

The law of limitation prescribes the period within which existing rights can be enforced in a court of law.

The object of the limitation act is to prescribe the period within which the existing right can be enforced in the court of law.

Period of Limitation for Suit:

(a) The period of limitation for filing suit for recovery of money lent under a Demand Promissory Note is three years from the date of execution of documentation.

The DP Note may not be accompanied by the security way of pledge or at date of disbursement or balance confirmation.
If the amount is recoverable on the basis of bill of exchange or promissory note payable at a fixed time after date the period of limitation is from the date of when the bill / promissory note falls
If investment is on a bond where no date is specified for payment, a suit has to be filed with in three years from the date of execution of the bond.
If a bill of exchange is payable at sight or after sight but no fixed time, the limitation is three years from the date when the bill is presented.
If an investment is made on a mortgage of immovable property or other wise secured by a charge upon immovable property & money is payable by the mortgager on demand or no installment are agreed to , the banker must file suit with in twelve years from the date of the mortgages deed.
If the mortgage money is payable by installments and the mortgage deed provided that if default is made in payment of one or more installment the whole amount shall be fall overdue. The period of limitation is twelve years from the date when default is made in respect of which there is no such waiver.
If the Banker wants a decree against mortgager, the banker will have to file suit with in three years of the execution of the mortgage deed or the date of default, as the case may be.

Article wise period of limitation:

No of Articles	Description of Suit	Period of limitation	Time from which period begins to run & remarks
57	For money payable for money lent	3- years	When the investment is made
57	Like suit when the lender has given a cheque for the money	3- years	When the cheque is paid
59	For money lent under an agreement that is shall be payable on demand	3- years	When the investment is made
60	For money deposited under an agreement that is shall be payable on demand, including money of the customers to payable in the hands of his banker	3- years	When the demand is made
66	On a single bond, where a day is specified for payment	3- years	The day is specified
67	On a single bond, where no such day is specified.	3- years	The date of execution of the bond
69	On a bill of exchange or promissory note payable at a fixed time after date	3- years	When the bill or bond falls due.
70	On a bill of exchange at sight or after sight, but not at a fixed time.	3- years	When the bill is presented.
71	On a bill of exchange accepted payable at a particular place.	3- years	When the bill is presented at that place
72	On a bill of exchange or promissory note payable at a fixed time after sight or after demand.	3- years	When the fixed time expired.
74	On a promissory or bond, payable by installment.	3- years	The expiration of the first term of payment, as to the part then payable: & for the other parts the expiration of the respective terms of payment
75	On a single bond , where a day is specified for payment On a single bond where a day is specified for payment	3- years	When the default is made unless where the payee or oblige waives the benefit of the provision & when fresh default is made in respect of which there is no such waiver.
78	Which the payee against the drawer of a bill of exchange has dishonored by non-acceptance.	3- years	The date of the refusal to accept.
81	By surety against the principal debtor.	3- years	When the surety pay the creditor
85	For the balance due on a mutual, open a current account, where there have been reciprocal demands between the parties.	3- years	The close of the year in the last item admitted or is entered in the account, year to be computed as in the account.
132	To enforce payment of money secured by a mortgaged or otherwise charged upon immovable property	12- years	When the money sued for becomes due, a suit on a simple mortgage deed to enforce payment of money due of the bond, by the sale of mortgaged property is governed by this article to attract the application of this article, the money must be effectively charged on the immovable property.
144	For possession of immovable property or any interest there in based on title	12- years	When the possession of the defendant becomes adverse to the plaintiff.
145	To recover movable property deposited or pawned from a deposited or pawned from a depository or Pawnee.	30- years	The date of the demand.
148	Against a mortgage to redeem or to recover possession of immovable property mortgaged	60- years	When the right to redeem or to recover possession accrues due.

Extension of period of limitation – General:

The limitation can be extended / saved by the acts of the client in any of the following three ways:

(a)

Fresh documentation

If the client executes a fresh promissory note or new bond etc for the old debt the limit is automatically extended from the date of fresh documentation. The documents may even be executed after the period of limitation has expired.

(b)

Acknowledgement

The limitation for filing a suit or an application in respect of any property or right can also be executed by an acknowledgement. The acknowledgement has to be in writing, signed by the party against whom the liability is sought to be enforced or by his duly authorized agent across the requisite revenue stamp, before the expiry of the prescribed period of limitation.

(c)

Part- Payment

Part payment of a debt or interest can also extend the period of limitation, provided the borrower or his duly authorized agent under his signature has authenticated such payment. The part payment should also have been made before the expiry of the prescribed period of limitation.

The period of limitation in any account must therefore, be watched from time to time. Every Bank should have on limitation register. Whenever any documents are executed by the investment client, they are entering into it, besides security register. It serves the purpose of dairy. The limitation register or the limitation dairy is maintained according to the date of limitation.

While obtaining fresh documents from the client in renewal of the original , the banker should obtain a ‘Link Letter’ or a ‘connecting Letter’ from the client.

Waiver of limitation:

The parties cannot, by agreement, expressed or by implied, extend or alter the period of limitations laid down by law. It is also not possible for them to waive limitation by agreement. An agreement not to raise the plea of limitation in cases a suit/ application / appeal is inoperative & ineffective.

STAMP ACT:

Stamp Act was implemented first 1899 for the provisional collection of taxes and lastly amendment in the year 1998 with effect from July-01,1998. Stamp needs to be executed for creation of charge in several documents. There are 4- categories of Stamps:

Judicial Stamp- Used for court
Non-Judicial Stamp – It is printed in a specialized paper having of several value, used for contract, mortgage, sale contract, etc.

Adhesive stamp- Having adhesive on the back side. Revenue stamp, postal stamp are of that category

Impressed or Embossed Stamp – Used by Notary public, in collectorate office for pledge letter, Lien letter, letter of guarantee etc

As per the clause –12, adhesive stamp must be cancelled at the time of affixing the same and with out cancellation document will be treated as stampless. The vender / beneficiary of the stamp can cancel the stamp by affixing / writing ‘Cancelled’ along with date and signature.

But it is observed from the branch record that stamps are not executed in related documents as per Stamp Act mentioned above, which may hamper the Bank’s interest and as well as may cause for financial loss.

As per schedule –1 stamp duty on instruments, the type of stamp is to be affixed in instruments are given below:

Schedule of Stamp Duty on instruments with ref. to amendment- 1998 w.e.f. 01.07.98

Sl.	Description	Stamp Act Reference	Stamp Duty
01.	Demand Promissory Notes (i) Up to Tk. 1,000/- (ii) AboveTk.1,000/- but not exceeding Tk. 5000/- (iii) Above Tk 5000/-	Article 49 Schedule –1 Section-2(22)	Tk. 5/- Tk.10/- Tk.20/-
02.	Letter of Credit Application & Agreement Memorandum of an Agreement	Article 5(c) Schedule -1	Tk.150/-
03.	Letter of Hypothecation	Article 5(c) Schedule -1	Tk.150/-
04.	Cancellation of any instrument	Article -17	Tk.150/-
04.	Letter of Pledges	As a matter of Practice	Tk150/-
06.	Letter of Undertaking not to create any further charge over property etc.	Article 5(c) Schedule-1-A	Tk.150/-
07.	Agreement for Bill Purchase	Article 5(c) Schedule -1-A	Tk.150/-
07.	Letter of Guarantee	Article 5(c) Schedule -1-A	Tk.150/-
09.a	Power of Attorney for procuring Registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documents (48.a)	Article-48 Sec-2(21)	Tk.50/-
09.b	Power of attorney authorizing to act in a single transaction other than mentioned above(48.b)	Article-48 Sec-2(21)	Tk.100/-
09.c	Power of attorney authorizing to act in a single transaction other than mentioned above(48.c)	Article-48 Sec-2(21)	Tk.200/-
09.d	Power of attorney authorizing to act in a single transaction other than mentioned above(48.b)	Article-48 Sec-2(21)	Tk.400/-

10. Bill of Lading – Article 14, of schedule -1 of stamp act,1998

10.a

When the value drawn but not exceed Tk.5,000/-

Tk.20/-

10.b

When exceeds Tk. 5000/- but not exceeding Tk.50,000/-

Tk.50/-

10.c

When exceeds Tk.50,000/-

Tk.200/-

If a bill of lading is drawn in parts, the proper stamp there for must be must be borne by each of the set

Bill of Exchange

Where payable otherwise than on demand but not more than one Year after date or sight (Article 13. Section 2(2) of schedule -1 of stamp act,1998)

Amount of Bill

Proper Stamp Duty

If drawn Singly

If drawn in set of two, for each part of the set

If drawn in set of three, for each part of the set

Irrespective of consideration value

0.2%

0.1%

0.07%

Where payable at more than one year after date of sight

(Article 13. Section 2(2) of schedule -1 of stamp act, 1998)

Amount of Bill

Proper Stamp Duty

If drawn singly

If drawn in set of two, for each part of the set

If drawn in set of three, for each part of the set

Irrespective of consideration value

Article 6(2) of schedule- 1. Stamp Act-1998, Description of Instrument

If loan or debt is repayable on demand or more than three months from the date of such instrument evidencing the agreement

Amount of Loan or Debt

Proper Stamp Duty

If drawn singly

If drawn in set of two, for each part of the set

If drawn in set of three, for each part of the set

Irrespective of consideration value

0.5%

0.25%

0.12%

If loan or debt is repayable not more than three months from the date of such instrument evidencing the agreement

Amount of Loan or Debt

Proper Stamp Duty

If drawn singly

If drawn in set of two, for each part of the set

If drawn in set of three, for each part of the set

Irrespective of consideration value

0.3%

0.15%

0.08%

My others Websites:

www.bankingallinfo.com
www.importexportall.com
www.bdjobshelp.com

Law of Limitation- Period of Limitation for Suit

Period of Limitation for Suit:

No of

Waiver of limitation:

10. Bill of Lading – Article 14, of schedule -1 of stamp act,1998

Follow us: