Section 62 of the Statute of Limitations of 1963 (Prescription Act) imposes a statute of limitations for a fair mortgage, i.e. 12 years. A pertinent question recently before the National Company Law Appellate Tribunal (NCLAT) in relation to the case of Mr. Harsubhai P. Lakkad Vs. Bank of Baroda Company Appeal (AT) (Bankruptcy) No. 32 of 2020 Order of 12.03.2020, that is, a statute of limitations under the Insolvency Act, 2016 by India (IBC or Code) in cases of fair mortgages created by the creditor against the company`s debtor, in order to secure its debts (question Mo). During the decryption, Mr. NCLAT debated several judgments rendered by himself and the Indian Supreme Court. 02. In wreas facts of the case are that the candidate bank is a public corporation incorporated under the Corporations Act 1956 and a banking company within the meaning of the Banking Regulation Act 1949.
The defendant has filed an application to install a vehicle for the purchase of a Swaraj Majda Bus 19-1, model/make: Euro II, carrier engine no SLIGS85876, chasis no SGWEL4GM0092574 and, according to the prescribed procedure, a loan of 7.42,000 R. was sanctioned and distributed to the defendant. LVNAG000012304522. The terms of sanction were accepted by the defendant and the defendant executed documents such as the loan application form, the loan contract and the signature. The above-mentioned term loan facility is 14.10% per annum in the event of a monthly rest. In order to secure the aforementioned loan, the defendant suspected the aforementioned commercial vehicle, purchased by customer Mangesh Thute, by a credit of 7.42,000 ru. / – from ICICI Bank. The details of the vehicle are shown in the calendar attached to the O.O. The loan facility in question should be repaid from 5.02.2008 to 05.12.2011 by an EMI of 15,224 ru.
20,789 Rs per month. As a result, the repayment period of the amount of the loan in question was 47 months. The defendant was very erratic in the payment of the payments of the aforementioned loan. The indications of the claim are indicated in point j of the O.A.