Final Order 4

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: 15 CS SCJ 523/26
CANARA BANK Vs. VINITA
29.05.2026
Matters of 28.05.2026 and 29.05.2026 are being taken together as
28.05.2026 was declared holiday
Present : Ms. Chitra Malhotra, Ld. Counsel for plaintiff
(through VC).
Matter is passed over for 02:00 PM.
(Mayank Mittal)
SCJ-cum-RC, North-West,
Rohini Courts, Delhi/29.05.2026
At 02:00 PM
Present : Ms. Chitra Malhotra, Ld. Counsel for plaintiff
(through VC).
Ld. Counsel for plaintiff has submitted as
acknowledgment of debt could not be recovered, the plaintiff is
not moving application u/o 6 rule 17 CPC.
The present suit is for recovery of sum of Rs.
1,54,603.38/-. On the LDOH, the Ld. Counsel for plaintiff filed
relevant judgment on the maintainability of the present suit and
Ld. Counsel for plaintiff also advanced his submissions on the
maintainability of the present suit.
Heard. Perused.
After perusal of the record, it is found that the
defendant took a loan of Rs. 50,000/- from the plaintiff i.e.
Canara Bank on 28.01.2016. Later the defedant stopped paying
the EMI. The said loan was declared NPA on 28.09.2016. The
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defendant executed an acknowledgment of debt on 27.07.2018.
The defendant further executed another acknowledgment of debt
on 09.07.2023. It is submitted by the counsel for the plaintiff that
the suit is within limitation from the date of second
acknowledgment of debt.
It is noted that section 18 of the Limitation Act,
1963 specifically states that for availing the benefit of section 18,
the acknowledgment of liability in respect of property or right
must be before expiration of the prescribed period of limitation
for a suit. The prescribed period of limitation for the suit of
recovery of money is 3 years from the date of loan. In the case at
hand, the period of limitation of 3 years shall start reckoning on
28.01.2016, which would have expired on 28.01.2019. However,
as defendant has acknowledged debt on 27.07.2018, the fresh
period of limitation started running from 27.07.2018, which
expired on 27.07.2021. The later acknowledgment of debt is
dated 09.07.2023, which is beyond the period of limitation. Even
if as per judgment of Hon’ble Apex Court, the plaintiff is being
given the benefit of relaxation of Covid period, and 492 days of
remaining period of limitation is added after 01.03.2022, the later
acknowledgment of debt should have been on or before
07.07.2023 or suit should have been filed before that date.
The case of IL & FS FINANCIAL SERVICES LTD
Vs. ADHUNIK MEGHALAYA STEEL PVT. LTD
MANU/SC/0996/2025 does not apply to the facts of this case.
The case of B. Prashanth Hegde Vs. SBI MANU/SC/0156/2026
also does not come to the rescue of the plaintiff as in that case the
period of limitation was extended by various working capital
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consortium agreements executed between the parties, after the
acknowledgment of debt.
In view of the above discussion, the suit is barred by
limitation and plaint is rejected u/o 7 rule 11 (d).
File be consigned to Record Room after due
compliance.
(Mayank Mittal)
SCJ-cum-RC, North-West,
Rohini Courts, Delhi/29.05.2026(u)
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