Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: A time barred debt cannot be enforced in a Court of law. The time limit for enforcing a debt is 3 years from the date of demand made for repayment.
FACTUAL SITUATION: Mahesh had lent Rs. 10 lakhs to Sohan. Sohan has executed a promissory note to repay the loan amount alongwith interest whenever it is demanded by Mahesh. The loan was given on 1-1-2000. Mahesh demanded the lent amount of Rs. 10 lakhs alongwith the agreed amount interest on 1-2-2003. In the meanwhile, Mahesh, a busy exporters, forgot about recovery of the amount given to the Sohan. Sohan also found it convenient and not repay the amount on 30th April, 2006. Mahesh remembers about the loan due from Soham and accordingly demands the repayment of the loan. Sohan is not serious about the repayment now.
Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: A time barred debt cannot be enforced in a Court of law. The time limit for enforcing a debt is 3 years from the date of demand made for repayment.
FACTUAL SITUATION: Mahesh had lent Rs. 10 lakhs to Sohan. Sohan has executed a promissory note to repay the loan amount alongwith interest whenever it is demanded by Mahesh. The loan was given on 1-1-2000. Mahesh demanded the lent amount of Rs. 10 lakhs alongwith the agreed amount interest on 1-2-2003. In the meanwhile, Mahesh, a busy exporters, forgot about recovery of the amount given to the Sohan. Sohan also found it convenient and not repay the amount on 30th April, 2006. Mahesh remembers about the loan due from Soham and accordingly demands the repayment of the loan. Sohan is not serious about the repayment now.
The correct option is A Mahesh can make the money only if Sohan gives the amount of her own Will.
Mahesh is the creditor that is the one who has credited the money to another person, whereas Sohan is the debtor, ie. to whom the money has been lend. Mahseh has lent Rs. 10 lakhs to Sohan on Ist Jan 2000. Mahesh demanded repayment from Sohan on 1st Feb. 2003. Now the debt will be enforceable in the Court of Law for three years from 1st Feb. 2003 i.e. till 1st Feb. 2006.Since its already 30th April 2006 and the time period for enforcement has ended. Therefore, the debt is time-barred and cannot be enforced in the Court of Law.A is the correct option.
Mahesh is the creditor that is the one who has credited the money to another person, whereas Sohan is the debtor, ie. to whom the money has been lend.
