TIME BARRED DEBT

1. Indian limitation Act, 1923 – A debt is said to be time barred on expiry of 3 years
from the due date, if the amount has not been recovered and also no action has
been taken for recovery of the amount.
2. A time barred debt is not recoverable.
3. A written promise to pay time barred debt & signed by the promisor or his duly
authorized agent is valid.
4. A person who pay time barred debt, in ignorance of Indian Limitation Act, 1963
(Indian Law), cannot recover it back.
5. In case of appropriation of payment, here there is an appropriation by time,
payment may appropriated to the debt first in time, whether time barred or not.
6. An agreement which is not legally enforceable but binding in honour only is invalid.
7. In commercial & Business Agreements, the intention of parties to create legal
relationship is presumed to exist.