For money lent in India you generally have 3 years to sue, counted from the day you lent it (Limitation Act, Article 19), not from when you ask for it back. A signed acknowledgment or signed part payment before then starts a fresh 3 years. Example: ₹80,000 lent on 10 Mar 2024 must be sued for by 10 Mar 2027.
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When does the 3-year clock start?
The Schedule to the Limitation Act gives each kind of claim its own article. For the usual informal loans, the period is 3 years in every row below; what changes is the day it starts.
| Your situation | Article | The clock starts |
|---|---|---|
| Money lent in cash, by UPI or by bank transfer | 19 | When the loan is made |
| Money lent by cheque | 20 | When the cheque is paid (cleared) |
| Money lent "payable on demand" (return it when I ask) | 21 | When the loan is made, not when you ask |
| Unpaid interest | 25 | When the interest becomes due |
| A hisaab (account) written out and signed by the borrower | 26 | When the account is stated in writing and signed |
| Pronote payable on demand | 35 | The date of the note |
| Pronote payable on a fixed date | 31 | When the note falls due |
| Pronote or bond payable in instalments | 36, 37 | Each instalment’s due date; or the default, if a missed instalment makes the whole due |
| Any claim with no article of its own | 113 | When the right to sue accrues |
- Asking for the money back does not move the clock. Even a loan "payable on demand" runs from the day it was given.
- A loan agreement with a fixed repayment date (not a pronote) is not a row of its own above. When the clock starts for it can differ, so ask a lawyer.
- A bounced cheque has its own, much shorter deadlines under the Negotiable Instruments Act: see how to recover money lent.
- Pronotes are explained in full in pronote: interest, validity and format.
How to restart the clock: a signature, or a signed payment
Two things start a fresh 3 years. Both work only if they happen before the current period runs out.
- A signed acknowledgment (section 18). The borrower, or an agent authorised by them, signs a writing that admits the debt. A fresh 3 years count from the day it is signed. It still counts if it doesn’t give the exact amount, says the time to pay hasn’t come, or comes with a refusal to pay.
- A part payment, acknowledged in writing (section 19). The borrower pays something towards the debt, and the payment is acknowledged in their own handwriting or in a writing they sign. A fresh 3 years count from the payment date. The money alone, without that writing, is not enough under this section.
WhatsApp messages and UPI payments
Chats and UPI statements are useful proof that money was lent and repaid. The Bharatiya Sakshya Adhiniyam, 2023 lets electronic records be used in evidence (section 61), with a certificate under section 63 when they are produced in court. But sections 18 and 19 ask for a writing signed by the borrower, or a payment acknowledged in their handwriting or signed writing. Whether a chat or a UPI entry meets that test depends on the facts, so don’t stake your deadline on it. Get a signature on paper as well.
Worked example: ₹80,000 at ₹1 sekda, with a signed part payment
₹80,000 is lent by UPI on 10 Mar 2024, with no repayment date, at ₹1 sekda (12% a year, simple).
- Clock starts: 10 Mar 2024 (Article 19). Last day to sue: 10 Mar 2027.
- Part payment: on 1 Feb 2026 the borrower pays ₹10,000 and signs an entry for it. Interest due by then: 22 months 22 days on ₹80,000 = ₹18,186.67.
- Interest first: the whole ₹10,000 goes to interest. The principal stays ₹80,000 and ₹8,186.67 of interest is still due. See why interest is cleared first.
- New last day: a fresh 3 years from the payment, 1 Feb 2029.
| Date | What happens | Owed that day | Last day to sue |
|---|---|---|---|
| 10 Mar 2024 | Loan given (UPI) | ₹80,000 | 10 Mar 2027 |
| 1 Feb 2026 | ₹10,000 paid and signed for | ₹88,186.67 | 1 Feb 2029 |
| 10 Mar 2027 | Old last day passes | ₹98,800 | 1 Feb 2029 |
| 1 Feb 2029 | New last day, if nothing else happens | ₹1,16,986.67 | 1 Feb 2029 |
Without the signed entry, the lender would have had to file by 10 Mar 2027. With it, there is time until 1 Feb 2029, but interest keeps running at ₹800 a month, so the sum to claim grows too.
Try it in the calculatorCheck the ₹18,186.67 of interest from 10 Mar 2024 to 1 Feb 2026Try it in the calculatorOpen this loan in the part-payment calculator: ₹1,16,986.67 owed on 1 Feb 2029Can you recover a loan after 3 years?
Usually not through the courts. Section 3 of the Limitation Act says a suit filed after the prescribed period shall be dismissed, even if the borrower doesn’t raise limitation as a defence. Once the period has run out, a later acknowledgment or payment does not restart it under sections 18 and 19, because both need to come before expiry.
One route remains: if the borrower gives a fresh promise in writing, signed by them, to pay all or part of the time-barred debt, section 25(3) of the Indian Contract Act, 1872 makes that promise a valid contract, and it can be enforced as one.
After you win: 12 years to execute the decree
The 3-year rule is for filing the suit. Once the court passes a decree for money, Article 136 gives 12 years to apply for its execution, counted from when the decree becomes enforceable, or, where it orders payment on a set date or in instalments, from the default in that payment.
Counting the last day
- The first day is left out (section 12(1)). So 3 years from 10 Mar 2024 run to 10 Mar 2027.
- A court holiday on the last day: you may file on the day the court reopens (section 4).
- Don’t plan around the last day. A notice, papers and court fees take time, and the exact day can depend on facts a lawyer needs to see.
Sources
- Limitation Act, 1963, with the Schedule: sections 4 and 12, and Articles 19, 20, 21, 25, 26, 31, 35, 36, 37, 113 and 136.
- Limitation Act, 1963, section 3: a suit filed after the prescribed period shall be dismissed.
- Limitation Act, 1963, section 18: a signed acknowledgment starts a fresh period.
- Limitation Act, 1963, section 19: a payment acknowledged in the payer’s handwriting or signed writing starts a fresh period.
- Indian Contract Act, 1872: section 25(3), a written, signed promise to pay a time-barred debt.
- Bharatiya Sakshya Adhiniyam, 2023: sections 61 and 63, electronic records as evidence and the certificate.
6 short answersLoan recovery time limit: your questions
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Can a money recovery suit be filed after 3 years?
Not as a rule. Section 3 of the Limitation Act says a suit filed after the time limit shall be dismissed, even if the borrower doesn’t raise it. The exceptions: a signed acknowledgment or signed part payment restarted the 3 years before they ran out, or the borrower later gave a written, signed promise to pay the old debt.
Do the 3 years start from the loan date or from when I ask for the money?
From the loan date. For money lent, even money lent "payable on demand", Articles 19 and 21 start the clock when the loan is made. Asking for the money back later does not move it. If you lent by cheque, the clock starts when your cheque is paid (Article 20).
Does a WhatsApp message or UPI payment restart the limitation period?
Don’t rely on it. Section 18 needs a written acknowledgment signed by the borrower, and section 19 needs a part payment acknowledged in the payer’s handwriting or in a writing they sign. Whether a chat or a UPI entry meets that test depends on the facts, so get a signed paper as well.
What counts as a written acknowledgment of a debt?
A writing, signed by the borrower or their authorised agent before the 3 years run out, that admits the debt. Under section 18 it still counts if it doesn’t state the exact amount, says the time to pay hasn’t come, or comes with a refusal to pay. A fresh 3 years run from the day it is signed.
How long can a court decree for money be enforced?
For 12 years. Under Article 136 of the Limitation Act, you can apply to execute a decree within 12 years from when it becomes enforceable. So the 3-year rule is for filing the case; once you have a decree, you have much longer to recover through the court.
What if the last day falls on a court holiday?
You may file on the day the court reopens (section 4). In counting, the day the period starts from is left out (section 12), so 3 years from 10 Mar 2024 run to 10 Mar 2027. Don’t plan around the last day, though: a notice and the papers take time.