CAIIB Paper 4 Module C Quiz 3

The limitation period depends on the nature of relief and the applicable Schedule article. Suits to enforce payment secured by a mortgage or charge generally have a 12-year period under Article 62, subject to facts and law.

Article 62 of the Limitation Act generally provides 12 years from when the money sued for becomes due for a suit to enforce payment secured by a mortgage or charge upon immovable property.

Many ordinary suits for money lent are subject to a three-year limitation period, but the exact article and starting point depend on the loan terms and cause of action.

Section 5 generally allows courts to admit delayed appeals and certain applications on sufficient cause. It does not extend to suits.

Section 18 requires the acknowledgment to be made before the expiry of the prescribed period. A mere post-expiry acknowledgment does not, by itself, revive a time-barred claim under section 18.

Lok Adalats facilitate settlement through compromise or conciliation in matters within their jurisdiction. They do not conduct ordinary contested trials or replace all courts.

An award of a Lok Adalat is deemed to be a decree of a civil court, is final and binding on the parties, and no appeal lies against it under the Act.

A regular Lok Adalat’s role is settlement. If compromise is not reached, it does not adjudicate the dispute on merits; the case returns to the court or parties are directed to pursue appropriate remedies.

Permanent Lok Adalats deal with disputes concerning public utility services as defined by the Act, subject to statutory limits and procedural conditions.

The statutory definition of public utility service includes specified services such as transport, postal/telegraph, supply of power, light or water, and other notified services, subject to the Act.

The Scheme’s monetary caps and operational directions are subject to RBI updates. For exam preparation, check the current official Scheme and RBI notifications rather than relying on outdated figures.

RBI’s Complaint Management System (CMS) is the official online platform for lodging and tracking complaints under the RBI complaint redress framework.

Deficiency in service refers to a shortcoming or inadequacy in a financial service that the regulated entity is required to provide. Not every commercial loss or dissatisfaction automatically qualifies.

Non-maintainability is not a finding that the bank is necessarily right on the merits. The customer should examine the reasons and assess other available remedies under applicable law.

The Scheme restricts complaints involving the same cause of action that is pending before or has been decided by a court, tribunal, arbitrator or other specified forum.

Section 13(4) includes taking possession of secured assets, taking over management in specified cases, appointing a manager, and requiring persons who acquired assets from the borrower to pay the secured creditor.

Section 13(3A) requires the secured creditor to consider the representation or objection and, if rejecting it, communicate reasons within 15 days of receipt. (Correct option should be 2.)

Section 17 allows a person aggrieved by measures under section 13(4) to apply to the DRT, subject to statutory provisions.

Section 17 generally prescribes 45 days from the date on which the measure under section 13(4) is taken. (Correct option should be adjusted to 45 days; see corrected question below.)

SARFAESI is subject to exclusions under section 31, including certain liens, pledges, security interests in agricultural land and other specified cases, as well as the Act’s other requirements.