Section 36 of the SARFAESI Act deals with the limitation

Solution

Section 36 of the SARFAESI Act explicitly provides that no secured creditor shall be entitled to take all or any of the measures under sub-section (4) of section 13, unless his claim in respect of the financial asset is made within the period of limitation prescribed under the Limitation Act, 1963. This means the applicable limitation period from the Limitation Act, 1963 must be adhered to - typically three years from the date the cause of action arises (date of NPA or last acknowledgement of debt). Failure to initiate enforcement within the limitation period bars the creditor's right to invoke SARFAESI remedies. This provision prevents banks from sitting on their rights indefinitely.