Does the 3-year Limitation Act apply to mother’s sale proceeds?
Does the 3-year limitation period apply to the sale proceeds of a mother’s self-acquired property when she executed the sale while bedridden, and the proceeds remain in her name as a fixed deposit for 6 years after her death?
The 3-year limitation period for recovery of such money (in this case FD) by legal heris is applicable but starts from the date of demand for such FD or refusal by the bank and not from the date of death. Mere passage of time after a parent’s death does not bar a legal heir’s claim for the sale proceeds of her self-acquired property, if the amount remains in a Fixed Deposit and no demand has been made. The 3-year period runs only from the date of actual demand and refusal by the bank. If the FD is auto-renewed or left untouched for years, limitation does not run until demand and refusal.
Challenging your mother’s sale deed is barred after 3 years under Article 59, Limitation Act. However, claiming the FD proceeds is different, limitation starts only when the bank refuses release, not from her death. Hence, even after 6 years, heirs can claim the FD by producing succession certificate/legal heir proof, though back interest may be restricted. For further legal assistance contact us on our helpline number.
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