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December
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Statute of Limitations
The statute of limitations is a legal concept that results in the loss of a creditor’s right to seek protection of their claim due to their inactivity over a period of time prescribed by law. In other words, limitation occurs when the creditor does not demand fulfilment of their claim from the debtor within the legally specified period. The Obligations Act stipulates that, once limitation occurs, the creditor loses the right to demand fulfillment of the obligation. In practical terms, when a claim becomes time-barred, the creditor can no longer initiate court proceedings—whether by filing a lawsuit or an enforcement proposal—to require...
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