Agreement to pay time barred debt not amounting to acknowledgment

THIS AGREEMENT made on _________ day of ______ 20_____.

Between __________________________ Bank (hereinafter called “the Bank”) (which term shall include their heirs, executors, administrators and assigns) of the One Part and M/s ___________________ (hereinafter called “the Borrowers” which term shall include their heirs, executors, administrators and assigns) of the Other Part.

WHEREAS the Borrowers were enjoying banking facilities by way of _______ and a sum of Rs. _______ (Rupees ______________) is due and payable by the Borrowers as on ____________.

And Whereas, the said balance of Rs._______ (Rupees __________) has become time barred under the Limitation Act, 1963 and the Borrowers cannot give a fresh period of limitation in favour of the Bank in respect of the said debts but, the Borrowers are willing and have agreed to pay the same upon the Bank agreeing to grant fresh advance to the Borrowers at their request.

NOW, THEREFORE THIS AGREEMENT WITNESSETH as follows:

1. In consideration of the _________ Bank agreeing to grant fresh advance by way of ______ up to the sum of Rs.______ to the Borrowers, the Borrowers do hereby agree and promise to pay to the said Bank on demand made at any time hereinafter the sum of Rs.________ which the Borrowers do hereby confirm as correctly due and payable to the Bank by the Borrowers as the liability outstanding in the account of the Borrowers subsisting with the Bank on _______.
2. That the Borrowers also agree to pay interest on the said amount of Rs._______ at the rate of _____% per annum over RBI rate with ________ rests till repayment in full.
3. That the Borrowers do hereby further agree to execute all the necessary documents in respect of the fresh amount of advance agreed to be granted by the Bank in favour of the Borrowers.
4. That the Borrowers hereby agree and confirm that the collateral securities as furnished herewith and described in the schedule hereunder shall remain hypothecated/pledged for the repayment of the said amount of loan with interest, costs and other charges to the Bank.

 

SCHEDULE ABOVE REFERRED TO:

(Particulars of securities hypothecated/pledged)

 

In Witness Whereof, etc.