Limitation barred loan recovery; later correspondence could not revive the debt or support coercive revenue recovery.

A time-barred loan claim could not be enforced through revenue recovery because the demand was raised after limitation had expired. A later letter from the debtors did not revive the claim under Section 18 of the Limitation Act, 1963, since an acknowledgment must be made before expiry of limitation. It also did not amount to a valid promise under Section 25(3) of the Indian Contract Act, 1872, as it contained a denial of liability, only a conditional proposal, and no concluded agreement to pay the barred debt. The coercive recovery action under the A.P. Revenue Recovery Act, 1864, was therefore set aside.

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Issues: Whether the corporation's claim for recovery of the loan amount was barred by limitation and therefore unenforceable under the A.P. Revenue Recovery Act, 1864.

Analysis: The only surviving controversy was whether the demand raised in 1988 for a loan advanced in 1971 could still be enforced. On the admitted and pleaded facts, the claim had already become time-barred by the date of demand. A subsequent letter written by the petitioners could not operate as an acknowledgment under Section 18 of the Limitation Act, 1963 because an acknowledgment must be made before expiry of the limitation period. The letter also did not amount to a promise within Section 25(3) of the Indian Contract Act, 1872, since it contained a categorical denial of liability, only a conditional proposal without acceptance, and no concluded agreement to pay the full debt.

Conclusion: The claim was held to be barred by limitation and not recoverable under the A.P. Revenue Recovery Act, 1864, in favour of the petitioners.

Final Conclusion: The writ petition succeeded, and the coercive recovery action based on the time-barred claim was set aside.

Ratio Decidendi: A debt that is already barred by limitation cannot be revived by a later acknowledgment or enforced through a recovery mechanism unless there is a valid, concluded promise to pay the barred debt in accordance with law.

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