KCC 1580/2012

This case involved the impact of the statute of limitations on a claimed debt. Even if the statute of limitations applied the debtor could be asked to swear about the debt. If the commercial paper was a guarantee the debt still existed.

Background

A bank obtained a payment of 10803 Dinars order against a debtor.

The debtor appealed the payment order before the court of appeal. The court dismissed the payment order and ruled that the case should be dismissed due to the statute of limitations.

The bank appealed the ruling before the court of cassation. The bank said in its grounds of appeal that the ruling had erred in the application of law and had violated the right of defence. The bank said that the court had dismissed the case on the grounds of the rules of Article 502 of the Law of Commerce though the statute of limitation was established based on the presumption of fulfilment of the debt and that the debtor did not take the oath. The bank said that the debtor's defence that the commercial paper was issued as a guarantee for a loan contradicted the presumption.

Decision