THE LIFE SPAN OF DEBTS IN NIGERIA (CONTINUATION)

This is a follow-up on my post of 22nd May, 2015. See that post for a recap.

Two friends were in the same line of business in the south eastern part of Nigeria. One of this two friends whose business was booming lent the sum of one hundred thousand naira (N100, 000.00) to the other after being pestered by him.The debtor wrote and signed an undertaking to repay the debt one month later.

Unfortunately, this man that lent his friend money (the creditor) died suddenly before the expiration of the one month ultimatum to repay the debt.

Ten years later, the personal representatives of the deceased creditor stumbled on the undertaking duly signed by the deceased's friend as the debtor about ten years before.They then confronted the debtor with the undertaking.

When confronted with the undertaking duly signed by him, he apologised for failing/omitting to repay the debt at the stipulated time and made a part repayment of the sum of fifty thousand naira out of one hundred thousand naira without the interest as no mention was made of the interest.He then promised to give  the deceased's personal representatives the balance of fifty thousand( N50, 000.00) two months after.Both parties agreed to this.

At the expiration of the two months' ultimatum, the debtor did not pay the balance.When it was one month after the ultimatum lapsed, the deceased's personal representatives threatened to sue to recover the unpaid balance from the debtor.

The debtor told them that that was an empty threat because in the actual sense the deceased creditor's estate right to sue for the recovery of either the entire debt or the balance was belated having failed/omitted to recover the debt within the first six years after he failed to repay the debt in the first instance.

Any remedy in law for the deceased's estate or personal representatives in the circumstances?

THE LEGAL POSITION
Although a right to institute an action for the recovery of a debt becomes statute-barred six years after the cause of action arose, the right is resuscitated and is alive for another six years if the debtor acknowledges the debt either by an undertaking duly signed by him or by making a part repayment of the debt.

In the above scenario, the cause of action initially arose over ten years earlier when the debtor failed/neglected to repay the debt at the agreed time.The right of action was renewed for another  six years when the debtor acknowledged the debt by apologising to the personal representatives of the deceased and making a part repayment of the debt.Therefore, the personal representatives of the deceased creditor would still be acting within time if they sued for the recovery of the balance of the debt within six years the debtor acknowledged the debt.

Thank you for your attention. See you tomorrow.