CA
6980 Points
Joined January 2010
Hope you are inquiring about extinguishment of right of the payee / creditor to sue in a court of law to recover the money from the maker of the promissory note. This is not mentioned in the NI Act and we have to refer the Limitation Act, 1963 for limitation under various Acts.
As per the schedule to Act:
The limitation period on promissory note payable at a fixed time after date is three years from the date when the note fall due.
For example, A of Bangalore executed a promissory note favoring B at Hyderabad for Rs. 10,000 on 01-10-2010 payable after 30-09-2010 at Delhi. B can sue A in a Court of law on or before 30-09-2014 i.e. 3 years from the due date of the promissory note.