TF FINANCIAL SERVICES v. FBY PHARMACEUTICALS & ANOR

This case concerns a dispute over the statute of limitations in a loan recovery action. The Plaintiff, a loan-granting company, sued the Defendants for an outstanding loan balance. The 1st and 2nd Defendants argued that the action was statute-barred under the Limitations Act 1972, as more than six years had passed since the debt became due. However, the Plaintiff contended that part payments were made in 2012 and a demand notice was served in 2013, creating a fresh accrual of the cause of action. The court examined sections 4(1)(b) and 19(1)(a) of the Limitations Act 1972, which stipulate a six-year limitation period for actions founded on simple contracts and provide for fresh accrual of action upon part payment of a debt. The court found that the 1st Defendant made a part payment on August 13, 2012, which created a fresh accrual of the cause of action. As the suit was filed on April 28, 2017, it was within the six-year limitation period starting from the date of the part payment. Consequently, the court ruled that the Plaintiff's suit was not statute-barred and ordered the case to proceed to discovery and the filing of witness statements for a determination on its merits.