Claim of bank would be barred by limitation if suit for recovery of loan was not filed within period of 3 years of default by the govt teacher

The suit for recovery of loan is barred by limitation. So the suit filed by the bank is not valid. If the bank has document to prove the continuity of debt signed by the defaulter then they can over come the limitation.

1) if suit is not maintainable bank would not be able to recover the loan

2) i presume you have not issued any blank cheques

3) i further presume you have not signed any aundated acknowledgment of liability

Whether a government teacher or any ordinary customer, the bank has to initiate recovery process as per law.

If the government employee has defaulted the loan repayment, then the bank has to first file a recovery suit, get a decree in its favor and then initiate execution petition for recovery through garnishee i.e,.through the employer of the teacher to recover the same from the teacher's salary.

I know claim will be barred, but are there any loopholes?

If the claim is barred by limitation then the bank may first issue a legal demand notice to the teacher.

If the teacher acknowledges the loan and requests for time to repay, then the fresh limitation starts from the date of such acknowledgement.

court would consider only legal position that claim is barred by limitation

2) it would not consider negligence of bank employee and hence condone delay in filing recovery suit

Can the bank appeal to the court that staff lapse has happened from its part, hence to pardon the Acknowledgement of debt?

There is no provision in law for this and court will not entertain any such case which is illegal or contrary to law.

we are not known the law is not an excuse from getting punishments. The court will not consider the bank excuse and not pardon the mistake of employee.