Timit Limit of a Loan to file civil case

On Nov 3, 2003 we get a new motorcycle in installment basis. Unfortunately, it was carnapped in December 16, 2003. We were not able to report it to Traffic Management Group because the motorcycle has no paper or was not yet registered to LTO because the store had yet to file it. We waited for more than 1 month to register the motorcyle and reported to TMG.

The store demanded that we still need to pay the total amount of 65T. They brought the case to Barangay and we asked for another meeting with their Manager. But years has passed until last Monday, July 18, 2011. We receive a demand letter, asking us to pay within 10 days the total amount of 95T, or else they will bring the case to court.

Now my question, does the case still valid even after almost 8 years of not hearing anything from them. Do we have right to refuse to pay the amount since they only registered the motorcycle after it was lost.

Thank you very much.

yes, they have up to 10 years to make a demand, though you can still try to claim that they are barred by their own inaction for 8 years.

didn't the motorcycle have comprehensive insurance?