Cheque bounce

Querist : Anonymous (Querist) 21 October 2011 This query is : Resolved
whether cheque issued for debt older than 4 years is maintainable u/s 138 ni act

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Sailesh Kumar Shah (Expert) 21 October 2011
definitely maintable u/s 138.

prabhakar singh (Expert) 21 October 2011
This is not a very straight question. Summoning order would be justified if complaint does not disclose by its own allegation that cheque was issued for a time barred debt.If so section 25(3) of Contract Act does come into picture.So being the case ,for such a cheque aclear cut promise to pay must be accompanied to avoid complications that may emerge in future.

It is true that section 138 of NI Act speaks of only "any debt or other liability"but does not it mean its a phrase to refer legally enforceable debt or liability??should it be read in isolated manner or with reference to other statute to give it a proper meaning shall always be debatable point at the bar which bench would not be able to through straight away.

H. S. Thukral (Expert) 21 October 2011
There is an explanation in the Act itself Explanation.- For the purpose of this section, debt or other liability means a legally enforceable debt or other liability.
Mr Prabahkar, in amending Act of 2002 the above explanation was added.

Shonee Kapoor (Expert) 21 October 2011
Yes fully maintainable.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

prabhakar singh (Expert) 21 October 2011
Thank you!Mr.Thukral
i failed to look into but my confidence is boosted that such a cheque can not be basis of prosecution which i earlier said half heartily.
Now my answer is clear cut a NO to query that such a cheque can not become basis of prosecution u/s 138 of NI Act.

Devajyoti Barman (Expert) 24 October 2011
Any subsequent acknowledgement in writing makes a time barred debt fresh lease of life.
Now if the debtor issues a cheque to a time barred debt, the complaint becomes automatically maintainable as well fresh cause of action starts from the date of issuance of cheque.

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