Legality of old dues
anckoora
(Querist) 02 November 2009
This query is : Resolved
dear sirs,
One of our customers has issued us a cheque against our old outstanding of more than 3 years old. That cheque bounced. Legally, how old dues are legally acceptable by court for proceedings under N.I.Act ? We understand that if your dues are more than 3 years' old, it does not stand for legal proceedings. Is it true ?
thnx in adv.
regards
anckoor
Adv Archana Deshmukh
(Expert) 02 November 2009
Even if the debt is more than 3 years old, but if the debtor has acknowledged the debt and its repayment, the debt stands revived and a fresh period of limitation of 3 years starts running from the date of acknowledgement.
Sudharsan.m
(Expert) 02 November 2009
as far as the cheque bounce is concern the presumption of law is very strong even time barred debt if he pays through cheque then he agreed with it and he is abide by it and has duty to dicharge his duty.
Raj Kumar Makkad
(Expert) 02 November 2009
If no acknowedge within 2 years of issuenace of cheque, no claim at all criminally as well as civil side. But I suggest to file complaint under section 138 NI Act. practically ir is ssen that the accused makes compromise in such cases to avoid long harassment and then your money can be returned by him.
Anish goyal
(Expert) 02 November 2009
Can i extend this quarry ?
As facts suggests the debt is 3 year old. So issue of cheque will not act as acknowledgement as it is not made within time period. So my question that whether with help of section 25 of indian contract act the issue of cheque the debt will be legally enforceable 4 the purpose of section 138?
I think it will be.
Suggestions 4m other respected members are awaited.:-)
A V Vishal
(Expert) 02 November 2009
No even though the debt is 3 years old the recourse for action against the defaulting debtor is rekindled the moment he makes a part/full payment against the debt in whatever fom either by cash or a cheque and the account becomes live with a further limitation period of 3 years for initiation of action hence the querist may not only seek action under 138 he can file a civil suit for recovery of money debt.
adv. rajeev ( rajoo )
(Expert) 03 November 2009
NI act is not applicable to time barred debt.
To recover the debt limitation is 3 years.
Within 3 yers you have to issue notice to bring the debt in limitation period.
Cause of action to file the suit also arises when the debtor makes the payment in part.
Sachin Bhatia
(Expert) 03 November 2009
I suggest to file complaint under section 138 NI Act.
