Limitation Act
Sohit
(Querist) 23 April 2011
This query is : Resolved
I have deposited an amount of Rs25,000/- with a person on 20/05/2003 by cheque. The said person paid be interest on the said deposit till 20/05/2007 and failed to pay interest thereafter.I repeatedly demanded the interest on the said deposit from the said person,but he did'nt pay, therefore finally in the month of March 2011 I demanded my depsoited amount from the said person alongwith interest, the said person agreed to return the said deposited amount of Rs25,000/- and issued a cheque for 25,000/- dated 29/03/2011, but the said cheque on presentation got dishonoured. Whether the said transaction will be treated as Time barred debt
Arvind Singh Chauhan
(Expert) 23 April 2011
For criminal action under 138 NI Act, limitation has been expired. Now the only remedy is to file recovery suit for which limitation starts from the date of dishonor and is 3 years.
Advocate Bhartesh goyal
(Expert) 23 April 2011
Yes,neither you can file complaint u/s 138 of N.I.Act nor civil suit for recovery cf money as time barred.In your case limitation starts from 20- 5- 2007 when last payment of interest was paid to you.Sec 18 of Limitation Act will be applied and the three years limitation has been expired on 20- 5- 2010.
Sohit
(Querist) 24 April 2011
Sir, whether the ART 22 of Limitation Act will not come into play, as it is the case of deposit and the limitation for recovery of deposited amount starts from the date of demand which is in the month of March 2011
ANIL AGARWAL
(Expert) 24 April 2011
Issuance of cheque will be revival of liability. It will be having fresh start of limitation. If youmhave issued demand notice within 30days from date of dishonour, you can initiate 138 proceedings, else deposit it again and initiate 138 proceedings. Civil case is also maintainable. File summary suit.
RAJU O.F.,
(Expert) 24 April 2011
You need not worry about time bar of debt, since the person has issued cheque during March 2011, in lieu of the Deposit amount. As the cheque is bounced you may immediately issue demand notice within 30 days from return of cheque and proceed under Sec.138 of NI Act. You may not get the interest for period after 20-05-2007.
Govind
(Expert) 24 April 2011
Dear Sohit
you have no legal remedy to recover the debt amount and you can only harass them through filing the 138 NI against that person because on filing the case court issue the bailable summons to him but in evidence court found the case in favour of accused and you found nothing.
but it does not mean you have no right to recover the money. you can recover the money from him by hook or crook.
adv. rajeev ( rajoo )
(Expert) 23 April 2011
