Negotiable instrument act
utpal d jambu
(Querist) 16 August 2012
This query is : Resolved
VALIDITY OF CHEQUE GIVEN FOR TIME BARRED DEBT...
Nadeem Qureshi
(Expert) 16 August 2012
Dear Querist
The cheque is valid till three months of the Issued date.
Ravikant Soni
(Expert) 17 August 2012
Cheque issued for time barred debt does not attract the provision of sec. 138 NI Act.
malipeddi jaggarao
(Expert) 17 August 2012
Debt is time-barred, but debt is in existence. Hence any cheque give for repayment of time-barred debt is for valid consideration. As far as time limit for validity of cheque is concerned, it is 3 months now.
prabhakar singh
(Expert) 17 August 2012
You may please read the following explanation
in the section 138 of N.I.Act:..
"Explanation: For the purpose of this section, "debt or other liability" means a legally enforceable debt or other liability]."
So criminal proceedings can not be initiated and Civil suit would also be possible only when section 25 of the Indian contract Act is complied with,that to say accompanied by promise to pay time barred debt.
Then the promise precedes issue of cheque then not only suit but proceedings under section 138 N.I.Act shall be attracted because at the date of cheque,because of prepromise u/s25CONTRACT ACT,debt has become recoverable and enforceable and explanation to section cited above is not attracted then.
Arvind Singh Chauhan
(Expert) 18 August 2012
In addition to opinion of prabhakar Sir, I think though debt has been time barred, but as soon as fresh cheque is drawn for it's payment, new cause of action arose and civil and criminal liability born out again.
