Validity of loan amount under N.I Act
Goutam
(Querist) 06 October 2010
This query is : Resolved
In which period the loan amount or (loan )consider will be time barred under N.I Act.
R.Ramachandran
(Expert) 06 October 2010
Dear Mr. Goutam,
First enlighten me the connection between a loan amount (or loan) and the N.I. Act? I am not able to make head or tail out of your post.
Guest
(Expert) 06 October 2010
yes specify the the whole matter in order to understand.
Devajyoti Barman
(Expert) 06 October 2010
It is 3 years from the date when it becomes due.
R.Ranganathan
(Expert) 07 October 2010
It is not 3 years in N I Act. NI Act deals with cheques. On presentation within 6 months of the date of issue of cheque, it has to be presented. Otherwise the cheque will become stale. So you cannot claim any amount through that cheque. Further after the cheque is dishonoured notice has to be given within 1 month from the date of dishonour giving 15 days time for payment. So all these things form the basis for becoming time barred matter in NI Act and not the loan amount.
Sri Vijayan.A
(Expert) 07 October 2010
Mr.Ranganathan is right as the cheque is considered
And it is 3 years for the recovery of loan amount
Goutam
(Querist) 07 October 2010
Dear R. Ramamchandarn,
I mean to say that if in a complaint facts are mentioned by the an advocate which clear shows that the loan was given by the complainant 3 years ago (suppose)i.e loan was given by the complainant to the accused in the year 2007, and the cheque was given by the accused to complainant to pay off his dues in2010, and the same cheque presented by the complainant in the bank and its dishonored.
Then the complaint filed by complainant u/s 138 of N.I is maintainable.
There is any ruling or any law which shows that if the loan become time-barred,then the complainant is not entitled to claim that amount,
At last i mean to say that if a person gives loan to another then what is the time period in which he is entitled to claim that amount by two ways:-
1. firstly by way of Suit for recovery .
2 Secondly by way of criminal proceeding u/s 138 of N.I Act if he received a cheque after a long period.
Parthasarathi Loganathan
(Expert) 07 October 2010
First of all one should understand that Recovery to the loan even if it is time barred can very well be accepted even by means of cheque. Loans are not covered under NI Act. A loan account duly documented by a Demand Promissory Note is valid for 36 months. We should not be confused with two entirely different issues.
ashish lal
(Expert) 07 October 2010
if the accused had taken loan in 2007 with an understanding that same would be returned in 2010 then the complaint is maintainable. This is because when the cheque was presented in the accused bank, the accused had a legal debt and liability towards the complainant.
s.subramanian
(Expert) 07 October 2010
When the debt is timebarred,the proceedings under Sec.138 cannot stand.
R.Ramachandran
(Expert) 07 October 2010
In addition to what Mr. Ashish Lal has said, if the date of the cheque falls within 3 years limitation period, then it would act as an acknowledgement of the debt and the limitation would automatically get extended.
Goutam
(Querist) 07 October 2010
Dear S.subramanian,
Plz let me know that under which section and under which Bare Act it is mentioned that when debt is timebarred the proceeding under sec. 138 cannot stand. I am in need of it.
if you have any rulings or judgments regarding this.plz give it.
R.Ramachandran
(Expert) 07 October 2010
The case under Sec. 138 N.I. can be filed only when the cheque which bounced was issued in discharge of any legally enforceable debt or liability. The debt is legally enforceable only if it is within limitation. Conversely, a debt, which is time-barred cannot be legally enforceable.
Explanation to Section 138 clearly mentions this.
Gaurang S. Rangunwala
(Expert) 12 October 2010
Your question is mixing two acts i.e. the limitation act and N.I.Act. but your answer is as per limitation act if the creditor has not been claiming within three three years from the due date then the loan amount would be time barred as per the eyes of law.
the law of N.I.Act is irrelevant in your question.
