Summary suit

Pramod Kumar (Querist) 24 November 2015 This query is : Resolved
I hD entered in to an agreement with the party in July 2012 and gave some loan. As per agreement he was supposed to return the money in two years ie by 2014 July and also gave cheques as guarantee for refund of money of date June 2015.
Now that all cheques are dishonoured am I eligible for filing summary suit for relief now in November 2015?
Is it in time limit and how time limits are computed in such case?
Thanks

Follow Query

Report Abuse

P. Venu (Expert) 24 November 2015
You can, if the other conditions are satisfied.

Rajendra K Goyal (Expert) 24 November 2015
You should have immediately send notice for dishonor of the cheques and should have filed suit u/s 138 NI Act.

Show all documents to your lawyer, if date of loan is considered only the loan has become time barred, however, all factors need to be taken in consideration for claim.

Pramod Kumar (Querist) 24 November 2015
Time limit of 3 yrs application is not clear and is not addressed.
Request to clarify how time limit is computed in summary suit matter?

M V Gupta (Expert) 24 November 2015
You have two options. 1. File a criminal complaint before the Magistrate court for dishonor of the cheques under Sec 138 of the Negotiable Instruments Act; 2. File summary suit on the basis of the cheques. For filing complaint u/sec 138, u have to issue notice of dishonor within one month of dishonor and follow other steps within the stipulated period.Unfortunately u do not seem to have issued the notice of dishonor so far. Hence u are left with the second option for which u have to file the SS within three years from the date of dishonor of each of the cheques.You can file one summary suit for all the cheques. But ensure that the suit is filed before expiry of the 3 year period from the date first chequ dishonored.