Kumari Snigdha 04 January 2018
I had taken a personal loan from the bank in 2008 for rs 5 Lac to be repaid in 3 yes .. repaid 5 instalment of rs 16000 each n didn't repay after that..had given 3 undated signed cheques of 2 Lac each at the time of disbursement..the loan became time barred in in 2014.. now in 2017 the recovery agent is harassing me.. my Q is can the bank use the old cheques to recover the debt even though the limitation period has elapsed & the debt is presently not legally enforceable. Plz advise
Kumari Snigdha 04 January 2018
Kumari Snigdha 04 January 2018
Kumari Snigdha 04 January 2018
Nitish Banka (lawyer) 04 January 2018
Dear Snigdha,
Bank can use undated cheques and you may be prosecuted U/s NI 138 if chques are bounced. The cheques can be used as acknowledgement of debt and Limitation period can be revived.
Adv. Nitish Banka
9891549997
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 04 January 2018
The High Court clearly held that if a cheque is issued for a time barred debt and it is dishonoured the accused cannot be convicted under Section 138 of the N.I. Act. simply, on the ground that the debt is not legally recoverable.
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