Cheque bounce case for time barred debt

Querist : Anonymous (Querist) 07 September 2022 This query is : Resolved
I borrowed money from a person Rs. 20 lakhs through loan agreement through Account payee cheque on 25/05/2018. Agreement period is for one year duration . I issued two blank cheques with my signature for security purpose while borrowing money from the person. He filled enhanced amount on the cheque and bounced it on 01/09/2022. Since the agreement is time barred debt by limitation, can the person file cheque bounce case on me. Is it valid?

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Advocate Bhartesh goyal (Expert) 07 September 2022
It's completely time barred debt and for that complaint u/sec 138 of N.I.Act is not maintainable.

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Querist : Anonymous (Querist) 07 September 2022
Thank you for your valuable reply sir.

Dr J C Vashista (Expert) 08 September 2022
What is the reason of dishonour of cheque mentioned by Bank such as invalid, insufficient balance, stopped payment etc. etc.?
If the cheque(s) were valid at the time of presentation before Bank for realisation but dishonoured for other reason(s) then it attracts the provisions of section 138 of the Negotiable Instruments Act, 1881.
However, nothing can be presumed and opined /advised without perusing the memo of Bank against subject cheque(s)

Querist : Anonymous (Querist) 08 September 2022
My cheque was dishounored due to insufficient funds. But I did not give to him recently. The blank cheque I gave him 4 years ago he bounced now

Advocate Bhartesh goyal (Expert) 08 September 2022
At the time of presenting cheque For encashment, debt became time barred as money was borrowed on 25-05-2018 through loan agreement for the period of one year.Since one year period expired on 25-05-2019 and loan agreement for recovery of money expired on 25-05-2021 thereafter cheque was presented for encashment on 01-09-2022 so if case for cheque bounce is filed on given facts would not be maintainable as time barred.

P. Venu (Expert) 09 September 2022
Does the complaint plead and admit that you (the accused) had given blank but signed cheque on 25/05/2018. Most probably the complaint would be based on a totally different version of things.

Dr J C Vashista (Expert) 10 September 2022
Certain vital and relevant facts are missing from the post, which are opined by experts on the basis of presumptions and assumption. it is improper to render proper / appropriate advise, accordingly consult a local prudent lawyer with relevant records.

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Cheque bounce case for time barred debt

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