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Lending through cheque

(Querist) 27 January 2015 This query is : Resolved 
My SIL gave me a cheque of 1.4 Lacs in May, 2006 which she had got as a loan against her car from Bank and was credited to my saving account withing two days of deposit. There is no documented contract and period for repayment.I started repaying for her loan EMI and paid six EMIs and then through another financial deal i repaid her entire balance amount in cash in October, 2006 and could not obtain a receipt due to prevailing circumstances. She filed a civil suit against me in November 2009 for recovery of amount alongwith interest @24%. Please guide if the case is barred under limitation act 1963 (article 20) as it states filing case within three years of lending through cheque.
malipeddi jaggarao (Expert) 28 January 2015
You have paid six EMIs, what is the date of last EMI? The date of payment of last EMI can be considered as acknowledgement of debt and the limitation of 3 years counts from that date.
Dr J C Vashista (Expert) 28 January 2015
You are right, limitation is 3 years from the date of last transaction.
Contact, consult and engage a local lawyer for further proceeding.
Rajendra K Goyal (Expert) 28 January 2015
Limitation would count from the date of last EMI payment.
Mohan Talwar (Querist) 28 January 2015
Thanks you all for replying to my query. Here the fact is that check was received in my name and in my account whereas the repayment EMI checks in her name (not paid directly to bank) were given from my wife's account which is not borrower. Please advise.
T. Kalaiselvan, Advocate (Expert) 29 January 2015
From the dates you have mentioned, it appears that the claim is barred by limitation, however since she has already filed a suit, you may represent the insist the issue strongly before the court and get it dismissed.
malipeddi jaggarao (Expert) 30 January 2015
If the cheques are not given from the account of the borrower, but his wife's account, whether there is any direction from the borrower will be examined. Though consideration is presumed in the cheque, in this case the other party may question, why the wife has given the cheques to the creditor? That all depends upon the capabilities of their advocate and your advocate to refute their claim and valid limitation. However, you are simply prolonging the query without revealing the last date of the cheque given by the wife.


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