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Limitation of 138 N.I.Act

Querist : Anonymous (Querist) 08 September 2010 This query is : Resolved 
Sir,
I have presented the cheque three times in the bank on the request of the drawer but each time that was dishonord by his bank. Lastly I sended over him a legal notice within the limitation (within 30 days of last bank MEMO) and after that I file the suit in court under the limitation but I have mentioned the reference of all the dates in the Suit. Is it illegal ?. From when the limitation will start runing either First dishonor or the from first notice Kindly sugess.
Devajyoti Barman (Expert) 08 September 2010
No, nothing will happen out of mentioning about presenting the cheque on several occasions. The limitation start from the date of last dishonour.
Now , if you on each dishonour you sent a legal notice then the limitation will start from the date of first notice.
R.Ranganathan (Expert) 08 September 2010
General rule is that the limitation starts from the date of first dishonour. But if you can prove to the satisfaction of the court that the cheque was re-presented only on the request of the issuer, then the date of last dishonour will be taken into account for limitation.
M/s. Y-not legal services (Expert) 08 September 2010
I am agree with mr.barman. Also mr.ranganathan says that limitation starts from first dishonour.. Is it correct? I think no.. Because with in the cheque's life.. I mean on that 6 months you may re presented how many times as you like, its no problem.. But not yet you didn't issue any legal notice mean your limitation starts from last dishonour memo.. Got it? But you can't sent legal notice on all dishonours..
Raju Ramparag Gupta (Expert) 09 September 2010
No issues with regards to earlier dishonor. You have sent the legal notice in time and filed the complaint as well on time so no need to worry.
No problem would arise by mentioning the earlier dishonor.
s.subramanian (Expert) 09 September 2010
A cheque can be presented for collection any number of times within the validity period of 6 months. While being so the date of last dishonour alone will the reckoning date for the purpose of limitation. If the date of first dishonour is taken for limitation purposes,it will affect the rights of the drawee,who is entitled to the benefit of subsequent dishonours also. That cannot be denied to him. That is also not the object of the Limitation Act.
DEFENSE ADVOCATE.-firmaction@g (Expert) 16 September 2010
No sir, you have to give notice for every dishonor from first one than only last notice will be valid.

There are SC citations specific on this issue , if pl some body search and post as a file.

Regarding validity many friends get confused. The law clearly says that the cheque is valid for six months or till validity whichever is earlier.

The word EARLIER is most imp, so the the holder has to prove that the validity was extended by the drawer from the date of cheque.


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