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Negotiable Instrument Act.

(Querist) 05 November 2008 This query is : Resolved 
Respected Seniors,

The Accused issued a cheque for which time barred debt. i.e. After expiry of 3 years limitation of promissory note the accused issued a cheque towards payment of the said promissory note.

Basing on the said cheque complainant filed a case and now stage is for marking of documents on behalf of complainant.

The complainant filed the said expired pronote for marking of document on his behalf to prove the legally recoverable debt.

In this stage what is the remedy to the Accused to defend his case. Is it possible to mark the said time barred pronote.

Thanking You Sir.
Srinivas.B.S.S.T (Expert) 05 November 2008
Madam, a cheque issued for a timebarred debt, not preceded by a valid acknowledgment of debt before expiry of limitation from the date of loan, on its dishonour, will not attract Section 138

S. Joseph Vs Devassia 2001 Cr. L. J 24 (Ker)
Gurdhari Lal Rathi Vs. Ramanujachari 1997 (2) Crimes 658(AP).

and it was also held that if there in an acknowledgement of debt even for the time barred debt as under Section 25 (3) of Contract Act then upon dishonour of such cheque issued in discharge of such debt would attract Section 138 P.N. Gopi Nath Vs. S.R. Kunju AIR 2007 (NOC) 2022(Ker).


Now coming to the point of marking the pronote as exhibit. Though it is time barred as you say, it can be marked as exhibit. On the otherhand if the same is marked you only will be benefitted as the you can prove that the debt is time barred isnt it?

your case seems to be interesting. Please try to furnish fuller details of the case. you can even mail me at s_bsst@yahoo.com. Regards Srinivas BSST.
Jithendra.H.J (Expert) 05 November 2008
Also refer
AIR 2002 SC 985
K.C.Suresh (Expert) 06 November 2008
First part of your case is attracted by S.138 Becuase time barred debt become live when it is acknowledged by the party by issuing a cheque.
Second part Prom=note can be marked in evidence.
Your case may turn to another angle if the time barred debt is renewd after the time is barred by limitation. For eg. cut off time of limitation is 25/1/2008. It is renewd by issuing a cheque dated 2/5/2008. You may favour by this situation.
You may also read the rulings given to you by our learned friends Srinivas and Jithendra. Thanks to all.


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