2 friends Amit and Vikram.
Jan 2005 Amit takes loan of Rs. 10,000 from Vikram.
Jan 2006 Amit takes another loan of Rs. 20,000 from Vikram.
Vikram do not return loan.
Technically Time to file legal suit of recovery expires in Jan 2008 & Jan 2009 respectively (3 Years)
Amit send the notice to Vikram in Jan- 2010 to return loan amount with 10 % interest.
Vikram issues cheque in Jan-2010 for amount of Rs. 50,000 ( total principal + interest)
1. Is Vikram liable to be procecuted for NI Act.
2. Can Amit file civil recovery cases against Vikram in Jan-2010.
3. What would be the applicability of limitation period ( from date of loan or from the date of cheque bounce i.e last payment made).
Will Indian Contact Act apply on this case ?