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Madhu Mittal (Director)     21 May 2023

Limitation revival after lapsing it once

A loan is given to a Partnership Firm on 26.09.2017 through banking channel on the basis of a post dated cheque dated 26.08.2019, in addition to this interest to be paid monthly by cheque. Interest was duly paid upto 08.08.2018 by an account payee cheque dated 06.08.2018. Afterwards no interest was paid. When the post dated cheque 26.08.2019 (handed over to complainant on 26.09.2017) was presented for payment it was dishonored, so a case u/s 138 was lodged . Two accused partners got bail on 19.04.2022. on 10.05.2022, charge was read and explained to two, the claimed to by tried  and afterwards kept on filing application of absenteeism (Haziri Maphi) and third one was arrested on 04.04.2023.

Now on 12.04.2023, a banker cheque dated 06.03.2023 , equal to face value of cheque was deposited by the accused in the court with the request application dated 12.04.2023 to give the banker cheque to complainant and decided the matter, which was got by the complainant. On next date 24.04.2023, argument on heard from both the side, complainant arguing that Statutory interest and other expenses, should also be got given to Complainant in addition to this amount of Face value of cheque. But on 12.05.2023, accused was acquitted  stating reason that it was at initial stage and amount of cheque has been got by the complainant without any objection except  demanding for expenses.

Whether fresh Limitation is available for civil suit from  06.03.2023 i.e. the date of banker cheque, as before this, last payment of interest was made by cheque dated 06.08.2018 was already expired? Please guide with citation if possible.


 4 Replies

T. Kalaiselvan, Advocate (Advocate)     21 May 2023

Since the accused did not pay the interest claimed by you and paid only cheque amount on 06.03.2023, you can claim the interest over the cheque amount from the date of filing the cheque  bounce case and litigation expenses separately in the civil suit by filing a summary suit.

It is a settled that you can recover interest and legal expenses from the drawer of the dishonored cheque in a summary suit for recovery of money, but not in the proceedings initiated under Section 138 N.I. Act


Madhu Mittal (Director)     21 May 2023

Whether limitation of three years are available from last payment  06.03.2023 ,  while three years from last payment 06.08.2018 already expired. 

T. Kalaiselvan, Advocate (Advocate)     21 May 2023

My answer is very clear that the limitation for three years will start from the date of he making the final payment, i.e., the cheque amount which was accepted by the complainant in the court, which was on 12.04.2023, because that was the date he presented the cheque before court.

The date of cheque is not the date of last payment, becasue the payment was made before court on 12.04.2023 and not on 06.03.2023 (which is the date of cheque)

Madhu Mittal (Director)     21 May 2023

Here , I want to draw your kind attention that three years of last payment 6.8.2018 ie. 6.8.2021 has already expired in 2021 it self. So payment on 12.04.2023 will revive limitation or not. Please guide again on this point .

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