Dear friends,
Resolving doubts over two differing interpretations of the Supreme Court in the matter of Negotiable Instruments Act, a larger Bench last week stated that for the purpose of calculating the period of limitation of one month, which is prescribed under Section 142( b) of the Act, the period has to be calculated by excluding the date on which the cheque was dishonoured. A division Bench had referred the question to the larger Bench as the principle laid down in the case, in Saketh India Ltd vs India Securities Ltd, and in the case, SIL Import, USA vs Exim Aides Silk Exporters, differed with each other. The new judgment, Econ Antri Ltd vs Rom Industries Ltd, settled the question by holding that the first case laid down the correct principle and should be followed by all courts below.
Thanks
