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2000 (9) TMI 1081 - HC - Indian Laws

Issues involved:
The appeal against the judgment of acquittal in a case under Section 138 of the Negotiable Instruments Act.

Summary:
The appellant filed a complaint against the respondent for dishonoring a cheque issued in discharge of a loan. The Magistrate convicted the respondent, but the Additional Sessions Judge acquitted him. The appellant appealed against this acquittal.

The complainant alleged that the accused issued a cheque for a loan amount, which was dishonored due to insufficient funds. The accused claimed the loan was repaid earlier and the cheque was issued under duress.

Witnesses and documents were presented by both parties during the trial.

The main contention was whether the cheque issued for a time-barred debt falls under Section 138 of the Negotiable Instruments Act. The appellant argued that the promise to repay a time-barred debt is valid under the Indian Contract Act, but the cheque must be for a legally enforceable debt to attract Section 138.

The court noted that a time-barred debt is not legally enforceable and cited a similar case from the Andhra Pradesh High Court. The appellant relied on a Madras High Court case, but the court found no valid acknowledgment of the debt in this instance.

Ultimately, the court upheld the acquittal, stating that the cheque for a time-barred debt does not constitute a legally enforceable debt under Section 138. The appeal was dismissed.

 

 

 

 

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