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TMI Blog2002 (2) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have been said that debt or liability is not legally enforceable as it is a claim, which is prohibited under law. This case is not a case of that type. But at this stage of the proceedings, to say that the cheque drawn by the respondent was in respect of debt or liability, which was not legally enforceable, was clearly illegal and erroneous. - CRIMINAL APPEAL NO. 206 OF 2002 SLP (CRL.) NO. 2413 OF 2001 - - - Dated:- 8-2-2002 - R.P. SETHI AND K.G. BALAKRISHNAN, JJ. Jagdeep Dhankar, Naresh Kaushik, Shilpa Chohan, Devashish Bharuka and Lalita Kaushik for the Appellant. JUDGMENT K.G. Balakrishnan, J. - Leave granted. 2. This appeal is directed against the order passed by a learned Single Judge of the High Court o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his plea and held that even on the basis of the averments in the complaint and the sworn statement of the complainant, the alleged borrowing was four years prior to the issuance of the cheque and, hence, that debt was not legally enforceable in view of the bar of limitation and, therefore, the Magistrate was in error in taking cognizance of the alleged offence under section 138. As a result, the Addl. Sessions Judge quashed the entire proceedings and, aggrieved thereby, the appellant filed a criminal revision before the High Court of Karnataka, but the learned Single Judge upheld the view of the Addl. Sessions Judge. The appeal has now come up before us. 3. We heard the learned counsel for the appellant. The learned counsel contended th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section 138 for discharge, in whole or in part, of any debt or other liability. It is also pertinent to note that under sub-section (3) of section 25 of the Indian Contract Act, 1872, a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorised in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment, but for the law for the limitation of suits, is a valid contract. Moreover, in the instant case, the appellant has submitted before us that the respondent, in his balance-sheet prepared for every year subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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