The court held that even if a debt is time-barred, the issuance ...

Old debt revived by cheque, attracts penal action for dishonor.

Case Laws Indian Laws

September 19, 2024

The court held that even if a debt is time-barred, the issuance of a cheque towards such debt creates a fresh legally enforceable liability u/s 25(3) of the Indian Contract Act, 1872. This provision deems a written promise to pay a time-barred debt as a valid contract. Consequently, the dishonor of such a cheque can attract penal provisions u/s 138 of the Negotiable Instruments Act. The acquittal order was set aside, recognizing that the furnishing of a cheque for a time-barred debt effectively resurrects the debt itself through a fresh agreement u/s 25(3) of the ICA. Denying the drawee's right to invoke Section 138 despite Section 25(3)'s recognition of a fresh agreement to pay would be an unfortunate disentitlement.

View Source

← Previous Next →

The court held that even if a debt is time-barred, the issuance ...

Old debt revived by cheque, attracts penal action for dishonor.

Case Laws Indian Laws

September 19, 2024

You may also like:

Dishonor of Cheque - cheque was issued in discharge of any debt or liability of the company or not - Every award of the Lok Adalat is deemed to be decree of a civil...

Dishonor of Cheque - enforceable debt at the time of encashment - The first respondent has made part-payments after the debt was incurred and before the cheque was...

The High Court considered whether dishonored cheques were given for a legally enforceable debt. The appellant failed to prove the existence of a default by the...

Dishonor of Cheque - legally enforceable debt or not - rebuttal of presumption - both the Trial Court and the Sessions Judge's Court without analyzing the evidence...

Initiation of CIRP - admission of debt - dishonouring of the three cheques with the comments “Account Closed” - While no date of default is mentioned in the promissory...

Dishonor of Cheque - existence of legally enforceable debt or not - acquittal of the accused - presumption of innocence - the presumption under Section 139 of the NI Act...

Dishonor of Cheque - It is immaterial that the cheque may have been filled in by any person other than the drawer, if the cheque is duly signed by the drawer. If the...

Dishonour of 5 Cheque - admissibility of joint trial - The High Court held that, when all the cheques were issued by the husband and wife for the same cause of action...

Dishonor of Cheque - Insufficient Funds - case of appellant is that the alleged cheques were never issued by the petitioner for any legally enforcible debt - The offence...

Dishonour of Cheque - Legally enforceable debt or not - The offence under Section-138 arises only when a cheque that represents a part or whole of the legally...

Dishonour of Cheque - cheque issued as security - Since factum with regard to advancement of loan to the tune of Rs. 1.00 lac stands established on record and same was...

Dishonor of Cheque - insufficiency of funds - legally enforcement debt or not - if the consideration for which the instrument was made or drawn has failed subsequently,...

Dishonour of cheque - insufficient funds - presumption - standard of preponderance of probabilities - reasons to believe. Earlier, dishonour of cheque was dealt through...

Dishonor of Cheque - Different cheques, may be issued for discharging the liability, arising out of one and same transaction, are separate entities and dishonour of each...

Dishonor of Cheque - insufficiency of funds - legally enforceable debt or not - even if a cheque is a security cheque, the same is an integral part of the commercial...

Quick Updates: