1. The question involved in this revision is whether the second petitioner Bank could exercise its general lien and adjust the amount payable to the respondent under a cheque, towards an amount which was due to the bank from the respondent and in respect of which the suit filed by the Bank was dismissed as time barred.

2. An amount of Rs.19,588.50 was due from the respondent to Syndicate Bank, Kilthan Branch. The respondent is a native of Kilthan Island and is a contractor undertaking minor contract work of Lakshadweep administration under the PWD. For realisation of amount due from the respondent, the bank filed a suit. The suit was decreed by the trial court. On appeal by the respondent, the appellate court set aside the decree of the trial court and dismissed the suit on the ground that the suit was barred by limitation.

3. After dismissal of the suit, an account payee cheque for Rs.14,635/- dated 31.03.98, issued in favour of the respondent, was presented by him before the Syndicate Bank, Kilthan Branch. The Bank collected the cheque and adjusted the amount towards the debt which was barred and in respect of which the suit was dismissed. Intimation was given to the