IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
Avneesh Jhingan, J.
Hemraj - Petitioner
Versus
Rakesh Kumar Jain - Respondent
S.B. Civil Writ Petition No. 10433 of 2017
Decided On : 22-01-2024
(A) Negotiable Instruments Act, 1881 - Section 138 - Limitation Act, 1963 - Section 14(1) - Dismissal of recovery suit as time barred - Loan of Rs. 20,000/- advanced, cheque dishonored - Suit filed after more than four and half years from dishonor - Time spent in pursuing complaint under Section 138 cannot be excluded as remedies are not for the same matter. (Paras 2, 5, 8)
(B) Limitation - The time spent in prosecuting a civil proceeding in good faith may be excluded only if it relates to the same matter in issue - In this case, the complaint and the recovery suit were for different matters. (Paras 6, 8)
Facts of the case:
The petitioner advanced a loan of Rs. 20,000/- secured by a cheque which was dishonored. After the borrower's death, the complaint was dismissed, and a civil suit was filed against the borrower's brother after the limitation period.
Findings of Court:
The court found no legal error in dismissing the suit as time barred, emphasizing that the remedies pursued were not for the same matter.
Issues: Whether the time spent on the complaint under Section 138 should be excluded under Section 14 of the Limitation Act.
Ratio Decidendi: The court ruled that the remedies under Section 138 and for recovery of the loan were distinct, thus the time spent on the complaint could not be excluded from the limitation period for filing the civil suit.
Result: The petition is dismissed.
ORDER :
Avneesh Jhingan, J.
This petition is filed aggrieved of dismissal of appeal upholding dismissing the recovery suit as time barred.
2. Brief facts of the case are that the petitioner advanced a loan of Rs. 20,000/- to Shri. Jitendra Jain, proprietor of Shubham Palace. To secure the loan the borrower issued a cheque No.310664 of Rs. 20,000/- drawn at The Bank of Central Co-operative Bank, Tonk Branch. On presentation, the cheque was dishonored on 31.03.2012 with the remarks 'in-sufficient funds'. The petitioner after serving legal notice filed a complaint under Section 138 of Negotiable Instruments Act, 1881 (for short 'the Act'). During the pendency of the complaint, the borrower expired and the complaint was dismissed on 01.09.2016. Thereafter, the petitioner filed a civil suit against Rakesh Jain (brother of the deceased) for recovery of the amount borrowed by Jitendra Jain.
3. The Civil Court considering that the loan was advanced in the year 2011 and cause of action to file the civil suit arose on 31.03.2012 on dishonoring of the cheque, dismissed the civil suit as time-barred. On dismissal of appeal the present petition is filed.
4. Learned counsel for the petitioner submits that suit was wrongly dismissed as time barred. The contention is that time spent in pursuing complaint under Section 138 of the Act should have been excluded under Section 14 of the Limitation Act.
5. The contention raised by the learned counsel for the petitioner lacks merit. The undisputed facts are that the amount was borrowed by Jitendra Jain and to secure the loan, a cheque was issued. On dishonoring of the cheque, the petitioner chose only to file complaint under Section 138 of the Act. On dismissal of the complaint due to the death of the borrower, the petitioner filed the civil suit that too against the brother of the borrower. The suit was filed after more than four and half years from the date of dishonoring of the cheque.
6. section 14(1) of the Limitation Act, 1963 is reproduced below:-
7. Under Section 14 of the Limitation Act, the time period spent in prosecuting Civil proceedings relating to same matter in good faith in a Court having no jurisdiction or other cause of like nature is to be excluded.
8. In the present case, the petitioner was pursuing remedy under Section 138 of the Act. There was no impediment for the petitioner to file recovery suit within the period of limitation. It was not a case where the matter was being pursued with the Court not having jurisdiction rather petitioner had opted to pursue the complaint under Section 138 of the Act and chosen not to file a civil suit for recovery. It cannot be lost sight of that the Court before which it is pending had the jurisdiction to entertain complaint under Section 138 of the Act. The institution of complaint under Section 138 of the Act was for dishonoring of the cheque whereas suit was filed for recovery on loan advanced, both the remedies were not for same matter. In such circumstances, the period spent in pursuing a complaint under Section 138 of the Act cannot be excluded.
9. There is no legal error in the impugned order. The petition is dismissed.
The time spent pursuing a complaint under Section 138 of the Negotiable Instruments Act cannot be excluded for filing a recovery suit as they address different matters.
The cause of action for filing a complaint under Section 138 arises after 15 days from the service of the demand notice, not from the notice itself.
The limitation period for a debt should start from the expiry of the period agreed upon for repayment, and the issue of whether a cheque was issued for a time-barred debt is a matter of evidence.
Dishonour of cheque – Complaint is not maintainable before expiry of period of fifteen days from date of receipt of notice by drawer of cheque – Remedy is to file fresh complaint.
The nature of the debt must be proven during trial, and there is a presumption in favor of the holder of the cheque.
A debtor's issuance of a cheque acknowledges a debt; questions of enforceability or time-bar must be determined through evidence, not prior to trial.
Since in interpretation of statutes Court always presumes that legislature inserted every part thereof for a purpose and legislative intention is that very part should have effect above conclusion ca....
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