AI Overview...
- Limitation Start Date for Money Recovery Suit - The limitation period generally begins from the date of the dishonoured cheque or the date of acknowledgment of debt, depending on the case. Several references confirm that the limitation clock starts either from the date the cheque was issued, dishonoured, or from the date of acknowledgment.
- For example: In Saroop Singh VS Rattan Singh (dead) through LRs. - Punjab and Haryana, the suit for recovery was within limitation as it was filed from the date of cheque issuance (17.10.2007). Similarly, Hotel Diplomat VS Folio Holdings (India) Pvt. Ltd. - Delhi states that acknowledgment of liability through dishonoured cheques can restart or extend the limitation period, with the relevant date being the dishonour date.
- Related cases: P. V. Sivaraman VS Shajan Antony - Kerala and HINDUSTAN APPAREL INDUSTRIES VS FAIR DEAL CORPORATION - Gujarat emphasize that limitation begins from the date of borrowing or the date the cheque was issued, but acknowledgment or payment can alter this start point.
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Legal provisions: Sections 18 and 20 of the Limitation Act, 1963, clarify that acknowledgment of debt or liability through a dishonoured cheque can save or extend the limitation period (HINDUSTAN APPAREL INDUSTRIES VS FAIR DEAL CORPORATION - Gujarat, Hotel Diplomat VS Folio Holdings (India) Pvt. Ltd. - Delhi).
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Impact of Dishonoured Cheque and Acknowledgment - Dishonoured cheques, coupled with acknowledgment of liability, can reset or extend the limitation period for recovery suits. The date of dishonour or acknowledgment is crucial in determining the start of limitation.
- For example: As per Hotel Diplomat VS Folio Holdings (India) Pvt. Ltd. - Delhi, acknowledgment through dishonoured cheques can be considered an acknowledgment of debt, thus affecting the limitation period.
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Legal insight: The issuance and dishonour of cheques are significant events that influence the limitation timeline, often leading to a fresh start or extension, provided acknowledgment is made within the stipulated period.
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Special Cases and Exceptions - Certain cases consider the nature of the agreement, whether conditional or unconditional payment, and the type of instrument (cheque, bill of exchange, loan agreement). The limitation period may start from the date of loan, cheque issuance, or dishonour, depending on the context.
- For example: P V SIVARAMAN vs SHAJAN ANTONY - Kerala notes that for borrowed money, the limitation begins from the loan date, not the cheque dishonour date, unless acknowledgment occurs.
- Legal principle: The law recognizes that acknowledgment or partial repayment can extend the limitation period, but the primary start point remains the date of the original transaction or instrument.
Analysis and Conclusion
The prevailing legal view, supported by multiple references, is that the limitation for recovery of money via cheque or acknowledgment begins either from the date of the cheque's issuance, dishonour, or acknowledgment of debt. The specific circumstances—such as whether the cheque was dishonoured, whether acknowledgment of liability was made, or whether the agreement was conditional—determine the exact starting point. Generally, the law favors the date of dishonour or acknowledgment as the critical date for initiating limitation, ensuring that claims are filed within the statutory period and preventing stale claims.
References:
- Saroop Singh VS Rattan Singh (dead) through LRs. - Punjab and Haryana, U. Dharmadas VS B. M. Harishchandra Bangera - Karnataka, Hotel Diplomat VS Folio Holdings (India) Pvt. Ltd. - Delhi, P V SIVARAMAN vs SHAJAN ANTONY - Kerala, P. V. Sivaraman VS Shajan Antony - Kerala, BHAGAVAT SINGH G
vs
SYAM A. - Kerala, HINDUSTAN APPAREL INDUSTRIES VS FAIR DEAL CORPORATION - Gujarat, Jiwanlal Achariya VS Rameshwarlal Agarwalla - Supreme Court, Rajesh Varma VS Aminex Holdings & Investments - Bombay
Search Results for "Suit for Recovery of Money Limitation Start from Date of Cheque"
2015 0 Supreme(P&H) 1159 • India - Punjab and Haryana
AUGUSTINE GEORGE MASIH
which was dishonoured--Limitation for suit for recovery would start from date of issuance of Cheque on debt has been acknowledged ... ... (A) Contract Act, 1872, S.25(3)--Recovery Suit--Limitation--Time ... from that date. ... It is not disputed that from the date of issue of the cheque on 17.10.2007, the suit has been filed within limitation.....
2010 0 Supreme(Kar) 805 • India - Karnataka
ARAVIND KUMAR
limitation if any limitation would start or commence from said date or any other subsequent date which may arise on account of subsequent ... Article 22 applies to suit for recovery of security deposit. ... recovery of money - Plaintiff obtained on lease shop premises on monthly rent from defendant - Lease deed captioned as ’rent bond ... In a suit for recovery of money, the int....
2012 0 Supreme(Del) 1840 • India - Delhi
V.K.JAIN
Recovery - Representation - Companies Act - Partnership Act, 1932 - Limitation Act, 1963 - Section 18 - Dishonoured Cheque - Fresh ... Period of Limitation Fact of the Case: The plaintiff filed a suit for recovery of Rs 49,56,195 against the defendants ... by limitation due to the acknowledgment of liability through the dishonored cheques. ... Therefore, 10.08.2002 would be the date of the cheque for the purpose o....
2017 Supreme(Online)(KER) 6535 • India - High Court of Kerala
B.KEMAL PASHA, J
for filing a suit for recovery of borrowed money begins from the date the loan was taken, not from the date of dishonoured cheques ... the limitation period for money recovery suits starts from the loan date, not from the date of related cheques, which were issued ... Limitation - Borrowed Amounts - Limitation Act, 1963 Sections [3, 12(1), Arti....
2017 0 Supreme(Ker) 801 • India - Kerala
B.KEMAL PASHA
- Suit for realization of amount borrowed - Commencement of Period of limitation - Held, suits were filed for recovery of the amounts ... Limitation Act 1963 - Section 19 - Dishonour of Cheque - Issuance of cheque discharging liability to pay ... 3 years from 19.01.1999 - Period of limitation commences from the date on which the amount was borrowed and not from the date on ... Baldeo Narain Tandon and others [AIR 1938 Privy Council ....
2023 Supreme(Online)(KER) 26740 • India - High Court of Kerala
M.R.ANITHA, J
than the date of cheque encashment, supporting its decision that the suit was filed within the lawful time. ... Limitation - Loan Agreement - Limitation Act, Article 20; Article 113 - The court determined that the limitation for filing suit ... Issues: The primary issues involved whether the suit was barred by limitation and the validity of alleged repayments made ... limitation applying to a suit#HL_END....
2000 0 Supreme(Guj) 419 • India - Gujarat
M.S.PARIKH, R.M.DOSHIT, R.P.DHOLAKIA
Limitation Act - Section 18 and 20 - A question arose for consideration was whether the payment by cheque ... which is dishonoured would amount to acknowledgement of a debt and a liability - By necessary consequence there will be saving of limitation ... which is dishonoured amounts to acknowledgement of a debt and a liability - Held, Merely because subsequently such a cheque is dishonoured ... of Rs. 98,428-50 ran between 7/1/1972 and 9/1/1973 and the issuance of the aforesaid cheques was quite before ....
1966 0 Supreme(SC) 178 • India - Supreme Court
J.C.SHAH, K.N.WANCHOO, R.S.BACHAWAT
or unconditionally — in the former case payment is made on the date which the cheque bears and in the latter case when the cheque ... the cheque bears and not on the date when it is handed over — really the matter turns on whether the cheque was accepted conditionally ... where a post dated cheque is accepted conditionally and later honoured payment can be taken to have been made only on the date which ... of limitation ran from tha....
2023 Supreme(Online)(KER) 20186 • India - High Court of Kerala
M.R.ANITHA, J
a loan recovery suit, emphasizing the importance of the agreed repayment period, leading to a conclusion that the suit was timely ... The defendants partially repaid, but were accused of failing to fully repay, leading to the suit for recovery. ... , affecting the limitation period for filing the suit. ... limitation applying to a suit on a dishonored cheque commences from the date of ch....
2008 0 Supreme(Bom) 19 • India - Bombay
A.M.KHANWILKAR
... Limitation Act, 1963 - Sections 5 and 12-Suit for recovery of money-Limitation ... The limitation would obviously start running from the said date. ... for-Suit filed regarding Bill of Exchange drawn on 8.5.1996-Dishonoured on 8.5.1997-Limitation starts from date of dishonour-Suit ... The limitation would obviously start running from the ....
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