Gujarat High Court Judgment

Dishonour of cheque – Time barred debt

N.I. Act – S.138 & 139 – Limitation Act – S.18, Art.17, 18, 19 & 113 – Contract Act – S.25(3) – Dishonour of cheque – time barred debt – acknowledgement of debt – enforceability – The accused borrowed money from the complainant and provided a cheque as security without including the name of the holder or the date. A written document was executed on stamp paper acknowledging the loan. The complainant claimed that when the accused failed to repay, he filled in the cheque and added the date with the accused’s consent. However, when the cheque was presented for payment, it was dishonoured due to insufficient funds. The accused disputed the claim of giving consent for filling in the date. The court held that once the accused disputed the consent, the presumption in favor of the complainant was rebutted. Additionally, the lack of the accused’s signature on the subsequently entered date in the cheque, issued over three years ago, does not extend the limitation period for the debt.

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