The Limitation Period For Cheque Bounce Case During COVID-19

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The Limitation Period For Cheque Bounce Case During COVID-19

With a view to containing the spread of COVID-19 pandemic, the Central and State Governments have announced complete and partial lockdowns throughout the Country. The operation of Courts restricts and only urgent matters can file through e-filing and takes up by the Judges for hearing by way of video conferencing. Though the High Courts and Supreme Court have facilitated the filing of non-urgent matters online, most of the subordinate courts have not yet accustomed to the concept of e-filing. Similarly, as most of the original suits/petitions that files in subordinate courts, question as to the expiry of limitation period during the lockdown raises a serious problem. Additionally, on Cheque Bounce Case, in order to protect the interest of litigants, the Supreme Court will indefinitely extend the period of limitation.

The Law of Limitation

The law relating to limitation prescribes the time period within which a particular case has to be filed. Moreover, if a case is filed after the expiry of the limitation period, it can be disposed of by the Judge even if the question of limitation is not brought up by the other party. Additionally, Every kind of dispute has its own limitation period and for each dispute, the date from which the limitation period starts to run differs.

Dishonor of Cheques

Disputes relating to dishonor of cheques deals by the Negotiable Instruments Act. Moreover, cheques are one of the crucial modes of payment in commercial transactions. It provides surety for future payment of the debt amount.

When a Dishonour of Cheque is said to have occurred?

  • Firstly, for a cheque bounce case, a cheque is drawn by a person (payer) on an account that maintains him in favor of another person (payee).
  • Further, The cheque is drawn to discharge any debt owed or other liability towards the payee.
  • The said cheque, when presents for payment by the payee returns unpaid by the payee bank for two reasons viz.
  1. Moreover, Insufficient balance in payer’s account (or)
  2. Further, it exceeds the amount to be paid from payer’s account by an agreement made with that bank

In order to promote the use of cheques in business transactions, the law has given much protection against the dishonor of cheque. Additionally, the offense of Dishonor of Cheque bounce case is punishable by imprisonment. It is for a maximum period of two years or fine of double the amount of Cheque.