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Amrit Sandhu Costar vs State And Anr on 6 September, 2022

In this regard, reliance is placed by this court on the judgment of Hon'ble High Court of Delhi in Amrit Sandhu Costar Vs. State & Anr., (2022) 294 DLT 97, CC No. 8195/17 Page 17 of 28 Religare Finvest Ltd. Vs. Sudhir Jain whereby it has been held that "debt or other liability" means a legally enforceable debt or other liability and the accused cannot be prosecuted for offence under section 138 of the NI Act, 1881 for issuance of cheque for time barred liability or debt. Admittedly, the impugned cheque has been issued towards a time barred debt or liability. The period of limitation seeking recovery of the alleged loan ended at the expiry of three years after the due date of repayment of the alleged loan which expired way before the date of the impugned cheque. In view of the aforesaid discussion, this court is of the opinion that even if the entire case of the complainant company is admitted to be true, then also, the impugned cheque has been issued by the accused in discharge of a time-barred debt and as such, does not attract the criminal provisions of Section 138 of NI Act.
Delhi High Court Cites 10 - Cited by 8 - S K Jain - Full Document
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